Harsh measures to be taken to collect US$3-million tax arrears from Uber

According to HCM city Department of Taxation, in September 2017, the Department investigated Uber and found many false declarations, which leads to the additional tax collection of VND67 million (US$3-million). Therefore, the Department issued a decision on sanctioning administrative violations of tax and collecting tax arrears from Uber.

Then, Uber International Holding B.V filed its complaint to the General Department of Taxation and the Ministry of Finance (MoF) on the grounds that Uber had fulfilled their tax obligations under Double Taxation Avoidance Agreement signed between Vietnam and the Netherlands (the Agreement).

However, after more than three months, MoF confirmed that Uber B.V is not entitled to tax exemption under the Agreement as it has generated income in Vietnam from its ride-hailing services on a network of local partner drivers.

According to Dang Duy Khanh from the General Department of Taxation, Uber’s total revenue from 2014 to June 30 this year was estimated at more than 2.77 trillion VND (US$122.1 million) and the firm has paid approximately 76.9 billion VND (US$3.38 million) in taxes.

Leader of Ho Chi Minh city Tax Department said: "Uber file its claim since it thinks it would not pay tax in Vietnam under the Agreement. However, the collection of tax arrears from Uber is reasonable and in compliance with the Agreement”.