Tax revenue from tech giants soars to over $339 million

As of early October, foreign suppliers have paid over VND8.6  trillion (over $339 million) in taxes, marking a nearly 26% increase compared to the same period last year.

Notable technology giants contributing to this revenue include Google, Meta (Facebook), Microsoft, TikTok, Netflix, and Apple.

The General Department of Taxation (Ministry of Finance) recently reported that 116 foreign suppliers have registered for tax payments through its online portal, an increase of 5 compared to the last update. This includes prominent names like Google, Meta (Facebook), Microsoft, TikTok, Netflix, and Apple.

Since the online portal for foreign suppliers became operational in March 2022, the cumulative tax revenue from these companies has reached over VND20.17 trillion (nearly $796 million).

According to the tax authorities, major suppliers like Meta (Facebook), Google, Microsoft, TikTok, Netflix, and Apple currently hold approximately 90% of the market share in revenue generated from cross-border e-commerce services in Vietnam.

Other e-commerce platforms like Temu, Shein, and 1688 are currently selling products in Vietnam. These platforms are also subject to tax declaration and payment regulations applicable to foreign suppliers.

During a government press briefing on November 9, Deputy General Director of the General Department of Taxation, Mr. Mai Son, emphasized that foreign suppliers are responsible for registering, self-calculating, declaring, and paying taxes directly through the General Department of Taxation's online portal on a quarterly basis.

Despite self-declaration, Mr. Son pointed out that in cases where suppliers report inaccurate revenue, the tax authorities will use cross-reference data to verify the information. They will then request companies to fulfill their obligations and carry out audits if there are signs of fraud or tax evasion.

Furthermore, he mentioned that Temu, the owner of the e-commerce platform, reported zero revenue for the third quarter of 2024. However, it is expected that starting from October 2024, the platform will be required to declare taxes and include them in the following quarter.