Collecting billions of dollars a year, how much tax do Google and Facebook pay in Vietnam?

Facebook, Google and Microsoft revenue increased slightly year by year

According to the Ministry of Finance, in the past time, with the development of the digital economy, doing business on digital platforms has become popular. On the basis of information extraction, Vietnam currently has about 139 owners of e-commerce trading floors, of which there are 41 sales floors, 98 service providers, and 3 partner companies. of foreign suppliers.

The average number of customers accessing the above platforms reached 3.5 million visitors per day.

In 2020, answering a delegate at the National Assembly, Minister of Information and Communications Nguyen Manh Hung said, “Currently, Google, Amazon, Facebook and Apple generate revenue in Vietnam. billions of dollars but have not paid taxes.

According to the report Vietnam Digital Marketing Trends 2021, Vietnam’s online advertising revenue is about 955 million USD, of which 80% of this huge revenue goes to Google, Facebook…

This report is compiled and analyzed data from reputable information sources on Digital Economy & Digital Marketing in Southeast Asia and Vietnam as well as comments from more than 50 top Vietnamese Digital Marketing experts. .

According to the Ministry of Finance, in order to effectively manage business activities on the digital platform, the Ministry of Finance has strengthened solutions and policies such as correcting tax regulations related to e-commerce business in the Law on e-commerce. Tax Administration No. 38/2019/QH14, along with relevant tax laws such as the Law on Value Added Tax, the Law on Corporate Income Tax, and Personal Income…

Regarding tax collection results from cross-border services, from 2018 to the end of April 2022, Vietnam has collected more than 5,100 billion VND in tax from cross-border digital platform trading units and service providers. gender.

Of which, 2018 is more than 770 billion VND, 2019 is 1,168 billion VND, 2020 is more than 1,143 billion VND, 2021 is more than 1,591 billion VND and the first 4 months of 2022 is more than 437 billion VND.

The major partners are Facebook has paid more than 1,965 billion, Google has paid more than 1,902 billion, Microsoft has paid more than 651 billion.

Regarding Vietnamese organizations and individuals earning income from providing cross-border services and e-commerce business, according to a report of the Ministry of Finance by the end of May 23, tax authorities have collected more than 735 billion VND. from handling violations, combating tax loss.

According to the Ministry of Finance, there are currently many difficulties in tax collection and tax control for cross-border goods and services business, including the inability to identify tax bases.

“In the digital environment, business activities can be carried out through a website present in a certain market area without the need for the physical presence of taxpayers there. Typical for this activity is online advertising and interactive activities through social networking platforms. Therefore, when imposing taxes, it is very difficult for tax authorities to have grounds to calculate tax correctly and sufficiently,” the Ministry of Finance said.

According to the Ministry of Finance, it is currently difficult to control business transactions to manage tax collectors for e-commerce business. Because the subject does not need to go to the store, the shop, the transactions are done through the computer, the server is located abroad, one person sets up many different trading floors…

Regarding cash flow control, the Ministry of Finance affirmed that it is not easy because individuals, organizations and providers use various forms of payment in cash, via bank, electronic payment, peer-to-peer payment. (P2P), cryptocurrency. While payment in the form of cash on delivery (COD) is still widely applied in Vietnam, this also makes it difficult to manage cash flow in e-commerce activities.