Facebook neglects tax obligations for $1 billion revenue in Vietnam

The information was disclosed by Minister of Information and Communications Nguyen Manh Hung at the National Assembly’s questioning session on Friday.

The minister said that taxing Google was necessary. Recently the ministry has been coordinating with related agencies including tax authority, police, State Bank of Vietnam to have closer watch on this activity and have plan to control cross-border payment transactions as well.

"The transactions are made via Facebook via credit cards, so the bank can control this cash flow. The bank will block when detecting violations," Minister Hung said.

Thanks to the method, several tax avoiding cases have been discovered recently. Tax authorities are instructing declaration and payment.

Since early 2018, Hanoi Tax Department has collected information from organizations and individuals generating cash Google Play, Apple Store, YouTube, announcing a list of 47 organizations with $3.4 million revenue. In addition, 526 individuals generated a total revenue of $12.6 million.

Minister Hung said that these social networks have not implemented data storage in Vietnam under the Law on Cyber ​​Security.

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