The Department of Radio, Television and Electronic Information under the Ministry of Information and Communications has requested Netflix to review and remove movies and TV programs with content that violates the sovereignty and laws of Vietnam.
On August 25, the local media and social networking community discovered and was dissatisfied with false information about Vietnamese sovereignty in the movie "Put your head on my shoulder" provided by Netflix in Vietnam. On August 28, the Department of Radio, Television and Electronic Information issued a document asking Netflix to comply with the laws of Vietnam when providing television services in the country.
This is the second time that the agency has reminded Netflix of the matter. Netflix did not seriously comply with the requirements of the Vietnamese authorities in a dispatch dated 20/7/2020 on the same issue, the Department of Radio, Television and Electronic Information said.
In its latest document, the agency required Netflix to seriously review and remove films and TV shows that have content violating the sovereignty and laws of Vietnam and to stop using Vietnamese subtitles in movies and TV programs provided by Netflix to users in Vietnam.
If Netflix continues to violate the Vietnamese law, the Vietnamese authorities will consider appropriate measures according to the provisions of Vietnamese law.
According to newswire Yonhap, the National Tax Service in South Korea suspects Netflix Services Korea paid its US headquarters a large sum of phantom management consulting fees so that the Seoul office would report a deficit and avoid paying corporate taxes.
Suspicions about Netflix's tax evasion have been around for some time. Last year, it was a big question when Netflix hit record profits of up to $845 million in 2018, but did not pay any taxes in the US.
In Indonesia, Netflix is taxed 10% VAT on sales. Under the new regulations, foreign businesses selling products and services in Indonesia with sales of at least 600 million rupiah or having at least 12,000 users each year must pay VAT. A Netflix spokesperson said the company would comply with the host country's regulations.
Netflix is the most popular movie and TV show service in the world today. Based on the subscription model, users pay a monthly fee through their account to be able to access Netflix movies. Netflix offered customers in Vietnam a free trial for the first month. Vietnamese authorities have not officially commented on whether or not Netflix is complying with tax policies in Vietnam.