Vietnam govt announces that it will collect taxes from Microsoft, TikTok and Netflix

Image from Vietnam News/ANN

HANOI, July 12 (Bernama): Many major foreign online service providers such as Facebook, Microsoft, TikTok, and Netflix have directly registered, declared and/or paid taxes online into the Vietnamese budget.

According to Vietnam News Agency (VNA), the General Department of Taxation reported that the tax revenue from cross-border goods and services through organisations in Vietnam declaring and paying on behalf of contractors reached 5.4 trillion VND (nearly US$235 million) from 2018 until June 29.

The average revenue is about 1.2 trillion VND per year, with the average revenue growth rate at 130 per cent.

Since the portal's opening for foreign suppliers on March 21, many large foreign suppliers have registered to pay corporate income tax and value-added tax directly through the portal.

Up to now, 23 foreign suppliers have registered, declared and paid taxes to the Vietnamese state budget, the total amount of tax paid is about US$2.4 million.

Ho Chi Minh City’s Department of Tax said that with these measures, the tax authorities initially obtained solid results in the fight against budget revenue loss.

Specifically, four commercial banks provided tax authorities with organisations and individuals with income from Google, with a total amount of money received from abroad of more than US$52.13 million in the first six months of this year. - Bernama