The Netherlands-based Uber BV Company has completed its remaining tax arrears payment of 53 billion VND. (Photo: vneconomy.vn) HCM City (VNA) – The Netherlands-based Uber BV Company has completed its remaining tax arrears payment of 53 billion VND (2.26 million USD), immediately after the firm withdrew its petition against the Ho Chi Minh City’s Department of Tax department. According to the deputy general director of the department, his agency in early September 2017 issued a decision on the punishment of administrative violations on tax and collection of over 66.68 billion VND of arrears for Uber BV. However, Uber BV paid only 13.3 billion VND (568,761 USD) and refused to pay the remaining 53 billion VND, which included the value added tax and personal income tax payable by its drivers. It made a complaint to the Ministry of Finance and sued the tax department to the Ho Chi Minh City People’s Court. In late March 2018, Uber BV stopped operations and closed all … [Read more...] about Uber BV completely pays off tax arrears
Paying late taxes
Uber pays back taxes
Uber pays back taxesBy Minh Tam A Uber driver uses the app to connect with his client in this file photo. Uber has finally paid its back taxes - PHOTO: TL HCMC - The Netherlands-based ride-hailing firm Uber International Services Holding B.V. has paid its back taxes after withdrawing its lawsuit against the HCMC Tax Department, noted the department’s deputy director, Nguyen Nam Binh. Binh today, September 10, told The Saigon Times that Uber B.V. on September 4 had paid more than VND53.6 billion (US$2.3 million) in tax arrears and fines due for tax payment delays up to September last year to the Vietnamese State budget. The amount is the remainder of the total VND66.6 billion that the HCMC taxman had earlier ordered Uber to pay. However, the firm still owes an interest sum for the back taxes from September last year to September 4. The HCMC Tax Department will calculate the amount and ask Uber to make the payment in line with the law, Binh added. The VND66.6-billion … [Read more...] about Uber pays back taxes
Uber dispute ends as firm pays back taxes, fines
By Le Chi  September 10, 2018 | 03:53 pm GMT+7 A HCMC taxman has confirmed that ride hailing firm Uber has paid all its outstanding dues. Nguyen Nam Binh, deputy director of the HCMC Tax Department, told VnExpress that the Netherlands-based ride hailing firm has paid VND53 billion ($2.3 million) in back taxes and fines. In September 2017, the department asked the Vietnamese branch of Uber International to pay VND66.68 billion ($2.91 million) in back taxes and fines. Uber did not agree with this demand and only paid VND 13.3 billion. The company complained to the Ministry of Finance that it should not be subject to certain taxes under Vietnam’s agreement on double taxation avoidance with the Netherlands. However, the Ministry of Finance issued an official reply, which rejected Uber’s argument. In response, the company filed two lawsuits against the Ho Chi Minh City Tax Department. On August 17, Uber withdrew its lawsuit over HCMC’s demand for $2.3 … [Read more...] about Uber dispute ends as firm pays back taxes, fines
Liquidation of a Vietnamese entity—critical tax exposures
The liquidation of a Vietnamese legal entity is a lengthy and complicated process in which the final tax audit involves a lot of effort from the dissolving entity. This article is to provide a list of key and common issues, which are frequently challenged by the tax authorities during a tax audit upon dissolution for the enterprises’ perception and compliance in order to mitigate the risks of additional tax liabilities, penalties, and interest on late tax payment. There is a lot to consider when liquidating a company, with tax issues a major issue General procedures of liquidating a company The voluntary dissolution procedures of a company include the following steps with relevant parties and regulatory authorities: Resolution on dissolution to be passed by investors, disclosed to relevant stakeholders and announced publicly in the newspaper; Terminating contracts (with customers, suppliers, landlord, etc.) and liquidating assets; Settling liabilities in accordance … [Read more...] about Liquidation of a Vietnamese entity—critical tax exposures
Forgiving tax debts must be done transparently
A recent proposal by the Ministry of Finance to clear over VND26.5 trillion (US$1.16 billion) of tax arrears, accounting for more than a third of all tax arrears and irrecoverable fines, has raised public concern about the fairness and transparency of handling tax debts. The finance ministry’s statistics revealed that the total amount of tax debt, late payments and fines under the ministry’s management exceeded VND73 trillion by the end of 2017. The amount of such funds under the management of the customs authority was more than VND5.4 trillion. Over VND35.5 trillion, or half of total tax debts owed to both customs and the finance ministry, was deemed irrecoverable. Facing a heavy burden of rising outstanding tax arrears and irrecoverable fines, the finance ministry has proposed to free and eliminate tax arrears for a number of select groups. The ministry plans to free tax debts – meaning it would temporarily cease collection of tax and fines for late tax payment … [Read more...] about Forgiving tax debts must be done transparently
Ho Chi Minh City gives Uber 10 day ultimatum to pay back taxes Info Alert Alert Chia sẻ bài viết qua e-mail
The tax department of Ho Chi Minh City has given Uber an ultimatum to pay VND66.68 billion (US$2.95 million) in back taxes in the next ten days after the company has failed to comply with earlier requests. Netherlands-based Uber B.V., which oversees the ride-hailing app’s operations in Vietnam, was first requested to pay the sum in September after the municipal taxman completed an inspection into the company’s operations in the southern hub. The unpaid taxes include VND10.3 billion ($453,744) worth of wrongly declared taxes, nearly VND51.48 billion ($2.27 million) worth of tax arrears and a fine of more than VND4.9 billion ($215,859) for late payment. However, Uber has completely ignored the requests and failed to pay any part of the demanded back taxes. The company later filed a petition against the tax claim to Vietnam’s Ministry of Finance, claiming it had fulfilled its tax duties in the Netherlands in accordance with a treaty against … [Read more...] about Ho Chi Minh City gives Uber 10 day ultimatum to pay back taxes Info Alert Alert Chia sẻ bài viết qua e-mail
Thousand billions in lost tax from foreign enterprises
Massive revenue without having to pay taxesThe Ho Chi Minh City Department of Taxation has recently issued an ultimatum for Uber B.V Netherlands Co., Ltd. to pay VND66.68 billion ($2.90 million) in tax arrears within 10 days of December 13.Previously, in September, the taxation department asked Uber B.V to pay the tax arrears which included personal and corporate income tax, withholding tax, and value-added tax (VAT), as well as late payment fines. However, Uber B.V refused to pay, arguing that the Double Taxation Avoidance Agreement between Vietnam and the Netherlands gives them exemption.In another case, Le Thi Ai Lien, representative of Saigon Mui Ne, said that the company signed a co-operation contract with international booking site Booking.com. According to regulations, Booking.com will have to deduct a part of its benefits (including profit from business activities in Vietnam) for Saigon Mui Ne so that it can pay corporate income tax (CIT). However, Booking.com … [Read more...] about Thousand billions in lost tax from foreign enterprises
HCMC determined to tax Uber
HCMC determined to tax UberMinh Tam By Minh Tam - The Saigon Times Daily HCMC - The HCMC Tax Department is seeking to collect taxes from Uber, the operator of the taxi-hailing app, though Uber has shown no signs of cooperation. Tran Thi Le Nga, deputy director of the HCMC Tax Department, told reporters last week that in late November 2015, the department requested Uber International Holding B.V. headquartered in the Netherlands to file and pay taxes for the service. The department said Uber has business ties with Uber Vietnam, as indicated by registration fees used to open accounts for the app applicable to Uber customers and fees for cancellation of the service. The fees have been transferred to the account of Uber International Holding B.V. in the Netherlands. Therefore, the company must be governed by Vietnam’s corporate income tax and value-added tax laws. Because the company has not paid any tax for Vietnam, the HCMC Tax Department has required it to pay the taxes from … [Read more...] about HCMC determined to tax Uber
Ho Chi Minh City gives Uber 10 day ultimatum to pay back taxes
The tax department of Ho Chi Minh City has given Uber an ultimatum to pay VND66.68 billion (US$2.95 million) in back taxes in the next ten days after the company has failed to comply with earlier requests. Netherlands-based Uber B.V., which oversees the ride-hailing app’s operations in Vietnam, was first requested to pay the sum in September after the municipal taxman completed an inspection into the company’s operations in the southern hub. The unpaid taxes include VND10.3 billion ($453,744) worth of wrongly declared taxes, nearly VND51.48 billion ($2.27 million) worth of tax arrears and a fine of more than VND4.9 billion ($215,859) for late payment. However, Uber has completely ignored the requests and failed to pay any part of the demanded back taxes. The company later filed a petition against the tax claim to Vietnam’s Ministry of Finance, claiming it had fulfilled its tax duties in the Netherlands in accordance with a treaty against … [Read more...] about Ho Chi Minh City gives Uber 10 day ultimatum to pay back taxes
Booking.com obligated to pay taxes
This was the conclusion of the Binh Thuan Department of Taxation, answering the proposal of Saigon Mui Ne Resort asking its partner Booking.com to either pay tax or the tax department to refund Saigon Mui Ne’s taxes paid instead of Booking.com, according to newswire Vnexpress.According to Le Thi Ai Lien, representative of Saigon Mui Ne, the company signed a co-operation contract with the Booking.com international booking site. According to regulations, Booking.com will have to deduct a part of its benefits (including profit from business activities in Vietnam) for Saigon Mui Ne so that Saigon Mui Ne can pay corporate income tax (CIT). However, Booking.com refused, claiming it was exempt, based on the Double Taxation Avoidance Agreement between Vietnam and the Netherlands.Regarding Saigon Mui Ne, Booking.com’s refusal to deduct a part of its benefits for CIT to Saigon Mui Ne will impact the company’s revenue. Due to the available listed prices, the company cannot … [Read more...] about Booking.com obligated to pay taxes