The HCMC Tax Department is seeking to collect taxes from Uber, the operator of the taxi-hailing app, though Uber has shown no signs of cooperation.
Tran Thi Le Nga, deputy director of the HCMC Tax Department, told reporters last week that in late November 2015, the department requested Uber International Holding B.V. headquartered in the Netherlands to file and pay taxes for the service.
The department said Uber has business ties with Uber Vietnam, as indicated by registration fees used to open accounts for the app applicable to Uber customers and fees for cancellation of the service. The fees have been transferred to the account of Uber International Holding B.V. in the Netherlands.
Therefore, the company must be governed by Vietnam’s corporate income tax and value-added tax laws.
Because the company has not paid any tax for Vietnam, the HCMC Tax Department has required it to pay the taxes from the date of customers starting to use the service in Vietnam until December 10 last year. The company was asked to directly file and pay the taxes or do it through an authorized organization or individual in Vietnam at the tax authorities of localities where there are Uber vehicles.
However, Nga said Uber in the Netherlands has not sent any representative to work with the department. The department also requested a representative of Uber in HCMC to work over taxes but the firm said it has no relation to taxi operators and Uber in the Netherlands.
Nga said the tax authorities will continue to coordinate with relevant agencies to find solutions. The department has collected a list of enterprises and individuals associated with the Uber service and forwarded the list to local authorities to find ways to collect taxes from them.
The tax authorities will work with banks to follow money transfers to the accounts relating to Uber.
Tran Ngoc Tam, director of the HCMC Tax Department, said the General Department of Taxation will work with Uber after the Lunar New Year holiday (Tet). Tam said it is important to prove legal grounds for enterprises to implement their tax obligations.
For Google and Facebook, Nga said the department found it easy to collect taxes by requiring enterprises, which primarily place ads on Google or Facebook, to make tax deductions for advertising spend on these websites.
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