The total amount of tax paid by individuals who have conducted transactions through Google and Facebook platforms during the 2019-2020 period hit some VND 1 trillion (roughly 42.8 million U.S dollars) according to the General Department of Taxation. Vietnamnet has reported.
“This tax is determined based on collected data that Facebook, Google pays directly to individuals or through businesses with advertising activities,” said Dang Ngoc Minh, deputy director of the General Department of Taxation, at press conference. Accordingly, those payees have made tax declarations and payment voluntarily, or been defined by tax agencies.
“The effects of the Covid-19 pandemic have led to changes in traditional business forms,” Dang said. noting that digital business has posted a sharp rise over the year.
Tax policies have profound effects on the operation of international transactions using cross-border services. Therefore, the agency intends to work with consulting and auditing companies to invite platform providers, including Netflix, Amazon, Google and Youtube, to discuss tax obligations and administration methods in the near future.
The department also adopted new regulations No. 126/2020/ND-CP elaboration of the Law on Tax administration, focusing on digital management from Oct. 19, 2020, and plans to issue a number of circulars stipulating the responsibility of parties in tax administration.
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