Personal Tax Regulations for income from Youtube, Facebook, Tiktok

In these dynamic times for young people, in the age of making money 4.0, everyone is looking for ways to make money through social networking channels such as: youtube, google or facebook and especially in recent years, tiktok. And when you have income from these channels, what question do you ask? That is: do I need to pay taxes when making money in this way? The answer is “YES”, through this article Smart Solutions For Business Company Limited(S4B Vietnam) will guide readers on tax declaration services for individuals with income from Youtube, Google, Facebook, Tiktok as follows.

1. What is the tax status for people with income from Youtube, Facebook, Google, Tiktok in 2023?

According to the Ministry of Information and Communications, in Vietnam by the end of 2020, there were about 15,000 individuals using YouTube channels with the monetization function enabled. However, only 30% of them (corresponding to 5000 channels) are managed by YouTube channels in Vietnam.

Thus, we can clearly see that the total tax paid by individuals with income from making money from Google, Facebook, and Youtube channels is much lower than the total tax payable according to their obligations.

Social media income tax: Earned money from X (Twitter), Instagram, YouTube or other social media sites?

>>>Read more: Fully package tax compliance services businesses in VietNam

2. Regulations on paying income tax from Youtube, Facebook, Google, Tiktok in Vietnam

Tax declaration obligation:

“According to Clause 5, Article 7 of Decree 126/2020/ND-CP guiding on tax administration:

  • For individuals who sign contracts with partner companies of Google, Facebook, Tiktok… in Vietnam, they will not declare taxes themselves as before, but the organization will declare and pay on their behalf.
  • For domestic individuals who receive money directly from Google, Facebook, Tiktok…, the individual is obliged to declare their own taxes.
  • For businesses with revenue from Google, Facebook, Tiktok…, declare tax according to corporate income tax regulations.

3. Tax rates on income from Youtube, Facebook, Google, Tiktok

3.1 For Businesses

When a business receives revenue from the Youtube, Facebook, and Google platforms, it is required to declare and pay 20% corporate income tax (TNDD). The calculation is as follows: Total revenue – costs.
And 10% value added tax (VAT) as prescribed in Clause 6, Article 1 of the Law on Corporate Income Tax amended in 2013 and Article 8 of the Law on VAT 2008.

3.2 For individuals

Individuals whose income from social networking channels such as Youtube, Facebook, Google… is less than 100 million/year do not have to pay tax.
Individuals with income over 100 million/year must pay tax at the rate of 5% VAT/taxable revenue and 2% personal income tax/taxable revenue.
In which: taxable revenue is the amount of money individuals receive from Youtube channels, Facebook, Google…

Do Creators Pay Taxes on Money Earned?

4. Deadline for declaring and paying taxes

The tax payment deadline is divided into 2 cases:

  • If an individual pays by the declaration method, the deadline for submitting a monthly tax declaration is the 20th day of the month following the month in which the tax liability arises. For quarterly purposes, the latest is the last day of the month.
  • If an individual chooses to pay by the method each time it arises, the deadline for submitting the tax declaration is the 10th day from the date the tax liability arises.

5. Why should you use tax declaration services for individuals with income from Youtube, Google, Facebook, Tiktok?

In fact, many YouTubers and TikTokers with millions of followers have “huge” income every year but “forget” to pay taxes. Recently, many individuals have been discovered and collected by tax authorities after many years. For example, in the first 6 months of 2022, the Ho Chi Minh City Tax Department handled 38 people with income from Google with tax arrears, fines and late payment fees amounting to 169 billion VND. Among them, a person who had a “huge” income from Google but “forgot” to pay taxes was collected by the Regional Tax Department of District 7 – Nha Be and fined 31 billion VND. Or an individual in Ho Chi Minh City has declared income arising in 2020 and 2021 from software production activities and has revenue from advertising on Google of 434 billion VND and must pay taxes up to 30.3 billion VND. (excluding late payment interest and fines)…

We have more than 15 years of experience specializing in tax consulting and business establishment for all provinces and cities nationwide, committed to doing it with the most suitable fee, in the fastest time, without trouble, without risk. Committed to supporting and accompanying you and your business throughout the operation process

Above is Smart Solutions For Business Company Limited (S4B Vietnam)’s sharing about tax declaration services for individuals earning income from YouTube and Tiktok. Hopefully this is also the answer that many other customers are looking for. If any customer has any questions that need to be answered, please contact us immediately to receive the fastest answer. Best regards!

Smart Solutions For Business Company Limited (S4B Vietnam)

  • Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
  • Tel: + 84 24 3974 4181
  • Email: service@s4b.com.vn

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