Individuals with income through Google and Facebook who intentionally do not declare and pay taxes will be prosecuted.

Mr. Luu Duc Huy - Director of the Policy Department (General Department of Taxation) affirmed that individuals doing business on electronic websites such as Google and Facebook are deliberately not declaring and paying taxes, which is considered tax evasion. Therefore, the tax authority can transfer the case to the police to request prosecution.

Currently, more than 14,000 accounts with e-commerce business activities have been detected by the General Department of Taxation.

"Through the review, it was discovered that some individuals have income through e-commerce business activities, specifically through websites such as Google, Facebook... In cases where individuals doing business must pay taxes, but those individuals do not declare and pay taxes, the tax authority has the authority to impose penalties according to the provisions of the Law on Tax Administration. In cases where through inspection and examination, the tax authority determines that the organization or individual does not register, declare taxes, or has tax evasion, the tax authority will transfer the case to the police agency to conduct investigation and prosecution according to the provisions of law" - said Mr. Luu Duc Huy, Director of the Policy Department.

Currently, more than 14,000 accounts with e-commerce business activities have been detected by the General Department of Taxation. After notifying the Ho Chi Minh City Tax Department and the Hanoi Tax Department, the General Department of Taxation has requested tax departments to guide and disseminate tax laws and policies to organizations and individuals with e-commerce business activities to understand and fulfill tax obligations according to regulations.

The General Department of Taxation also requested tax authorities at all levels to advise the People's Committees of provinces and cities to direct relevant agencies and sectors (Department of Industry and Trade, Department of Planning and Investment, Provincial Police, Department of Information and Communications, etc.) to coordinate with tax authorities to conduct tax management for organizations and individuals conducting e-commerce business activities in the area.

At the same time, tax authorities also coordinate with credit institutions to exchange data information.

According to the Law on Tax Administration, organizations and individuals with income over 100 million VND/year must declare and pay personal income tax (PIT) and value added tax (VAT).

E-commerce business activities are identified as being able to generate income from two directions: income for Google, Facebook and income for organizations and individuals in Vietnam.

For Facebook, Google, organizations and individuals living in Vietnam use these websites to advertise, sign contracts and pay a sum of money to these websites. The General Department of Taxation said that this generates income from Vietnam to foreign organizations and individuals. Therefore, organizations and individuals paying income (in Vietnam) must deduct tax before paying to organizations and individuals with e-commerce websites (foreign).

For individuals and organizations in Vietnam, when they have income from websites providing services for e-commerce sites, they must declare and pay taxes according to tax laws with the direct tax authority.