Crafted by the Ministry of Finance, the draft circular guides the implementation of the 2019 Law on Tax Administration and Decree No 126/2020/ND-CP dated October 19, 2020 of the Government providing further guidance on its execution.
Overseas suppliers who have no permanent establishment but conduct e-commerce or digital-based business activities and derive income from individuals and organisations in Vietnam shall still be treated as permanent entities in the country.
They shall be obliged to make online tax registrations and declarations on the General Department of Taxation’s official portal, and be allowed to open more than one bank account for making tax payments but have one email only to receive tax notifications.
The draft circular also stipulates the obligation of banks and payment intermediary service companies to define transaction accounts of foreign suppliers who have no permanent establishment in Vietnam to withhold taxes.
