Global tech giants pay US$252 million in taxes in Jan-Aug in Vietnam

Foreign service providers like Google, Facebook, and TikTok paid over VND6.2 trillion ($256 million) in taxes in the first eight months of this year, reflecting a 24% increase compared to the same period in 2023.

Major foreign service providers in Vietnam.

According to the General Department of Taxation under the Ministry of Finance, 106 foreign providers have registered to pay taxes online through the department's portal, an increase of 10 companies from the previous month. Google, Meta (Facebook), Microsoft, TikTok, Netflix, and Apple are among the corporations that have filed and paid taxes.

As of August 15, these companies have paid more than VND6.2 trillion ($256 million), marking a 24% rise year-over-year. This amount also represents 125% of the annual forecast.

Since the portal for foreign providers became operational in March 2022, foreign enterprises have cumulatively contributed nearly VND18 trillion ($738 million).

Currently, six companies: Meta (Facebook), Google, Microsoft, TikTok, Netflix, and Apple account for 90% of cross-border e-commerce service revenues in Vietnam.

In related data, the total state budget revenues managed by the tax authorities in the first eight months is estimated at VND1,140 trillion ($46.7 billion), representing 77.2% of the annual target and a 17.9% increase compared to the same period last year. Of the total, 53 localities collected more tax revenue than in 2023, while only 10 reported less.

During the same period, authorities conducted over 38,700 inspections and recommended measures to deal with tax violations of all kinds, involving nearly VND40 trillion ($1.6 billion). Additionally, nearly 12,300 decisions were made on VAT refunds, amounting to more than VND90.5 trillion ($3.7 billion).