Vietnam mulls measures to collect tax from Uber, Coca-Cola, Big C

The taxation agency has not received documents concerning the tax declaration and payment for transferring Big C Vietnam from French Casino Group to Thai Central Group.

The Thai conglomerate announced it had taken over Big C at the price of US$1.14 billion in late April. 

Under Vietnamese laws, involved parties must submit documents on tax declaration no later than the 10th day after the day the two sides reach agreement on the transfer.

An official of the General Department of Taxation (GDT) said GDT may not allow Big C to be transferred if involved parties delay the tax declaration and payment. Dinh Trong Thinh, a high-ranking economist from the Finance Academy, thinks that it is necessary for the taxation body to consider provisions in transfer contracts signed between Big C’s owners and find out who inherited the accounts receivable and payable.

If there is no such provision, the taxation body needs to ask the new owner of Big C to retain a sum of money when paying tax.

If the new owner refuses to do this, Vietnam would have to seek support from France, the host country of Big C with which Vietnam has a cooperation agreement.

If necessary, Vietnam can bring the case to the international court.

However, Thinh believes that the owner of Big C would not be foolish enough to evade tax, because it will not have the right to do business if Vietnam forces Big C to shut down.

Uber taxi has been present in Ho Chi Minh City since July 2014, but the issues related to the tax payment and business conditions of the type of business remain unclear.

According to Nguyen Quang Tien from GDT, the individuals who joined Uber taxi belong to registered cooperatives or businesses. Uber will periodically release a report about the individuals who provide services and their incomes, so that businesses and cooperatives can calculate tax.

However, Tien said many individuals providing Uber taxi do not belong to institutions  and they operate without licenses to avoid tax.

GDT has released a document on tax obligations and tax payment procedures.

Tien went on to say that the taxation body has checked incomes via banks and has made a proposal on this issue to the Ministry of Finance. 

Regarding Coca-Cola, the drink manufacturer has angered the public because of suspected tax evasion.

Thinh said other countries still can collect tax from Coca-Cola. 

“They tax on Coca-Cola’s revenue instead of profit,” he said.