Tech giants pay $220 million in taxes
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Cross-borders platforms like Facebook and Google have paid VND5.1 trillion ($220 million) in taxes for the period between 2018 and 2021, says Finance Minister Ho Duc Phoc.
He informed lawmakers in a report that by April 2021, Facebook had been taxed VND1.97 trillion; Google, VND1.9 trillion; and Microsoft, VND651 billion.
The figures were 15 percent higher than Phoc’s report in March.
Vietnamese authorities also collected VND735 billion from handling violations and tax avoidance by individuals and organizations providing cross-border digital and e-commerce services, the report said.
Last year, Vietnam earned VND1.32 trillion from taxing cross-border platforms, up 15 percent from 2020.
The General Department of Taxation said last year that Facebook, Google, Netflix, YouTube and other cross-border platforms were not fulfilling their tax obligations in Vietnam.
Vietnam is also looking to tax online sellers, both on e-commerce platforms and social media, as e-commerce sales have been surging by double-digits in recent years.
Phoc called for tightening regulations and upgrading the capacity of collectors in order to tackle tax evasion more effectively.
Questions & Answers
Q.What is the total amount paid in taxes by tech giants between 2018 and 2021?
What is the total amount paid in taxes by tech giants between 2018 and 2021?
Between 2018 and 2021, cross-border platforms including Facebook and Google paid VND5.1 trillion, which converts to $220 million, in taxes. This figure was reported by Finance Minister Ho Duc Phoc.
Q.Which tech companies were specifically mentioned as having paid taxes by April 2021, and how much did each contribute?
Which tech companies were specifically mentioned as having paid taxes by April 2021, and how much did each contribute?
By April 2021, Facebook had been taxed VND1.97 trillion, Google VND1.9 trillion, and Microsoft VND651 billion. These figures were provided in a report by Finance Minister Ho Duc Phoc.
Q.How much did Vietnam collect from taxing cross-border platforms in the last year, and how did this compare to the previous year?
How much did Vietnam collect from taxing cross-border platforms in the last year, and how did this compare to the previous year?
Vietnam earned VND1.32 trillion from taxing cross-border platforms last year. This amount represents a 15 percent increase compared to the revenue collected in 2020.
Q.What specific concerns did the General Department of Taxation raise last year regarding tax obligations?
What specific concerns did the General Department of Taxation raise last year regarding tax obligations?
The General Department of Taxation stated last year that Facebook, Google, Netflix, YouTube, and other cross-border platforms were not fulfilling their tax obligations in Vietnam. This highlights ongoing challenges with tax compliance.
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