Vietnam launches website to tax foreign tech giants

The tax authorities have set up a website to collect taxes from foreign companies to make it easier for tech giants like Facebook and Google to do their homework.

The portal of the General Directorate of Taxation of Foreign Suppliers (etaxvn.gdt.gov.vn) went online on Monday to allow companies to declare their tax and track their payments.

Until now, foreign companies paid their taxes through a third party, but now they can pay directly, said Nguyen Van Phung, director of the Large Business Tax Agency.

By filling in their details on the website, businesses could see how much they have to pay and their bank account details, he said.

“Foreign companies can now pay taxes at any time, even from an airplane.”

As a general rule, foreign companies are required to pay value added tax and corporation tax quarterly. Phung said many foreign companies leave the burden of taxes to their Vietnamese partners, he added. There are at least 64 foreign service providers active in Vietnam, according to tax authorities.

Vietnam taxed cross-border platforms like Google and Facebook for a total of VND5 trillion ($218.53 million) in 2018-21. Authorities have called for properly taxing tech giants like Facebook and Google, pointing out that they account for around 70% of the online advertising market but evade taxes.

Edwin S. Wolfe