Many major foreign online service providers such as Facebook, Microsoft, TikTok, and Netflix have directly registered, declared and/or paid taxes online into the Vietnamese budget.

The General Department of Taxation reported that the tax revenue from cross-border goods and services through organisations in Viet Nam declaring and paying on behalf of contractors reached VND5.4 trillion (nearly US$235 million) from 2018 until June 29.

The average revenue is about VND1.2 trillion per year, with the average revenue growth rate at 130 per cent.

Since the portal's opening for foreign suppliers on March 21, many large foreign suppliers have registered to pay corporate income tax and value-added tax directly through the portal.

Up to now, 23 foreign suppliers have registered, declared and paid taxes to the Vietnamese state budget, the total amount of tax paid is about $2.4 million.

For example, with Facebook (Meta), TikTok, and Netflix, the tax amount declared and paid directly on the portal in the first quarter of this year is as follows: Microsoft paid $0.5 million, TikTok VND34.5 billion, Netflix VND7.8 billion. Facebook will pay tax on all revenue (from organisations and individuals) in the second quarter of the year.

The HCM City Tax Department said that with these measures, the tax authorities initially obtained solid results in the fight against budget revenue loss.

Specifically, four commercial banks provided tax authorities with organisations and individuals with income from Google, with a total amount of money received from abroad of more than $52.13 million in the first six months of this year.

Tax authorities have handled 38 individuals with income from Google, with arrears, fines and late payment interest of VND169 billion and three enterprises with arrears tax, fines and late payment interest of VND327 million.

Some tax departments have significant revenues, such as the Ha Noi Tax Department with about VND358 billion, HCM City Tax Department with about VND146 billion, and Da Nang Tax Department with about VND67 billion. 

Source: VNS