HM&P Managing Partner shares insights on tax management for livestream activities on the Saigon Times

Recently, the Managing Partner of HM&P shared his thoughts with the Saigon Times regarding the challenges and issues in tax management for livestream activities on social media platforms.

The explosion of livestream activities on social media platforms has made tax management by the government more complex and challenging. Mr. Nguyen Van Phuc, the Managing Partner of HM&P, shared some of his views on this issue, which were detailed in a video by the Saigon Times below.  

According to Mr. Phuc, from a tax law perspective, managing taxes for livestream sales activities is currently facing many difficulties. The main reason is that those participating in these activities often lack sufficient understanding of tax regulations, leading to a high rate of tax law violations. Furthermore, current laws only require e-commerce platforms to provide information about sellers when transactions occur through their online ordering functions. There are no clear regulations requiring these platforms to provide information about those participating in livestream sales to tax authorities. This creates a legal gap in controlling tax collection from these activities. Additionally, some social media platforms have yet to establish a commercial presence in Vietnam, complicating information collection and the management of livestream activities.

To address these challenges and aim for more effective tax management, Mr. Phuc suggests that tax authorities should implement the following solutions:

First, strengthen coordination among relevant parties: The law needs to be amended to require e-commerce platforms to provide detailed information about those participating in livestream sales. This could be done by requiring brands to register the information of individuals conducting livestream sales on their accounts.

Second, revise e-commerce regulations: Allow e-commerce platforms the right to request and collect information from those participating in livestream sales. This would help tax authorities more effectively monitor the business activities of these individuals.

Third, enhance cooperation with social media platforms: Tax authorities should work closely with companies providing social media platforms, information technology, and network infrastructure to collect and monitor information about individuals conducting livestream sales. This would allow for inspections and tax collection as needed.

Compliance with tax regulations is a critical obligation for all businesses during their operations. HM&P is committed to accompanying and supporting businesses in adhering to these regulations effectively and accurately.