Vietnam launches website to tax foreign tech giants
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The tax department has set up a website for collecting tax from foreign companies to make it easier for tech giants like Facebook and Google to fulfill their duties.
The Portal of the General Department of Taxation for Foreign Providers (etaxvn.gdt.gov.vn) came online Monday for companies to declare their tax and track their payments.
Until now foreign companies were paying their taxes through a third party, but now they could pay directly, Nguyen Van Phung, head of the Large Enterprise Taxation Agency, said.
By filling in their details on the website, businesses could see how much they need to pay and bank account details, he said.
“Foreign companies can now pay tax at any time, even from an airplane”.
Generally, foreign firms are required to pay value-added tax and corporate income tax every quarter. Phung said many foreign firms have been leaving their Vietnamese partners with the burden of their tax, he added. There are at least 64 foreign service providers active in Vietnam, according to tax authorities.
Vietnam taxed cross-border platforms like Google and Facebook a total of VND5 trillion ($218.53 million) in 2018-21. Authorities have been calling for properly taxing tech giants like Facebook and Google, pointing out they account for around 70 percent of the online advertisement market but evade taxes.
Questions & Answers
Q.What is the purpose of this new website for foreign companies?
What is the purpose of this new website for foreign companies?
The new website allows foreign tech giants like Facebook and Google to directly declare and pay their taxes in Vietnam. Previously, these companies paid their taxes through a third party. They can now also track their payments and see how much they owe.
Q.Which specific taxes are foreign firms usually required to pay in Vietnam?
Which specific taxes are foreign firms usually required to pay in Vietnam?
Generally, foreign firms operating in Vietnam are required to pay two main types of tax. These are value-added tax (VAT) and corporate income tax. These payments are typically made on a quarterly basis.
Q.How much tax revenue has Vietnam collected from cross-border platforms recently?
How much tax revenue has Vietnam collected from cross-border platforms recently?
Between 2018 and 2021, Vietnamese authorities collected a total of VND5 trillion, which converts to approximately $218.53 million, from cross-border platforms such as Google and Facebook. This amount covers a four-year period.
Q.How many foreign service providers are currently active in Vietnam?
How many foreign service providers are currently active in Vietnam?
According to the tax authorities, there are at least 64 foreign service providers actively operating within Vietnam. These companies are now expected to use the new online portal to manage their tax obligations.