Vietnam taxed tech giants $218 mln in four years
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Vietnam taxed cross-border platforms like Google and Facebook some VND5 trillion ($218.53 million) in 2008-2021, Finance Minister Ho Duc Phoc informed lawmakers Wednesday.
During the four-year period, Facebook was taxed VND1.69 trillion, Google, VND1.62 trillion, and Microsoft, VND577 billion, Phoc said.
Last year, Vietnam earned VND1.32 trillion from taxing cross-border platforms, up 15 percent from 2020, he added.
Vietnamese authorities have been calling for properly taxing tech giants like Facebook and Google, saying these companies account for around 70 percent of the online advertisement market, but use different means to evade tax.
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.
Questions & Answers
Q.What was the total amount Vietnam taxed cross-border platforms over the four-year period?
What was the total amount Vietnam taxed cross-border platforms over the four-year period?
Vietnam taxed cross-border platforms approximately VND5 trillion, which converts to $218.53 million, between 2008 and 2021. This was confirmed by Finance Minister Ho Duc Phoc.
Q.Which tech company paid the most in taxes to Vietnam during the period mentioned?
Which tech company paid the most in taxes to Vietnam during the period mentioned?
Facebook paid the largest amount, contributing VND1.69 trillion in taxes to Vietnam during the four-year period. Google was the next highest at VND1.62 trillion.
Q.What is Vietnam's stance on the tax contributions of tech giants operating in the country?
What is Vietnam's stance on the tax contributions of tech giants operating in the country?
Vietnamese authorities believe tech giants like Facebook and Google, despite dominating 70 percent of the online advertisement market, are using various methods to evade their tax obligations. They are actively calling for proper taxation.
Q.Are there any plans to tax other types of online businesses in Vietnam?
Are there any plans to tax other types of online businesses in Vietnam?
Yes, Vietnam is also planning to tax online sellers who operate on e-commerce platforms and social media. This is due to a significant rise in e-commerce sales in recent years.
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