The taxman has drawn up a plan for taxing Uber’s Internet taxi service and will submit it to the Ministry of Finance for approval, according to a report on the Government web portal at chinhphu.vn.

Value added tax and corporate income tax to be imposed on Uber would be 3% and 2% respectively based on its revenues, according to the General Department of Taxation.

The department has also worked with Uber International Holding B.V to determine sources of the Internet taxi firm’s revenues, including account registration and trip cancellation fees charged on passengers via credit card, and consumers’ payments by Visa Card, MasterCard and AMEX.

Uber takes 20% of transportation service revenues while the rest goes to local transport firms.

International Holding B.V would be responsible for signing contracts, collecting fares and sharing revenues with transport firms while Uber Vietnam would be allowed to handle supporting and marketing activities to expand its network and support driver training.

According to Michael Brown, Regional Manager for South East Asia and Australia at Uber, the company is committed to fulfilling tax obligations in Vietnam, says the report.

Uber has been triggering controversies in the country, especially when conventional taxi operators voiced strong objections to its operation.

Prime Minister Nguyen Tan Dung has asked the Ministry of Transport to work with the HCMC government to look into a proposal by the HCMC Taxi Association to consider when to officially legalize Uber’s operations in Vietnam.

The transport ministry is working on how to manage this type of business. Minister of Transport Dinh La Thang previously also suggested legalizing Uber’s taxi services in the country.

SGT/Chinhphu