Ministry rejects Uber’s complaints about tax arrears
The Ministry of Finance rejected the Netherlands-based Uber International Holding BV’s complaints about the decision to collect VND67 billion , or nearly US$3 million, in tax arrears in a statement sent to the US-ASEAN Business Council.
Ministry rejects Uber’s complaints about tax arrears. (Photo: AFP/VNA) |
Uber earned revenues through transportation services provided by its partner drivers, counted as permanent establishments, in Vietnam for a period of 6 to 12 consecutive months. Therefore, it is subject to the foreign contractor taxes in compliance with the current regulations and the Vietnam-Netherlands Double Taxation Avoidance Agreement, the ministry said in the statement.
Uber entered Vietnam in June 2014. Since then, tax collection for the ride-hailing service application has remained controversial as this was the first service of its kind in the country, triggering worries about the efficiency in collecting taxes as well as the unfairness to other transport firms in the country.
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 VND2.77 trillion (US$122.1 billion) and the firm has paid approximately VND76.9 billion (US$3.38 million) in taxes.