Following Google, Meta and Tiktok, applying a 10% tax rate for advertising services in Vietnam from July 1, 2025

Recently, the Ministry of Finance of Vietnam officially announced the application of a 10% contractor tax on major advertising platforms such as Meta (Facebook, Instagram), Google (Google Search, YouTube) and TikTok.

According to the provisions of Circular 80/2021/TT-BTC, this tax rate is applied to foreign suppliers that do not have a permanent establishment in Vietnam but have revenue from e-commerce activities, digital platforms and services arising in the territory of Vietnam.

How will advertising businesses be affected?

The application of a 10% tax rate means that advertising costs will increase accordingly.

Platforms such as Meta, Google and TikTok will be responsible for declaring and paying taxes on behalf of users in Vietnam.

Opportunities and challenges in the new context

Challenge:

• Marketing costs increase: Putting pressure on business budgets, especially SME groups.
• Requires higher efficiency optimization: Advertisers need to allocate budgets more intelligently and measure them more closely.

Opportunity:

• Create a more equitable business playing field between domestic businesses and cross-border suppliers.
• Promote methodical and transparent investment, limit unfair competition.
• Improve content quality and marketing strategy, increasing the need for qualified experts and agencies.

Recommendations for businesses in Quarter 3 - Quarter 4/2025

To adapt effectively, businesses should proactively take the following strategic steps:

1. Restructuring the marketing budget: Evaluate the effectiveness of each channel, prioritize investment in platforms that bring high ROI.
2. Invest in quality content: Create creative, inspiring campaigns and optimize natural virality.
3. Target optimization: Use data to determine the right customer profile, avoid wasting budget.
4. Promote multi-channel marketing strategy: Combine paid advertising and natural marketing forms (SEO, Social Organic, Email...).
5. Enhance measurement and analysis: Closely monitor performance to make fast and accurate decisions.
6. Building a long-term brand: Focus on creating core values ​​and building a sustainable brand identity to overcome all fluctuations.

The application of a 10% contractor tax is a step forward in building a more transparent and fair business environment in Vietnam.

Viet Duong