Vietnam To Tax Uber's Internet Taxi Service

by Mary Swire, Tax-News.com, Hong Kong

30 December 2014

The General Department of Taxation (DGT) has been considering how Uber's internet taxi service should be taxed in Vietnam, and its proposals are to be sent to the Ministry of Finance for approval.

It is being recommended that a three percent value-added tax and a two percent corporate tax should be imposed on the total income of Uber International Holding, which will be responsible for signing contracts, the collection of fares, and sharing revenues with transport firms in Vietnam.

The DGT has been negotiating with Uber International, which would charge a 20 percent fee out of collected fares and the remainder would be distributed amongst the local taxi businesses. Its local operation, Uber Vietnam, will only be responsible for client support and marketing activities to expand its service network.

Uber currently has a registration certificate, but does not yet have permission to operate in the country. As in other countries, Uber's operations would be controversial, especially as its new business would be in competition with traditional taxi operators, as the company instead receives booking requests through a smartphone application.

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