Foreign service providers fulfill tax obligations in Vietnam
Hanoi (VNA) – Since the portal for tax payment of cross
border activities was launched on March 21 this year, 36 foreign service providers have registered,
declared and paid taxes through it, heard a webinar held by the Government Portal on September 29.
Those providers include six big names - Meta (Facebook), Google, Microsoft, TikTok, Netflix, and Apple - which together account for
90% of the e-business on cross-border digital platforms in Vietnam in terms of revenue. They paid hundreds of
millions of USD in taxes to the State budget, according to a representative from the General Department of Taxation.
Cross-border foreign businesses are those without permanent
establishments in Vietnam and carry out e-commerce and other services with
businesses and individuals in Vietnam.
Earlier,
foreign businesses had to rely on an agent or third party to declare and pay
taxes in the country.
The Ministry of
Industry and Trade reported that Vietnam’s e-commerce revenue was estimated at
13.7 billion USD in 2021, up 16% annually and accounting for 6.5% of the total
retail revenue.
Prof. Hoang Van Cuong,
member of the National Assembly’s Committee for Finance-Budget and Vice Rector
of the National Economics University said Vietnam is rated among four Southeast
Asian countries in terms of cross-border tax management via tax declarations on
the portal.
A representative from
the General Department of Taxation said foreign service providers worked
closely with tax agencies to learn about tax policies and offer suggestions to
them to improve tax policies and tax management tools./.