For the first time, Uber pays tax in Vietnam

By Toan Dao   September 15, 2016 | 08:59 pm PT
For the first time, Uber pays tax in Vietnam
An illustration picture shows the logo of car-sharing service app Uber on a smartphone next to the picture of an official German taxi sign September 15, 2014. Photo by Reuters/Kai Pfaffenbach/Illustration/File Photo
The popular service promises to adhere to regulations after the finance ministry announced tax rates in an unmistakably tough move to tackle evasion.

Uber, the popular ride-sharing service, has paid VND241 million ($10,667) in taxes to Vietnam for the first time, after being accused of tax evasion over the past two years and forcing local authorities to take tough actions recently.

The company is working on procedures to pay more taxes, the Vietnam Television news site reported Thursday, quoting a tax official from the Ministry of Finance.

Following a prolonged legal back-and-forth, the finance ministry in a recent regulation ordered Uber International Services Holding B.V. to pay a value added tax rate of 3 percent on its revenue and a 2-percent corporate income tax.

The unit, based in the Netherlands, is responsible for operating Uber services in Vietnam.

It has also been told to pay taxes on behalf of Vietnamese drivers, which includes a 3-percent value added tax and a 1.5-percent personal income tax.

Uber said in a statement on September 12 that it is committed to fulfill its tax obligations in Vietnam.

The company also hopes to soon get the nod from the government to officially, and legitimately, launch its services here.

Uber proposed legal frameworks for providing ride-hailing services in Vietnam in October last year, but the proposal was rejected as the company did not designate a legal entity that would handle contracts with Vietnamese partners.

Vietnam’s Ministry of Transport then asked Uber to revise its proposal. No further action has been taken since.

For now, only Grab Taxi, a Malaysia-based company, and Vietnam’s Vinasun have received permission from local authorities to operate e-hailing services.

Related news:

> Vietnam gets tough on Uber in alleged tax evasion case

Uber lost at least $1.27 bn in first half of year

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