[Round-up] Taxman Checks Uber’s Taxes, Urges Big C Owner to Pay $160 Million Transfer Tax

Tuan Minh

17:39 23/06/2016

BizLIVE - The Vietnamese tax authorities is looking into the legal basis for taxing Uber and Uber taxi drivers in order to prevent tax evasion. They are asking Central Group and Casino Group to pay $160 million in transfer tax as the transaction was announced more than a month ago.

[Round-up] Taxman Checks Uber’s Taxes, Urges Big C Owner to Pay $160 Million Transfer Tax

The Vietnamese tax authorities is looking into the legal basis for taxing Uber and Uber taxi drivers in order to prevent tax evasion.

Deputy PM Meets with Coca-Cola Executive Vice President
The Vietnamese government would continue perfecting its institutions, policies and promoting a transparent and fair business environment for businesses, both local and foreign, Deputy Prime Minister Trinh Dinh Dung told Cocal-Cola’s Executive Vice President Irial Finan on June 22, according to the Vietnam News Agency (VNA).
The Vietnamese government firmly requires enterprises to obey Vietnamese laws and hopes they will make contributions to local communities, the deputy prime minister added.
Irial Finan said the firm hoped to become a model firm in Vietnam on observing regulations on environmental protection and tax and contributing to community.
Hanoi’s CPI in June Rises for Six Consecutive Month
The consumer price index (CPI) in Hanoi continued to go up in June, the sixth consecutive month of growth, VNA reported, citing the municipal Statistics Office.
Nine out of 11 groups of commodities posted price increases with the biggest rise seen in transportation services, mainly due to the price hike in petrol and oil.
Seminar Highlights Vietnam-Germany Economic Prospects
A seminar featuring the prospects of Vietnam-Germany economic ties was held in Berlin on June 22, attracting managers, economists and over 300 Vietnamese and German businesses, according to VNA.
Participants discussed Vietnam’s competitiveness and ability to attract German small and medium-sized enterprises, saying that Vietnam and Germany could cooperate in mutually-beneficial and supplementary fields.
Over $5 Billion for Transport Infrastructure in Central Highlands
The Ministry of Transport has planned to invest over 115 trillion dong ($5.17 billion) in developing transport infrastructure in the Central Highlands region in the next five years, according to the Steering Committee for the region.
The investment capital will be used to construct and upgrade national roads and key provincial roads with high-travel demand, especially those connecting regional localities and linking the Central Highlands with the south central coastal region.
Vietnam Posts Trade Surplus of $1.36 Billion Year to June 15
Vietnam recorded a trade deficit of $284.6 million in the first fortnight of June, causing the trade surplus to narrow to $1.36 billion in the year to June 15, according to data of the General Department of Vietnam Customs.
On June 1-15, the country’s exports increased 17.12% from a month earlier to $7.05 billion and its import value rose 11.3% to $7.33 billion.
Foreign Firms in Vietnam Build up Trade Surplus
Foreign-invested enterprises operating in Vietnam earned a surplus of $777.6 million in their external trade in the first half of June, bringing their surplus to $9.1 billion in the year to June 15.
They raked in $52 billion from export in the six-month-and-a-half period, rising 9.16% year-on-year, while spending $42.94 billion on imports, down 2.81%.
90% of Consumers in Vietnam Use Smartphones: Nielsen
Nine out of ten consumers in Vietnam (91%) own smartphones as personal ownership, compared to 82% in 2014, according to the Nielsen Vietnam Cross-Platform Insights Report 2015.
Besides, Pay TV/cable TV (79%), laptops (78%) and desktop (75%) are the top devices owned by Vietnamese digital consumers. Level of ownership for connected TV, smart TV and tablets remain quite high (over 43%).
The report also reveals that consumers in Vietnam on average spend 24 hours and seven minutes online per week, an increase of almost nine hours from 2014.
The authorities of the Vietnamese central province of Ha Tinh have given a go-ahead for AirCraft Company Vietnam-Germany GBR to build a solar farm with an initial capacity of 50 megawatts (MW).
The move came after AirCraft Company Vietnam-Germany GBR conducted an examination in Trieu Thach anh Trieu Son communes where it found suitable conditions to place the solar plant.
The General Department of Taxation under the Vietnamese Ministry of Finance has asked Casino Group and Central Group to pay an estimated 3.6 trillion dong ($160 million) in transfer tax corresponding to the transaction of the Big C chain made nearly two months ago.
The agency threatened to block the $1.04 billion deal if the involved parties refuse to pay up.
Ambassador of the State of Israel to Vietnam Mme. Meirav Eilon Shahar shares her views with BizLIVE on the potential and future of the Vietnam-Israel relations, particularly in agriculture, trade and startup.
She noted that Israeli private companies will increase their investment in Vietnam once the bilaterail free trade agreement (FTA), which is under negotiation, takes effect.
Watchdog Checks Uber’s Taxes
A representative from the Vietnamese tax watchdog said it was important to clarify the legal basis for taxing Uber and Uber taxi drivers in order to prevent tax evasion, reported VNA.
Nguyen Quang Tien, director of the General Department of the Taxation’s Department of Tax Reform and Modernization, said on Tuesday that the performance of tax payment obligations by Uber’s taxi drivers must now be checked first while Vietnam needed to have policies to better tax the increasingly popular car hailing service for the income it received from its operations in Vietnam.