Banks must provide information about transactions of customers for tax authorities of Vietnam from December 05

Specifically, according to Clause 2 Article 26 of the Decree No. 126/2020/NĐ-CP of Vietnam’s Government: “State Bank of Vietnam (SBV) shall cooperate with the Ministry of Finance in instructing commercial banks, credit institutions, payment service providers licensed by SBV to connect to and provide information for tax authorities about transactions of organizations and individuals; cooperate with tax authorities in tax enforcement.”

Besides, commercial banks shall provide information about taxpayers’ checking accounts opened at the banks for tax authorities as follows:

At the request of tax authorities, commercial banks shall provide information about checking accounts of each taxpayer, including: account holder's name, account number according to TIN issued by the tax authority, account opening date, account closing date.

In which:

- The information shall be provided within 90 days from December 15, 2020.

- Update to this information shall be monthly updated within 10 days of the next month.

- Information shall be provided electronically.

Moreover, commercial banks shall provide information about account transactions, account balance, transaction data at the request of the head of the tax authority for the purposes of tax inspection and tax enforcement.

With this regulation, many people worry that their personal information will be exposed, causing a feeling of insecurity, and leading to the tendency to switch to using cash. However, Decree No. 126/2020/NĐ-CP of Vietnam’s Government has specified that tax authorities shall protect and be responsible for the confidentiality of the information provided as prescribed by the Law on Tax Administration and relevant laws, so that users can rest assured to use without fear of revealing personal information.

Le Hai

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