Facebook to charge 5 pct tax on Vietnam ads

Dat Nguyen Wednesday | 05/25/2022 11:24

Woman holds smartphone with Facebook logo in front of a displayed Facebook's new rebrand logo Meta in this illustration picture taken October 28, 2021. Photo by Reuters/Dado Ruvic

Facebook parent Meta will charge a 5 percent value-added tax on all Vietnamese advertisements starting June 1 after assuring the government it will fulfill its tax obligations.

Meta executives last week told Prime Minister Pham Minh Chinh that the company would register and pay tax as a foreign contractor doing business in Vietnam.

Authorities have been calling for properly taxing tech giants like Meta and Google, pointing out they account for around 70 percent of the online advertisement market but use various means to evade tax.

They taxed cross-border platforms a total of VND5 trillion ($218.5 million) between 2018 and last year.