VND4.1bn tax arrears bill for man profiting from online business
Nguyen Nam Binh, vice head of HCM City Department of Taxation, said on August 1 that they had collected VND4.1bn (USD164,000) in tax arrears and fines from a local man that earned VND41bn from Facebook and Google ads.
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He promised to VND3bn in tax arrears and a VND1.1bn (USD44,000) administrative fine. The tax arrears were detected when the Department of Taxation ordered banks to check on incomes from Google, Facebook and YouTube that haven't deduced taxes. Binh said they would continue checking other cases of huge online incomes.
Another individual in HCM City also earned VND30bn online but hasn't paid taxes. The Department of Taxation said he was no longer living at the HCM City address so the case was transferred to the Department of Taxation in Quang Nam where the individual originally came from.
Binh said the Law on Tax Administration required all businesspeople to pay tax. He went on to say that both Facebook, Google, YouTube as well as local individuals and firms that use the services hadn't fully complied with the tax regulations.
The authorities will zero in on Facebook accounts that are the most active and have large incomes. Those who earn less than VND100m (USD4,400) a year online must pay a business licence tax. Those with over VND100m of annual incomes must pay additional VAT and personal income tax.
According to the Department of Taxation, Facebook, Google and YouTube incomes at four banks are in the range of VND500bn (USD20m).
Last year, the Taxation Department has collected VND9.1bn (USD400,100) in tax arrears from a Facebook account that sells cosmetics online.
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