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.