Shall users using the livestream feature in Vietnam verify user accounts via personal identification numbers from December 25, 2024? Shall users using the livestream feature for commercial purposes pay personal income tax in Vietnam?

Shall users using the livestream feature in Vietnam verify user accounts via personal identification numbers from December 25, 2024?

Pursuant to point e, clause 3, Article 23 of Decree 147/2024/ND-CP regulating the provision of cross-border information as follows:

Provision of cross-border information

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3. Only foreign organizations, enterprises, and individuals providing cross-border information into Vietnam using data storage leasing services within Vietnam or having regular total visits from Vietnam (average statistics over a continuous 6-month period) reaching 100,000 (one hundred thousand) visits or more, have the following responsibilities:

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e) Authenticate the accounts of users of social networking services with a mobile phone number in Vietnam. In the case where users confirm they do not have a mobile phone number in Vietnam, foreign organizations, enterprises, or individuals providing social networking services shall authenticate the account with a personal identification number according to the laws on identification and electronic authentication.

In the case of a user of social networking services using the livestream feature for commercial purposes, foreign organizations, enterprises, or individuals providing social networking services shall authenticate the account with a personal identification number according to the laws on identification and electronic authentication.

Ensure that only authenticated accounts are allowed to post information (write articles, comment, livestream) and share information on social networks;

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Thus, from the effective date of Decree 147/2024/ND-CP on December 25, 2024, users of social networking services utilizing data storage leasing services in Vietnam or having regular total visits from Vietnam (average statistics over a continuous 6-month period) reaching 100,000 (one hundred thousand) visits or more, using the livestream feature for commercial purposes must authenticate the account with a personal identification number per the legal provisions on identification and electronic authentication.

Shall users using the livestream feature in Vietnam verify user accounts via personal identification numbers from December 25, 2024? Shall users using the livestream feature for commercial purposes pay personal income tax in Vietnam? (Image from the Internet)

Shall persons using the livestream feature for commercial purposes have to pay personal income tax in Vietnam?

Based on point đ, clause 1, Article 2 of Circular 40/2021/TT-BTC which stipulates individuals are required to pay personal income tax (PIT) in the following cases:

Applicable Subjects

1. Business households or individuals being residents conducting the production or business of goods and services in all fields and occupations according to the law, including some of the following cases:

a) Practicing independently in fields and occupations licensed or certified as practicing according to the law;

b) Acting as agents selling at the correct price for lottery agencies, insurance agencies, multi-level sale agencies where the individual directly signs a contract with the lottery, insurer, or multi-level marketing company;

c) Cooperating in business with organizations;

d) Producing, trading in agriculture, forestry, making salt, cultivating, capturing aquatic products that do not meet conditions for tax exemption under the laws on VAT and PIT;

đ) Engaging in electronic commercial activities, including cases where individuals derive income from digital content products and services according to the e-commerce laws.

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Simultaneously, based on clause 1, Article 3 of Decree 52/2013/ND-CP which defines the concept of electronic commerce activities as follows:

Terminology Explanation

1. Electronic commerce activity is conducting part or the whole process of commercial activities by electronic means connected to the Internet, mobile telecommunications networks, or other open networks.

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Therefore, the activity of use the livestream feature for commercial purposes on e-commerce platforms is considered an electronic commerce activity, generating income from digital content products and services. Consequently, users using the livestream feature for commercial purposes must pay PIT.

What are the tax calculation principles for persons using the livestream feature for commercial purposes in Vietnam?

Based on Article 4 of Circular 40/2021/TT-BTC that stipulates the tax calculation principles for persons using the livestream feature for commercial purposes as follows:

- Tax calculation principles for business individuals are implemented according to current tax laws on VAT, PIT, and related regulatory documents.

- Business individuals with revenue from production and business activities in a calendar year up to 100 million VND are not required to pay VAT and PIT according to the legal regulations on VAT and PIT. Business individuals must declare taxes accurately, honestly, fully, and submit tax dossiers on time; bear responsibility before the law for the accuracy, honesty, and completeness of the tax dossiers as prescribed.

- In cases where individuals conduct business as a group or household, and the revenue up to 100 million VND/year to determine individuals not required to pay VAT and PIT is calculated for one (01) single representative of the group or household during the tax year.