Facebook to charge 5 pct tax on Vietnam ads
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Facebook parent Meta will charge a 5 percent value added tax on all Vietnamese advertisements starting June 1 after assuring the government it will fulfill its tax obligations.
Meta executives last week told Prime Minister Pham Minh Chinh that the company would register and pay tax as a foreign contractor doing business in Vietnam.
Authorities have been calling for properly taxing tech giants like Meta and Google, pointing out they account for around 70 percent of the online advertisement market but use various means to evade tax.
They taxed cross-border platforms a total of VND5 trillion ($218.5 million) between 2018 and last year.
Questions & Answers
Q.What percentage of tax will Facebook charge on Vietnamese advertisements?
What percentage of tax will Facebook charge on Vietnamese advertisements?
Facebook's parent company, Meta, will implement a 5 percent value added tax on all advertisements in Vietnam. This new charge is scheduled to begin from June 1st.
Q.Why is Meta implementing this new tax in Vietnam?
Why is Meta implementing this new tax in Vietnam?
Meta is introducing the tax after assuring the Vietnamese government it will meet its tax obligations. The company confirmed it would register and pay tax as a foreign contractor operating in the country.
Q.What proportion of the online advertisement market do tech giants like Meta and Google control in Vietnam?
What proportion of the online advertisement market do tech giants like Meta and Google control in Vietnam?
Authorities indicate that tech giants such as Meta and Google account for approximately 70 percent of the online advertisement market in Vietnam. They have been criticised for using various methods to avoid paying taxes.
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