Grab Taxi’s accumulated losses reach US$41 million
By Trung Ngoc
October 31, 2017 | 05:00 AM GMT+7
Grab Taxi Co., Ltd (Grab Taxi)'s accumulated losses have reached VND398 billion (equivalent to US$41.36 million), 47 times higher than its charter capital, according to the General Department of Taxation (GDT).
Traditional taxi firms have been worried about their market share since Uber and Grab taxi entered Vietnam. Photo: anninhthudo.vn
Grab Taxi has operated in Vietnam since February 2014 with charter capital of VND20 billion (roughly US$881,834).
Speaking at the press conference on October 27, Dang Duy Khanh, Deputy Director General of Inspection Department under the General Department of Taxation said Grab Taxi has earned VND1.7 trillion (roughly USD74.8 million) from 2014 to 2016 and paid VND9.5 billion (approximately US$ 418,871) in taxes. After the inspection, HCM City Department of Taxation has collected nearly VND2.3 billion (equivalent to US$101,410) in tax arrears.
Grab’s competitor Uber, which has been inVietnamsince 2014 has earned a total VND2.7 trillion (roughly USD118 million) and paid VND77 billion (equivalent to US$4.4 million) in taxes. However, the tax authority still had to collect VND67 billion (approximately US$2.95 million) in tax arrears.
Khanh explained that Uber misunderstood Document No. 1882 issued in 2016 by Ministry of Finance regarding corporate income tax. Uber only paid the taxes after the document was issued, however, Khanh said the taxes for the past three years must be collected.
Both Uber and Grab Taxi announced losses due to too much promotion, discount programmes and subsidies to drivers, Khanh added.
Many traditional taxi firms have complained about unfair treatment related to tax policies in their competition with app-based taxi services.
The operation and legal status of Uber and Grab Taxi are different from each other. Grab Taxi is considered a local business. Uber is a foreign firm that does not have any official branch in Vietnam so it has to pay outstanding tax, according to the General Department of Taxation.
For Koen Soenens, Sales and Marketing Director at DEEP C, empathy is a compass that guides major deals, the way a leader builds a team, and the ambition to create a sustainable industrial zone that carries a Vietnamese identity.
Taseco Land has shifted its listing to HOSE and introduced a new upward-pointing arrow logo - a visual statement of its strategy to raise capital, expand its land bank, and strengthen its standing in Vietnam’s real estate sector
Located in the heart of Ho Chi Minh City, SAP Labs Vietnam is the second SAP Labs Network hub in Southeast Asia, following Singapore and is one of 20 countries that have SAP Labs globally.
A new partnership between EY and the Vietnam-Singapore Board Forum (VSBF) is set to strengthen ESG capabilities for Vietnamese businesses, helping shape more sustainable business models.
With strategic deals and strong policy alignment from the Vietnamese government, Excelerate Energy aims to anchor Vietnam’s LNG ambitions in the region.
