Grab Vietnam is subject to further investigation as the local competition watchdog has insisted on Grab violating the competition law when it took over Uber.
Netherland based Uber B.V Co., Ltd. has agreed to pay all of its tax arrears equivalent to the amount of $2.4 million to Ho Chi Minh City Department of Taxation after the ride hailing app left Vietnam.
At the recent semi-annual meeting of the taxation sector, Tran Ngoc Tam, Head of the Taxation Department of Ho Chi Minh City admitted that they are coping with difficulties in Uber's tax collection as the company had sold all of its business operation in Vietnam to Grab.
The Competition and Consumer Protection Department (CCPD) under the Ministry of Industry and Trade considers launching a formal investigation into the acquisition of Uber in Southeast Asia including Vietnam by Grab, after announcing the preliminary results are presenting the sign of breaching antitrust law on May 16.
Days after Singapore began a probe into the deal between Grab and Uber under anti-competition scrutiny, the Philippines and Malaysia said that they will look into it on similar concerns.
Due to the wave of technology that Uber and Grab brought into Vietnam, FUTA Bus Lines – Phuong Trang Inc (FUTA) decided to pour VND2.2 trillion (roughly $100 million) in a future ecosystem.
On March 26, Grab officially announced that all of Uber’s motorcycle riders and taxi drivers in Vietnam would work for the former from this April.
The Ho Chi Minh City People’s Court has decided to suspend Uber B.V.’s lawsuit against the Ho Chi Minh City Department of Taxation, allowing the Tax Department to resume coercive enforcement measures to collect over VND53 billion (US$2.3 million) of Uber’s unpaid taxes.
The coercive enforcement measures to collect over VND53 billion (US$2.3 million) of Uber’s unpaid taxes have been halted after the HCM City Department of Taxation (Tax Department) received the court’s temporary urgent decision.
In case Uber fails to pay VND67 million (US$3-million) in tax within 10 days since the date of receiving written notification from HCM city Department of Taxation, it will be enforced to pay the tax and named on media.
The Ministry of Finance (MoF) has rejected the Netherlands-based Uber International Holding BV’s complaints about the decision to collect VND67 billion (nearly US$3 million) in tax arrears in a statement sent to the US-ASEAN Business Council.
Mai Linh Bike, brand of motorbike taxi service of Mai Linh Group is officially just launched in three big cities namely Ha Noi, Da Nang and Ho Chi Minh city (HCMC) to compete with GrabBike, and UberMoto.
Vinasun taxi company announced its revenue of only VND547 billion (more than US$24 million) in the third quarter of 2017, equivalent to 46 per cent of the same period last year.
New ride-hailing apps such as Uber and Grab are coming under criticism from traditional taxi companies in Vietnam, who claim that tax policies give them preferential treatment.
