Uber agrees to pay $2.4 million tax arrears despite leaving

The tax arrears includes a principal debts of $2.3 million plus the penalty for late tax payment of approximately $128,000.

Previously, Ho Chi Minh City Department of Taxation (HDT) requested Uber to pay them an administrative fine of around $3 million in September 2017. At that time Uber only paid nearly $600,000 and still owed them a total amount of over $2.4 million.

Thus, HDT decided to take coercive measures to deduct money from Uber’s bank account. Nevertheless, the process of tax collection from Uber was extremely difficult as the company had no bank account in Vietnam, especially together with its leaving from Vietnam’s market.

Disagreeing with the HDT’s decision, Uber filed a lawsuit to the People’s Court of Ho Chi Minh City.

Additionally, leaders of the Ministry of Finance previously affirmed that when Grab acquired Uber, they were responsible for paying this tax amount instead of Uber.

Nevertheless, according to Grab Vietnam, the responsibility to pay tax lies with Uber as a part of the acquisition deal, Uber pledged to be responsible for resolving all issues related to outstanding tax liabilities in Vietnam.

Even though Grab does not bear any responsibility for Uber tax obligations in Vietnam, they still worked closely with Uber to clarify Uber’s tax obligations in Vietnam and in just nearly five months, Uber decided to withdraw its lawsuit and agreed to resolve all of its remaining debts in Vietnam.