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Overseas online booking companies required to pay added tax in Vietnam

Staff Writer |
Overseas-based online room reservation companies will be required to pay five percent of the value added tax and five percent of corporate income tax of total sales in Vietnam.

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This is according to the Vietnam Ministry of Finance (MoF) on Thursday.

The ministry has decided so after Vietnam-based booking company Vntrip's executive director Le Dac Lam raised accusation of tax evasions on its foreign counterparts at the end of 2016.

"When a customer pays $100, companies like Agoda gets $20 of commission. However, they do not have to pay any taxes in Vietnam," said Lam, adding that the government may lose millions of U.S. dollars of tax every year.

The MoF has guided the local tax departments to fulfill the tax procedures for these oversea based enterprises, reported local Tuoi Tre (Youth) online newspaper on Thursday.

The tax will be obtained through local hotels and hostels that have contracts with the overseas-based companies, said the MoF.

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