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Vietnamese banks concerned as mandate forces withholding of tax money from client accounts

Tuesday, March 09, 2021, 15:54 GMT+7 A delivery worker is seen riding a motorbike on a street in Vietnam. Photo: Quang Dinh / Tuoi Tre In a bid to collect due tax from foreign service providers, Vietnamese authorities are requiring banks and payment intermediary service companies to withhold and pay tax from the accounts of e-commerce foreign contractors who do not register as a taxpayer in Vietnam, raising concerns over overload and risky transactions at local lenders. The direction was set forth in a draft circular to guide the implementation of Decree 126, which provides guidance for the application of the Law on Tax Administration.

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