How much tax have Facebook, Google, TikTok, Netflix paid in Vietnam?

According to Mr. Nguyen Bang Thang - Director of the Department of Large Enterprise Tax (General Department of Taxation), the Ministry of Finance's putting into operation the Electronic Information Portal for Foreign Suppliers without a fixed business establishment in Vietnam is an important turning point in tax management for foreign suppliers operating across borders. The operation of the Electronic Information Portal has created favorable conditions for foreign suppliers to proactively exercise their rights to register, declare, and pay taxes directly, thereby saving costs, time, reducing administrative procedures, and improving business efficiency in the digital economy era.

Vietnam is also one of the four leading countries in the ASEAN region to implement tax collection for foreign suppliers through an online electronic portal, affirming Vietnam's tax sovereignty over e-commerce and digital-based business activities.

Facebook, Google, TikTok, Netflix... have paid 3,444 billion VND in taxes. Illustration photo: KT

Also according to the Director of the Large Enterprise Tax Department, after more than 8 months of implementing the Electronic Information Portal for foreign suppliers since March 21, up to now, 41 foreign suppliers have registered, declared and paid taxes via the Electronic Information Portal for foreign suppliers from many countries such as: the United States, the Netherlands, Korea, Singapore, Hong Kong, Ireland, Switzerland, Australia...

The total tax paid was VND 3,444 billion, of which: nearly VND 1,900 billion was declared and paid directly by foreign suppliers via the Electronic Information Portal for foreign suppliers and the remaining amount was deducted and paid by Vietnamese parties (of which, Facebook was VND 1,748 billion, Google was VND 979 billion). Of which, 6 large foreign suppliers such as Meta (Facebook), Google, Microsoft, TikTok, Netfix, Apple accounted for 90% of the market share of e-commerce service revenue on cross-border digital platforms in Vietnam, have registered for tax, declared tax and paid tax in Vietnam.

Mr. Nguyen Bang Thang said that managing foreign enterprises providing cross-border services to Vietnam does not only perform the function of tax collection management, so it requires the participation of the political system and service users. In the coming time, the Large Enterprise Tax Department will continue to perfect the legal basis to regulate and guide compliance; build a big data database to serve tax analysis and management according to the risk principle.

“Sharing data and information among state management agencies will facilitate the Tax Authority to build a complete database system on the activities and transactions of e-commerce and digital services in Vietnam,” Mr. Nguyen Bang Thang emphasized.

In the long term, the tax sector will encourage foreign suppliers to declare taxes through tax agents, thereby conducting inspections and examinations of the implementation of tax obligations of foreign suppliers through records and documents at the tax agent. In addition, tax inspections and examinations for the e-commerce and digital services sectors will be conducted mainly at the tax authority's headquarters through comparison of data from trading floors, bank payment data and data declared by taxpayers.

According to Mr. Thang, with the complex and constantly changing nature of the e-commerce sector, the Large Enterprise Tax Department has identified strengthening tax management for e-commerce activities as an important task. Tax management for e-commerce activities is built on the principles of fairness, unity, synchronization, adaptability to changes in the business environment on digital platforms; close coordination with relevant departments, branches, and localities and application of information technology in controlling and supporting taxpayers in fulfilling their tax obligations; ensuring a favorable environment, encouraging production and business. At the same time, it has the nature of deterring and penalizing tax law violations for e-commerce activities of taxpayers.