Grab refuses to shoulder the transfer tax after its deal with Uber, despite the Ho Chi Minh City Department of Taxation’s requests.

Grab's acquisition of Uber's operations came with unexpected issues. 

The representative of Grab Vietnam told Tuoi Tre Online that the firm submitted the documents relating to the transfer deal to the tax department. Grab and consulting units carefully studied the laws of the countries where Grab acquired Uber’s stake, including Vietnam. Thus, Grab affirmed that the transaction complies with regulations.

Regarding Uber’s $2.33 million tax arrears, Grab refused to pay as Uber affirmed that it will resolve this tax obligation with the authorities by itself.

“Our deal with Uber only consisted of buying its assets as well as a number of its partner contracts once it withdraws from Vietnam, and it excluded Uber’s legal status in Vietnam.”

At present, Uber and its consulting unit are negotiating with the authorities the details of the firm’s tax obligation in Vietnam, thus Grab Vietnam refused to comment on this issue.

The Vietnam Competition Authority (VCA) under the Ministry of Industry and Trade has investigated the deal between Grab and Uber, after finding signs of violations of the Competition Law. The authority’s move came after it joined a working session with Uber and Grab.

Notably, the representative of Grab failed to provide evidence to support their previous claim that after the merger the market share of Grab will remain below 30 per cent, which is not a monopoly in Vietnam.

Accordingly, the investigation will last for 30 days after the decision was issued on April 13.

VIR