Facebook businesses must pay five percent revenue tax in VietnamStaff Writer | July 10, 2017
Small and home-based business owners who use the Facebook platform to sell products and have revenue of more than VNĐ100 million ($4,500) per year will be taxed at five percent.
Asia With revenue of over $4,500 each year
“With revenue of over $4,500 each year, a business on Facebook paying nearly VNĐ2 million ($90) for tax is acceptable,” Nguyễn Thái Sơn, a taxation consultant, said in the Thanh Niên (Young People) newspaper.
The tax level for those who have the same revenue in a traditional business is around four times higher, nearly VNĐ8 million ($360), he said.
In early June, the HCM City and Hà Nội Taxation Departments sent 13,400 notifications to Facebook businesses and over 1,000 businesses contacted with tax officials in HCM City.
“To reduce tax losses from online business, tax authorities have woked with Facebook, Google and Apple Store to have e-commerce accounts, worked with banks regarding revenue and worked with police to have a list of those who haven’t paid tax,” Lê Thị Thu Hương, deputy head of the HCM City Taxation Department said.
“The taxation department will collect information from different sources and publish names of organisations and individuals who evade taxes, as well as request relevant authorities to close any e-commerce websites if they do not pay tax,” she added.
Hương also said that individuals who have online business in social media will be provided a taxation registration and code. ■