VN collects taxes from Microsoft, TikTok, Netflix

July, 12/2022 - 07:55
Many major foreign network service providers such as Facebook, Microsoft, TikTok, Netflix have directly registered, declared and paid taxes online into the Vietnamese budget.

Facebook, Microsoft, Tiktok, and Netflix have directly registered, declared and paid taxes online into the Vietnamese budget.— Photo thanhnien.vn

HÀ NỘI — Many major foreign online service providers such as Facebook, Microsoft, TikTok, and Netflix have directly registered, declared and/or paid taxes online into the Vietnamese budget.

The General Department of Taxation reported that the tax revenue from cross-border goods and services through organisations in Việt Nam declaring and paying on behalf of contractors reached VNĐ5.4 trillion (nearly US$235 million) from 2018 until June 29.

The average revenue is about VNĐ1.2 trillion per year, with the average revenue growth rate at 130 per cent.

Since the portal's opening for foreign suppliers on March 21, many large foreign suppliers have registered to pay corporate income tax and value-added tax directly through the portal.

Up to now, 23 foreign suppliers have registered, declared and paid taxes to the Vietnamese state budget, the total amount of tax paid is about $2.4 million.

For example, with Facebook (Meta), TikTok, and Netflix, the tax amount declared and paid directly on the portal in the first quarter of this year is as follows: Microsoft paid $0.5 million, TikTok VNĐ34.5 billion, Netflix VNĐ7.8 billion. Facebook will pay tax on all revenue (from organisations and individuals) in the second quarter of the year.

The HCM City Tax Department said that with these measures, the tax authorities initially obtained solid results in the fight against budget revenue loss.

Specifically, four commercial banks provided tax authorities with organisations and individuals with income from Google, with a total amount of money received from abroad of more than $52.13 million in the first six months of this year.

Tax authorities have handled 38 individuals with income from Google, with arrears, fines and late payment interest of VNĐ169 billion and three enterprises with arrears tax, fines and late payment interest of VNĐ327 million.

Some tax departments have significant revenues, such as the Hà Nội Tax Department with about VNĐ358 billion, HCM City Tax Department with about VNĐ146 billion, and Đà Nẵng Tax Department with about VNĐ67 billion. — VNS

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