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For two years, Vietnamese businesses paid 120 billion VND in taxes on behalf of Google and Facebook

For two years, Vietnamese businesses paid 120 billion VND in taxes on behalf of Google and Facebook 5

For two years, Vietnamese businesses paid 120 billion VND in taxes on behalf of Google and Facebook

Information about Google and Facebook’s tax payment was given at the comment session on the Cyber Security Law project of the Conference of Specialized National Assembly Deputies.

Accordingly, the Ministry of Finance’s report said that because these two companies do not have official representatives in Vietnam, tax authorities only manage taxes on income arising from partners and advertising agencies.

Initial statistics show that in 2016, domestic companies paid nearly 46.9 billion VND in taxes on behalf of Google (including YouTube) and Facebook (value added tax was about 25.3 billion VND; income tax was about 25.3 billion VND).

Besides the fear of tax revenue loss from these units, the need to protect national sovereignty with electronic data was also raised when the drafting agencies discussed the revised Cyber Security Law.

The requirement for these companies to place servers in Vietnam when providing telecommunications services is no longer included in the latest Draft Cyber Security Law.

Up to now, Google and Facebook do not have official representatives in Vietnam.

According to the National Defense and Security Committee, such regulations will meet the requirements of protecting national sovereignty over electronic data and handling situations and acts in cyberspace that violate national security.

According to statistics from the Ministry of Public Security, by January 2018, Google had rented nearly 1,800 servers, Facebook had rented 441 servers from Vietnamese businesses to store data in Vietnam.

Besides, when there is stored data, preventing and removing information that is against the Party and the State and violates Vietnamese law will be more feasible, for example, the case of using the Internet to gamble trillions of dong that happened.

According to the National Defense and Security Committee, the proposed revised regulations will create a legal corridor for ministries and functional agencies to strictly manage the activities of cross-border service providers when doing business in Vietnam.

Previously, some foreign Ambassadors in Vietnam shared concerns with the regulation that foreign businesses providing telecommunications and Internet services must place servers in Vietnam.

Hoang Thuy

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