Foreign tech giants pay $157 million in taxes in H1
Foreign tech giants pay $157 million in taxes in H1
Foreign service providers including Google, Facebook, and Netflix, have made a tax payment of VND4 trillion ($157.34 million) in the first six months of 2024, an increase of 18.5 per cent against last year's period.
According to the Ministry of Finance, there are an additional 26 foreign service providers registered to pay taxes through the electronic portal in the first six months of 2024.
As of present, a total of 102 foreign service providers have registered, declared, and paid taxes through the electronic portal, from the United States, Netherlands, South Korea, Singapore, Hong Kong, Ireland, Switzerland, Australia, and the United Kingdom.
According to Circular No.80/2021/TT-BTC dated September 2021, foreign service providers are doing e-commerce, digital business, and other business in Vietnam without a permanent establishment. Foreign service providers like Google, Meta, Microsoft, Netflix, and Apple are on the list of those who have filed and paid taxes.
As of present, there have been 383 domestic and foreign e-commerce trading floor platforms providing information on the electronic portal, an increase of 22 compared to the end of 2023.
The General Department of Taxation (GDT) has taken several measures to improve tax management for domestic e-commerce activities. Accordingly, e-commerce activities have been divided into eight groups for easy management. These include e-commerce trading floor platforms; e-commerce website/application; social media platforms; transportation and delivery platforms; agent platforms; subscription platforms; advertising platforms; and application store platforms.
Additionally, taxpayers engaging in e-commerce activities are divided into two primary groups. One group consists of businesses and individuals who use social media and e-commerce platforms to offer domestic goods and services. Another group features foreign service providers providing cross-border products and services.
According to the GDT, revenue under tax management reached $146.28 billion, with taxes paid amounting to $3.82 billion in 2023.
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