Which Facebook business accounts are taxable?
Facebook business accounts with large revenue that have not declared taxes will be reviewed and calculated by tax authorities to collect taxes.
The Ho Chi Minh City Tax Department said that its data center is currently filtering information from Facebook accounts with business activities to calculate tax collection. However, the agency also said that not all personal Facebook accounts with business activities have to pay taxes, only personal Facebook accounts with large sales and have not declared taxes are targeted.
Meanwhile, accounts that only do small, irregular business with low sales will not be required to declare and pay taxes. After screening, if there are cases that the tax authority deems necessary to inspect, they will be included in the plan, while the remaining cases will be urged and reminded.
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| Facebook accounts with high revenue will be filtered for tax collection. |
It is expected that this week, the Ho Chi Minh City Tax Department will submit to the Ho Chi Minh City People's Committee a plan to coordinate with relevant departments to collect taxes on e-commerce business management, including collecting taxes on Facebook accounts that are doing business.
Previously, the Ho Chi Minh City Tax Department had drafted a plan to coordinate with other departments and agencies to increase the effectiveness of tax management for online sales and Facebook. The specific plan was reported to the city by the Tax Department in early April.
This draft mentions the need to strengthen coordination between functional agencies to provide the most complete information on the online business situation. Therefore, the relevant units proposed by the tax authority to coordinate initially are the Department of Information and Communications, the Department of Industry and Trade, network operators, banks, post offices, etc.
Ms. Le Thi Thu Huong - Deputy Director of Ho Chi Minh City Tax Department - said that the tax collection for Internet businesses or e-commerce enterprises is still being carried out by the tax sector in some areas.
The general direction of the tax authority is to require people doing business on social networks to provide information such as name, address, phone number, personal tax code, etc. to be able to more closely control this form of business. This is something that the tax authority needs the coordination of relevant authorities to make things more convenient.
The issue of tax collection for online businesses has been mentioned quite a lot because of its complexity and difficulty in management. However, the management agency affirmed that it will calculate tax collection not only for sales on Facebook but also on social networks such as Instagram, YouTube...
Up to 35% of businesses are selling on social networks, and there may be millions of individuals and businesses selling on Facebook with large revenues but not paying taxes.
Experts say this tax collection is to create fairness for taxpayers. Many individuals selling on Facebook are making huge sales but not paying taxes, while those selling similar items but using stores still have to pay taxes.
According to Zing
