Deputy Minister Nguyen Duc Chi announced that individuals earning revenue from livestream sales will be required to declare and pay personal income tax. Livestreaming online sales have become a popular economic activity subject to tax laws, similar to e-commerce in general. Those involved in this activity must report their income and pay taxes accordingly, whether they are individual sellers or family business households following presumptive tax rules.
The popularity of livestream sales has been on the rise, especially on e-commerce platforms. McKinsey & Company forecasts that live shopping via livestream could account for up to 20% of total e-commerce sales by early 2026. This activity generates significant revenue for both sellers and livestream hosts, making it a taxable source of income under the Personal Income Tax Law. Individuals earning over 100 million VND annually must declare and pay taxes on their livestream sales income.
The Ministry of Finance recognizes the diversity of business forms in e-commerce and has proposed solutions to enhance tax management in this sector. One proposal is to amend regulations to require owners of e-commerce platforms to declare and pay taxes on behalf of individuals conducting business on their platforms. This streamlined approach aims to simplify tax administration and reduce costs associated with tax declaration processes.
The General Department of Taxation will continue to explore feasible solutions to ensure effective tax management in the e-commerce sector, aligning with international practices. Minister Ho Duc Phoc emphasized the focus on collecting taxes from domestic e-commerce platforms and online trading businesses this year, leveraging data connectivity with agencies like the police and banks to strengthen control over e-commerce payments.
In conclusion, the Ministry of Finance is committed to improving tax management in the e-commerce industry, aiming to increase tax revenue through electronic channels and enhance compliance with tax regulations. By implementing efficient tax collection mechanisms and leveraging digital solutions, the government aims to support the growth of the e-commerce sector while ensuring fair taxation practices.
