Uber will have to pay tax if it is licensed for legally operating in Vietnam, said a senior state official from the Ministry of Finance on Wednesday.
If being licensed for legally operating in Vietnam, Uber will have to pay 5 percent income tax on total revenues it gain from the local market, said Deputy Minister of Finance Do Hoang Anh Tuan, citing General Taxation Department’s calculation.
Accordant to the General Taxation Department under the ministry, Uber International BV, which enjoy 20 percent of the total the payments of passengers for using Uber services, will have to pay 5 percent value added tax and 5 percent corporate income tax on total revenues it gains from the local market.
For the local transport firms directly contracting with Uber International BV, they will have to pay tax worth 80 percent of their earnings from using Uber service through banks.
In addition, those businesses will also be charged with some other kinds of fees and all other kinds of taxes arising in Vietnam that the state agency cannot collect from Uber, said the department.
General Taxation Department said this is a new business model in Vietnam, and is expecting that the new model will continue to develop into the fields such as tourism, hotels, and airlines.
To manage earnings arising from those services, the department proposes the service providers to work with the functional units of the Ministry of Industry and Trade and the State Bank of Vietnam for supports in verifying the transactions of non-cash payment or via intermediary payment services.
Uber, which connects passengers and drivers via a smartphone app, has grabbed national headlines as it has won over many passengers for its fast and cheap rides, all while facing legal challenges in Vietnam. It started offering services in the Southeast Asian country on July 31, with car rides now available in both Hanoi and Ho Chi Minh City. Uber customers use the app to request rides and track their reserved vehicle’s location, with information including the fare and estimated arrival time made known before they get in the car. The complete fare is automatically billed to the customer’s credit card at the end of a ride. |
Đăng ký: VietNam News