Tax authorities have revealed increasingly sophisticated schemes by individuals and businesses to evade taxes, with some earning hundreds of billions of dong while declaring little to no income.
High earnings, zero declarations
At the mid-year tax sector review held on July 10, Phan Tien Hoa, Deputy Director of the Hanoi Tax Department, emphasized that e-commerce has become a dominant economic trend, reshaping traditional business models and presenting new challenges for tax enforcement.
Platforms such as Facebook, TikTok, and YouTube are not only consumer hubs but also booming marketplaces. Many influencers and celebrities have established lucrative operations through these platforms, often skirting tax obligations.
Phan Tien Hoa discusses tax evasion tactics by online sellers. Photo: C.T
According to Hoa, some entities have deployed deceptive strategies like operating multiple bank accounts to split revenue streams, maintaining different sets of accounting books, or disguising themselves as sole proprietorships or limited companies to obscure actual income and evade taxes.
One high-profile case involved Do Manh Cuong, who primarily sold phone accessories via Tiki, Shopee, and Lazada. Despite raking in over VND 100 billion (approximately USD 3.9 million), Cuong failed to declare income, evading more than VND 2.5 billion (about USD 98,000) in taxes.
In June, three additional cases of large-scale tax evasion were uncovered:
First, TikToker Vu Nam Phuong and American Pharmaceutical Joint Stock Company reportedly had significant online and retail revenue but failed to issue invoices or report income, causing losses exceeding VND 10 billion (USD 391,000).
Second, Hanoi-based MI Co., Ltd., led by Doan Manh Hoa, allegedly earned VND 33 billion (USD 1.3 million) via multiple e-commerce channels but avoided taxation by funneling revenue through personal accounts. The investigation remains ongoing.
Third, Nguyen Thi Thu Huong, born in 1987, reportedly sold branded handbags and watches on Facebook. Initial findings suggest her operations generated VND 834 billion (USD 32.6 million) in revenue, with over VND 12.5 billion (USD 490,000) in taxes evaded.
As of June 2025, tax collections from e-commerce businesses via the national portal (Portal 888) have reached VND 1.02 trillion (USD 40 million), representing 55% of the national total, thanks to effective data sharing between tax authorities and e-commerce platforms, social media, and payment and logistics providers.
Major tax law reforms in progress
Deputy Minister of Finance Cao Anh Tuan speaking at the tax review meeting. Photo: N.L
Deputy Minister of Finance Cao Anh Tuan praised the sector for its performance in the first half of 2025, reporting over VND 1.18 trillion (USD 46 million) in budget revenue, up 38.1% year-on-year.
Looking ahead, the tax sector is focused on revising key tax laws, including the Law on Tax Administration, the Personal Income Tax Law, and regulations on corporate income tax. The deputy minister emphasized the need for equitable tax policies that account for private businesses, microenterprises, and individual households.
To prepare for the 2026 shift from fixed-rate taxation to revenue-based tax declarations for all business households, the ministry is implementing digital tax infrastructure, including e-invoicing via POS systems. Ho Chi Minh City has already surpassed its rollout goal, equipping 18,370 businesses - 107% of its target.
Doan Minh Dung, Director of the HCMC Tax Department, proposed flexible conversion plans tailored to long-established businesses, older proprietors, and low-income vendors. He also called for simplified accounting requirements and free software support to facilitate digital transformation.
Dung suggested that the city's tax authority be empowered to draft proposals for converting fixed-tax households into declarative taxpayers or businesses by Q3 and Q4 of 2025.
In the first half of 2025, 3.03 million households submitted tax declarations. Of those, 2.11 million were taxable, and 920,000 were non-taxable. Total tax revenue from business households hit VND 17.1 trillion (USD 668 million), up 131% from the same period in 2024. The number of active households rose 8% to 2,072,905.
Notably, 13,699 fixed-tax households transitioned to revenue-based declarations, and 1,474 converted to business models - 910 of them in June alone.
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