Technology firms like Facebook and Google that provide cross-border services in Vietnam have seen a jump in tax payable in Vietnam of 24 percent year-on-year, according to Vietnam’s General Department of Taxation. From the 106 cross-border firms registered to pay taxes, Vietnam collected VND 6.23 trillion or US$253.8 million.
Cross-border service providers that do not have an office in Vietnam have been required to pay tax under Vietnam’s Foreign Contractor Tax regime since 2021. Of note, most of these firms are actually required to open local offices per the Law on Cyber Security, however, few of them have with foreign firms in local offices set to “bear stricter supervision and satisfy more requirements,” according to the Ministry of Information and Communication.
See also: Foreign Contractor Tax in Vietnam 2024