How to pay taxes when making money from Youtube, Facebook, Google?

Cases where tax must be paid

According to Circular 92/2015/TT-BTC and Decree 126/2020/ND-CP, regulations on personal income tax and value added tax for individuals and businesses related to online business activities such as Youtube, Facebook, Google are stipulated as follows:

- Subjects subject to personal income tax and value added tax: Resident individuals, including individuals, groups of individuals and households, engaged in production and business of goods and services in the fields and industries of production and business as prescribed by law must pay personal income tax and value added tax.

- Online business, personal income tax and value added tax: Income from sources such as Youtube, Facebook, Google and other online money making platforms are considered business activities, subject to personal income tax and value added tax. This applies to individuals engaged in this activity.

- Individual responsibility: Individuals participating in online business must be responsible for declaring and paying personal income tax and value added tax corresponding to the income from these platforms.

- Signing contracts with partner companies: Individuals signing contracts with partner companies of Google, Facebook and similar platforms in Vietnam will not have to declare taxes themselves as before.

Instead, the partner organization (company) will take on the responsibility of filing and paying taxes directly on their behalf. This simplifies the tax process for these individuals and shifts the tax burden to the partner organization.

- Receiving money directly from online platforms: Domestic individuals receiving money directly from Google, Facebook or similar platforms must declare taxes themselves.

This means that they must calculate, declare and pay personal income tax and value added tax corresponding to the income from these online activities. This calculation must comply with specific regulations and tax rates.

- Enterprises and corporate income tax: For enterprises with revenue from online business activities, the applicable tax is corporate income tax. Enterprises must declare and pay taxes according to regulations on corporate income tax.

Specifically, businesses need to declare and pay corporate income tax according to regulations applicable to businesses. These regulations aim to ensure transparency and fairness in tax collection for online business activities. At the same time, they also help to effectively manage taxes for individuals and businesses participating in these platforms.

Details of tax payable

For businesses, when there is revenue from online platforms, they will comply with regulations on corporate income tax and value added tax. The corporate income tax rate is 20% of total revenue minus expenses. This requires businesses to carefully calculate to determine the amount of corporate income tax to pay. In addition, businesses must also pay value added tax at a rate of 10%.

For individuals with income from Youtube, Facebook, Google. Individuals with income from online platforms below 100 million VND/year do not have to pay personal income tax and value added tax. This helps reduce the tax burden on those with low income from these activities.

Individuals earning over VND100 million/year from these platforms are subject to tax regulations. The tax rate is 5% VAT on revenue and 2% personal income tax on revenue. This requires them to calculate and pay taxes on their income from online activities.

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