Ministry Ticks Tax Declaration and Payment Plan for Uber

According to a document sent to tax offices by the Ministry of Finance, tax obligations to the Netherlands-based Uber B.V will be executed in accordance with provisions applicable to organisations and individuals with business operations in Vietnam or with income in Vietnam. Specifically, the rates are 3 per cent for value added tax (VAT) and 2 per cent for corporate income tax (CIT), which Uber has to pay for its revenue generated in Vietnam. “Uber Netherlands B.V authorizes Uber Vietnam Ltd or a third-party organisation to declare and pay value added tax and corporate income tax to the State Budget at the above rates on taxable revenue earned by Uber Netherlands B.V under the contract signed with organisations and individuals that provide transport business,” read the guidance of the Ministry of Finance.

 

Organisations who have signed contracts with Uber Netherlands B.V are obliged to declare and pay value added tax and corporate income tax on revenue earned under the contract. A representative from the Ministry of Finance stressed that the above revenue “does not include the turnover of the Uber Netherlands B.V” Likewise, individuals who have signed contracts with Uber Netherlands B.V are obliged to declare and pay taxes on revenue earned under the contract which does not include the turnover of the Uber Netherlands B.V.” The rates are 3 per cent of VAT and 1.5 per cent of personal income tax. However, the directive document of the Ministry of Finance stated that “Uber Vietnam Ltd or a third-party organisation authorised by Uber Netherlands B.V shall declare and pay taxes in lieu of individuals and provide information to tax authorities as stipulated by the law.” The General Department of Taxation said Uber now has three income items, including registration fee to open an account, trip cancellation fee and fares paid by customers. Accordingly, Uber shall transfer 80 per cent of fares to its partners and take 20 per cent of service charge.