Microsoft, Netflix, TikTok have paid taxes directly in Vietnam

The leader of the General Department of Taxation said that this agency has managed and collected taxes directly from suppliers. In 2021, the number of cross-border tax payments in Vietnam is more than 1,300 billion.

Specifically, Deputy General Director of the General Department of Taxation Dang Ngoc Minh said that after the tax authorities built and operated an electronic portal for foreign suppliers, these businesses basically declared and submitted a tax return. full tax.

According to Mr. Minh, this is a breakthrough for the General Department of Taxation on the international and regional level. After clarifying and communicating with major suppliers such as Microsoft, Netflix, TikTok, etc., these businesses have complied with Vietnam’s tax regulations.

Not only the above group of businesses, according to Mr. Minh, the General Department of Taxation has conducted direct tax collection with many other foreign service providers not based in Vietnam such as Facebook, YouTube, Google…

“Through work, basically these businesses want to access the Vietnamese market and when there are favorable tools, they all comply with tax declaration and payment,” Mr. Minh emphasized.

Foreign service providers not headquartered in Vietnam have declared and paid taxes directly to the General Department of Taxation. Photo: TL

With the tax management of individuals through the eTax Mobile application, the Deputy Director of the General Department of Taxation said that he has directed and assigned targets to all tax departments, especially tax branches, and the tax team propagates to individuals. Individuals and business households use and declare through the application.

From now until the end of the year, the General Department of Taxation expects that the percentage of business households and individuals using eTax Mobile can reach a high level and ensure tax management activities with these individuals.

Ms. Nguyen Thi Lan Anh, Director of the Small Business and Individual Tax Department, said that not only foreign service providers have paid taxes directly in Vietnam, now, individuals have revenue from businesses. All foreign suppliers have been identified, managed and declared by the General Department of Taxation.

According to data from tax authorities, in the period 2018-2021, the total tax collected from cross-border service providers is about approx. 4,400 billion VND. In which, the revenue from Facebook is nearly 1,695 billion and from Google is 1.618 billion, Microsoft pays 576 billion VND

In 2021 alone, the tax revenue from cross-border services is 1,317 billion VNDan increase of 15% compared to 2020.

However, the above tax revenue mainly comes from the advertising agencies of these cross-border platforms in Vietnam, which pay the 10% contractor tax instead. While the main revenue that Facebook, Google recognizes from customers using services in Vietnam, has not been managed and paid taxes.

It is estimated that this revenue accounts for 70% of Facebook’s revenue and 50% of Google’s revenue generated in the Vietnamese market each year.

For businesses that declare and pay taxes directly, Vietnamese tax authorities can collect trillions of VND in tax each year from these businesses.

Recently, Meta – Facebook’s parent company – has also issued a notice asking customers from Vietnam who post ads on this social network to pay an additional 5% value added tax (VAT) for businesses to proceed. pay contractor tax in Vietnam.

According to Facebook, adding VAT is mandatory for users who make ads whether for business or personal purposes.

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