Google surprises world by talking for international tax framework

After coming under fire across the globe for tax evasion, Google finally raised its voice about the issue.

However, contrary to the forecasted objection, the tech giant’s representative said that it completely agrees that there is need for an international tax framework on multinational companies.

Google surprises world by talking for international tax framework
Will Google really obey its global tax obligations?


Google’s vice chairman Karan Bhatia most recently published on its website www.blog.google, “Corporate income tax is an important way companies contribute to the countries and communities where they do business, and we would like to see a tax environment that people find reasonable and appropriate.”

"We hope governments can develop a consensus around a new framework for fair taxation, giving companies operating around the world clear rules that promote sensible business investment," said Bhatia.

Based on what he said, Google will do its best to obey tax obligations in many countries. However, its performance in the future remains questionable.

Specifically, despite the Law on Cybersecurity, which requires the establishment of a representative office, being in force for more than six months, Google keeps ignoring the plan of opening branches in Vietnam.

The fact that Google does not have branches or representative offices is what allowed to dodge tax in Vietnam for so long. According to the Ministry of Finance's (MoF) report, in 2016-2017, Facebook and Google only paid VND120 billion ($5.28 million) in tax in Vietnam via their partners, including advertising agencies and Vietnamese businesses directly purchasing their services.

This is a minuscule amount compared to their huge income in the local market. According to the latest data published by market research company ANTS, in 2018 Vietnamese firms spent $550 million on online advertising, of which Facebook took up $235 million, Google $152 million, and the remaining $150 million was divided among local advertising firms.

Over the past time, many countries have made strong efforts to collect taxes from Facebook and Google.

 

Specifically, the government of the UK announced a drastic change to the way Silicon Valley tech giants would be taxed.

The UK will issue a 2 per cent tax rate on the revenue tech giants make from UK users, estimating that it could raise up to £400 million ($508.5 million) a year starting from 2020.

In every country, these cross-border platforms are a real challenge for the sustainability and fairness of the national tax system.

The rules have not kept pace with changing business models, and it is clearly not sustainable or fair that digital platform businesses can generate substantial value in the UK without paying tax. VIR

Hoang Van

Google smart-speaker sales spike after Vietnamese language included

Google smart-speaker sales spike after Vietnamese language included

The shops selling Google Home Mini and Home Hub confirm that the demand for the products has increased by 3-4 times after it began supporting Vietnamese language.

Vietnam exerts pressure on Google’s YouTube advertisers

Vietnam exerts pressure on Google’s YouTube advertisers

The Ministry of Information and Communications (MIC) has ordered tens of domestic and foreign brands to not advertise on video clips that contain anti-State propaganda on YouTube, a video-sharing platform.

Google Assistant in Vietnamese is smart, efficient, and even recognizes accents

Google Assistant in Vietnamese is smart, efficient, and even recognizes accents

Google has recently officially added Vietnamese to the list of languages receiving support from Google Assistant.

 
 
 
 
 
Leave your comment on an article

OR QUICK LOGIN