Hanoi (VNS/VNA) -Cross-border transactions are in the crosshairs as Decree 126/2020/ND-CP - thelatest regulation on tax administration - is to come into effect onDecember 5, said senior tax officials in a recent press conference.  

Commercial banks are to berequired to turn taxpayers' account information over to tax agencies. For thetime being, the agencies only require the names of the owners, account numbersand the dates on which the accounts were opened or closed, according to Luu DucHuy, Director of the Department of Tax Policies under the General Department ofTaxation. 

Huy stressed the need for taxagencies to be able to monitor the cash flow generated by transnationalbusinesses, especially those that operate online. 

"The single most importanttool for us is to closely monitor the cash flow and this could be achieved withthe cooperation of commercial banks," he said. 

For instance, commercial banksand other financial institutions have an obligation to fulfil any tax duties oftheir foreign-based clients, who sold goods and services - including e-commerceproducts and services - into Vietnam's market yet failed to register or failedto declare income or meet financial duties to the country's tax authority. 

In cases the banks were unableto do so, they must compile a list of transactions and the amount transferred,which will later be submitted to the general department. 

"Commercial banks areamong many other tools at our disposal to monitor and manage revenue bye-commerce businesses in and out of the country," Huy said. 

Internet giants such as Google,Facebook and Youtube are likely to be singled out and put under scrutiny underthe new decree. 

Not just business-to-businesstransactions, personal account transactions will also be monitored, said DangNgoc Minh, the general department's deputy director. 

"We prefer foreign-basedbusinesses to register with the tax authority. However, should they fail tocomply we will be collecting evidence and request commercial banks to trackpersonal accounts that were involved," Minh said. 

Meanwhile, payments made topersonal bank accounts from Google, Facebook and Youtube will be monitored forirregularities. In the meantime, tax agencies continue to encourage individualsto come forward and register and declare income with the authority. 

The general department has beenworking on a solution for big tech companies such as Amazon, Netflix, Google,Facebook and Youtube to meet their financial duties for businesses in Vietnam./.