Record Tax Collection from Foreign Suppliers

In a significant financial achievement, Vietnam has collected nearly $341 million in taxes from foreign suppliers in 2024, achieving 74% of its annual target and marking a 26% increase from the previous year.

Historical Context and Challenges

From 2019 to 2021, the tax revenue from foreign withholding taxes showed variability, with figures reaching VND1.17 trillion in 2019, over VND1.14 trillion in 2020, and more than VND1.59 trillion in 2021. The tax department highlighted ongoing challenges in managing taxes for cross-border e-commerce, citing difficulties in tracking online transactions and enforcing tax obligations on foreign suppliers without a permanent establishment in Vietnam.

Strategic Measures and Technological Integration

To combat these challenges, the tax department has embarked on several initiatives, including refining the legal framework, leveraging technology, enhancing databases, and improving communication strategies. A key focus has been on developing a Big Data repository that aggregates information from banks, e-wallets, online payment services, and international card organizations. Furthermore, the department is exploring the use of artificial intelligence (AI) to better identify and monitor cross-border e-commerce payments, aiming to ensure compliance and maximize tax revenue.