Uber completes tax payment for Ho Chi Minh City

September 11, 2018 | 20:14
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Uber B.V completed the payment of VND53.3 billion ($2.36 million) in taxes for the Ho Chi Minh City Department of Taxation, dispelling previous worries that the arrears may not be enforceable.

Nguyen Nam Binh, deputy director of the tax department, told zing.vn that Uber B.V has paid off its remaining tax arrears. The representative of Uber B.V and the tax department will arrange a meeting to discuss unfinished problems.

uber completes tax payment for ho chi minh city
After two court cases, Uber decided to pay up

Previously, at the first half meeting of the General Department of Tax on July 20, director of the Ho Chi Minh City Department Tran Ngoc Tam said that the city’s court was working to handle the tax evasion issue, but the likelihood of collecting taxes from Uber B.V was very low.

“Uber B.V is no longer in Vietnam, so the authorities cannot enforce tax compliance. The issue is under the city’s Court, but it is difficult to tell how long this will take,” Tam said.

The tax department could not apply coercive measures to collect VND53.3 billion ($2.36 million) in taxes from Uber B.V because the department was facing a lawsuit from the firm. Even if the department wins the case, the chance of it being able to actually claim the taxes would be very low because Uber had never established a representative office or bank accounts in Vietnam.

However, the dispute was resolved after Uber B.V withdrew the petition in July.

The VND53.3 billion ($2.36 million) tax arrears were the remainder from the VND66.68 billion of fines and tax arrear that Uber B.V was found to owe after the tax department completed an inspection on the firm in September 2017.

As of late 2017, Uber B.V only paid VND13.3 billion ($588,500) of this sum. Since then, the firm has sued the department twice because it claimed that it has no tax obligation in Vietnam in accordance with the Double Taxation Avoidance Agreement between the Netherlands and Vietnam.

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