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Tax administration of personal transactions with YouTube, Facebook, Google, Amazon to be tightened

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The tax authority will coordinate with commercial banks to manage taxes with cash flow in and out of digital platforms such as YouTube, Google, Facebook, Amazon, and Netflix arising from transactions in Vietnam, including from individuals.

Siết quản lý thuế của giao dịch cá nhân với YouTube, Facebook, Google, Amazon

Mr. Dang Ngoc Minh, Deputy Director of the General Department of Taxation, chaired a press conference on Decree 126. Photo Duy Vu

According to new regulations, from December 5 commercial banks are responsible for providing bank account information of taxpayers and those paying taxes on behalf of overseas organizations and individuals that have e-commerce business activities in Vietnam.

Mr. Luu Duc Huy, Director of the Tax Policy Department (General Department of Taxation), told the media on December 1 that, according to Clauses 2 and 3, Article 30 of Decree 126, commercial banks are responsible for providing information about taxpayers’ payment accounts to tax authorities, including the name of the account holder, the account number according to the taxpayer’s tax code, and date of opening and closing of the account.

Huy stressed the need for tax agencies to be able to monitor the cash flow generated by transnational businesses, especially those that operate online. “The single most important tool for us is to closely monitor the cash flow and this could be achieved with the cooperation of commercial banks,” he said.

For instance, commercial banks and other financial institutions have an obligation to fulfil any tax duties of their foreign-based clients, who sold goods and services – including e-commerce products and services – into Vietnam’s market yet failed to register or failed to declare income or meet financial duties to the country’s tax authority.

In cases the banks were unable to do so, they must compile a list of transactions and the amount transferred, which will later be submitted to the general department.

Huy explained that to manage the implementation of tax obligations of e-commerce traders based on cross-border platforms, it is necessary to manage cash flow. “The most important step is to control cash flow. This can be managed through banks,” Huy said.

Officials of the General Department of Taxation said that after Decree 126, there will be a circular guiding the obligation of declarations for cross-border e-commerce businesses in Vietnam.

The tax agency also plans to work with consulting and auditing companies to invite Youtube, Amazon, Google, Netflix … to work with tax authorities on their tax obligations.

“Businesses are responsible to pay corporate income tax and value-added tax for services involving cross-border transactions with Vietnam,” said Mr. Dang Ngoc Minh, Deputy General of the General Department of Taxation.

Internet giants such as Google, Facebook and Youtube are likely to be singled out and put under scrutiny under the new decree.

Not just business-to-business transactions, personal account transactions will also be monitored, said Dang Ngoc Minh, the general department’s deputy director.

“We prefer foreign-based businesses to register with the tax authority. However, should they fail to comply we will be collecting evidence and request commercial banks to track personal accounts that were involved,” Minh said.

Meanwhile, payments made to personal bank accounts from Google, Facebook and Youtube will be monitored for irregularities. In the meantime, tax agencies continue to encourage individuals to come forward and register and declare income with the authority.

Duy Vu

Source: https://vietnamnet.vn/en/sci-tech-environment/tax-administration-of-personal-transactions-with-youtube-facebook-google-amazon-to-be-tightened-695828.html

Sci-tech-environment

Tech unicorn VNG to list on UPCoM

Vietnamese tech giant VNG Corporation is finalizing its list of shareholders to prepare for a listing on the Unlisted Public Company Market (UPCoM) exchange.

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Towards this, it has asked shareholders to complete their transactions before 5 p.m. November 28. All further transactions will be delayed until its shares are up on the UPCoM, an exchange set up to encourage companies to list their stocks.

UPCoM is one of three bourses in Vietnam, of which the Ho Chi Minh Stock Exchange (HoSE) is the biggest with the highest criteria. It requires a company to post profits within the previous two years to list.

VNG, however, posted a loss of over VND70 billion last year.

The unicorn, a startup with a valuation of more than $1 billion, has also announced that its three foreign shareholders, Tenacious Bulldog Holdings Limited, Prosperous Prince Enterprises Limited and Gamevest PTE, have reduced their stakes to below 5% each.

Tenacious Bulldog and Prosperous Prince had a 28.46% stake in VNG, while Gamevest had an 8.14% stake.

The listing on UPCoM is an unexpected move by VNG, given that it had earlier announced plans to list on NASDAQ.

In the first nine months of the year, VNG posted losses of over VND764 billion.

Founded in 2004, VNG operates Zalo, a highly popular messaging and social network platform in Vietnam.

Source: VnExpress

Source: https://e.nhipcaudautu.vn/tech/tech-unicorn-vng-to-list-on-upcom-3349253/

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Vietnam’s Cerberus Esports team wins 6th place at PUBG Global Championship 2022

Vietnamese League of Legends esports team has set record for Vietnam and the APAC region after winning 6th place at PUBG Global Championship 2022, after a month of fierce competition in Dubai.

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The achievement brought the Vietnamese esports team VND3.78 billion ($152,500) in reward. Cerberus Esports team members who have averaged age of 19.6 has set six records for Vietnam and the APAC region.

Cerberus is also one of the teams that have never had experience in an international tournament. It started the competition with low expectations from international pundits. Twire.gg rated Cerberus to finish the game in 19th place.

However, it performed beyond the audience’s expectations. From the beginning, Cerberus demonstrated good performance and got important scores. The Vietnamese young men got 114 points and became the 6th ranked team in the world, setting unprecedented records for Vietnam as well as the APAC region.

“Our players, who are between 18 and 20 years old, set the record, proving that Cerberus team has great potential. We are confident to maintain our position as one of the leading e-sports teams in Vietnam,” said Michael Minsoo Chung, Cerberus Esports Operations Director.

“We have high hopes to become a team that will bring greater development opportunities for Vietnamese e-sports,” he added.  

Photo: Cerberus Esports
Photo: Cerberus Esports

At PUBG Global Championship 2022, 32 teams from four regions, including 12 from Asia, 8 from Europe, 6 from the Asia Pacific, and the remaining 6 from the Americas competed for a total prize of $2 million.

Founded in 2018, Cerberus Esports is a professional e-sports organization headquartered in Ho Chi Minh City. It is currently a training and competition place for five teams from five different e-sports.

Saudi Arabia to invest $38 billion in esports 

In a related development, Saudi Arabia has planned to invest $38 billion to turn the kingdom into a hub for e-sports by 2030 as part of its plan to diversify the economy of the world’s largest oil exporter, Bloomberg News reported.  

Photo: Cerberus Esports
Photo: Cerberus Esports

Savvy Games Group, a subsidiary of the country’s sovereign wealth fund, will invest $13 billion in acquiring and developing a games publisher and $18.7 billion in acquiring minority holdings in gaming firms. It will also invest $5.3 billion in established companies in the gaming sector.

Saudi Arabia has already begun to invest actively in the e-gaming business. It owns shares in Activision Blizzard Inc., Electronic Arts Inc., and Nintendo Co. through its Public Investment Fund. The plan has threatened South Korea’s esports suzerainty status.

Source: https://e.nhipcaudautu.vn/tech/vietnams-cerberus-esports-team-wins-6th-place-at-pubg-global-championship-2022-3349269/

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Vietnam to become a regional Digital Hub

Vietnam is aiming to become a Digital Hub, a place to transfer, connect, store and process data regional and world data.

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The Ministry of Information and Communications’ proposed information and communication infrastructure plan for the years 2021 to 2030 is to make Vietnam a “Digital Hub” where data from across the world may be transferred, connected, stored, and processed.

The term “Digital Hub” refers to a network of data storage facilities, cloud computing infrastructure, and Internet traffic exchanged by super developers, as well as global telecommunications, information technology, and digital content, which offer services in several nations and regions.

Vietnam has geographic advantages to become a regional digital hub, according to the Ministry of Information and Communications, including its location between Northeast Asia and Southeast Asia, close proximity to important and dynamic development centers in the region and the world, where many economies serve as growth engines, and its location on the trans-Asian road route established by the United Nations Economic and Social Commission for Asia and the Pacific in order to coordinate regional development.

Additionally, Vietnam is situated on the primary axis of the East-West Economic Corridor (EWEC), which connects the Pacific and Indian Oceans, offering tremendous potential for quick, economical, and efficient freight transit. 

The chance that Vietnam will emerge as the region’s digital hub is also demonstrated by the number of Internet users and, in particular, the data traffic that migrates to Vietnam. 

Statistics show that there are presently more than 72 million Internet users in Vietnam, with certain applications like Facebook having up to 75.6 million active users and accounts, and Zalo having more than 75.6 million active users, and 74.1 million active users, respectively.

Source: VnEconomy

Source: https://e.nhipcaudautu.vn/tech/vietnam-to-become-a-regional-digital-hub-3349082/

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