The “big guys” Meta – Facebook, Google,… were able to pay taxes directly to Vietnam-Information Technology

Now, the “big” technology like Facebook, Google, … can completely pay taxes directly into the state budget of Vietnam.

On the morning of March 21, the General Department of Taxation has just announced the Portal for foreign suppliers (NCCNN). This is not only an address for NGOs to register, declare and pay taxes, but also a place where NGOs can look up information and learn about the tax legal system and related legal policies. in the field of e-commerce (e-commerce) in Vietnam.

Portal https://etaxvn.gdt.gov.vn.

Specifically, at the website https://etaxvn.gdt.gov.vn, foreign suppliers can log in and declare tax. Once the tax return is completed, the taxpayer will receive an email confirming the submission of the return and instructions to pay the tax with the tax rate and amount to be paid. Finished, the foreign supplier can look up the tax paid on this portal.

Thus, thanks to this e-commerce portal, technology “big guys” like Facebook (renamed to Meta), Google,… in foreign countries, which has a characteristic that there is no permanent establishment in Vietnam, business activities are mainly through the digital environment and on applications. Internet, will be completely able to pay taxes directly into the state budget of Vietnam. The enhancement of electronic tax services to support taxpayers will promote the development of cross-border e-commerce activities and increase revenue for the state budget.

According to information from the General Department of Taxation, in 2018 up to now, nearly 5,000 billion VND has been paid tax by foreign suppliers through organizations in Vietnam. In which, Facebook paid nearly 1,700 billion VND, Google paid over 1,600 billion VND and Microsoft paid 576 billion VND.

In Vietnam, e-commerce activities are currently in a boom period with a very high annual growth rate. According to the Vietnam E-commerce White Paper, in 2020, the growth rate of e-commerce will reach 18%, the scale will reach 11.8 billion USD and is the only country in Southeast Asia with double-digit e-commerce growth. It is forecasted that the scale of Vietnam’s digital economy will surpass the threshold of 52 billion USD and hold the third position in the ASEAN region by 2025.

“This practice requires appropriate and timely adaptations, not only in order to effectively manage but also create conditions to promote the development of e-commerce activities; at the same time, creating a level playing field between traditional business and e-commerce business, between domestic business activities and cross-border business activities.”Minister of Finance Ho Duc Phuc emphasized at the introduction ceremony.