Google, Facebook, other foreign giants pay $159M taxes online
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Companies that engage in e-commerce and other digital businesses without having an establishment in Vietnam have paid taxes of VND4.04 trillion (US$158.9 million) online in 2024, up 18.5% year-on-year.
According to the Ministry of Finance, the number of foreign service providers, as they are called, who registered to pay taxes through the electronic portal increased by 26 from the end of 2023 to 102 in June.
They include Google, Meta (Facebook), Microsoft, Netflix, and Apple.
So far, around 383 international and domestic e-commerce platforms are registered on the electronic portal, up 22 from the end of 2023.
E-commerce activities are categorized into eight groups: e-commerce platforms, online trading websites or applications, social media platforms, transportation and delivery platforms, digital agency platforms, subscription services, advertisement services, and app store platforms.
According to the General Department of Taxation, tax payments from e-commerce activities amounted to VND97 trillion last year, up 14% from 2022.
Questions & Answers
Q.What was the total amount of taxes paid online by foreign digital companies without a Vietnamese establishment in 2024?
What was the total amount of taxes paid online by foreign digital companies without a Vietnamese establishment in 2024?
These companies paid VND4.04 trillion (US$158.9 million) in taxes online during 2024. This figure represents an increase of 18.5% compared to the previous year.
Q.Which specific companies are mentioned as having paid taxes through Vietnam's electronic portal?
Which specific companies are mentioned as having paid taxes through Vietnam's electronic portal?
Google, Meta (Facebook), Microsoft, Netflix, and Apple are among the foreign service providers mentioned. They have all registered to pay taxes via the electronic portal.
Q.How many foreign service providers are currently registered to pay taxes via the electronic portal in Vietnam?
How many foreign service providers are currently registered to pay taxes via the electronic portal in Vietnam?
As of June, 102 foreign service providers have registered to pay taxes through the electronic portal. This number increased by 26 from the end of 2023.
Q.Into how many categories are e-commerce activities divided for tax purposes?
Into how many categories are e-commerce activities divided for tax purposes?
E-commerce activities are categorised into eight distinct groups for tax purposes. These include e-commerce platforms, online trading websites, and social media platforms, among others.
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