Uber Vietnam Rejects Rumors of Operation Suspension

Tuan Minh

07:06 25/09/2017

BizLIVE - Uber Vietnam’s CEO has voiced that the ride-hailing app is operating normally despite claims of tax arrears.

Uber Vietnam Rejects Rumors of Operation Suspension

Uber has helped change traveling habits in Vietnam. Photo: Tech in Asia

Dang Viet Dung, CEO of Uber Vietnam, has affirmed that the company is operating normally, refuting rumors that the ride-hailing app was forced to halt operation until its tax arrears are cleared, local media reported.
“The information [of Uber suspending operation] shared on social media is totally groundless. We remain normally operational in Vietnam and are planning to expand,” Dung said.
After having inspected Uber Vietnam’s operations in the period of from its inception in the country to June 2017, Ho Chi Minh City’s tax authority on September 23 dictated that Uber had to pay 66.68 billion dong ($2.9 million) in taxes.
The amount includes 10.3 billion dong in undeclared taxes, 26.3 billion dong in value-added tax, 14.6 billion dong in personal income tax that Uber Vietnam was assigned to pay on behalf of drivers, and 10.5 billion dong in corporate income tax.
Regarding this issue, Dung said that Uber Vietnam and its parent firm based in the Netherlands are working with the municipal tax authority and related parties to “find a common ground and optimal solutions.”
After entering Vietnam three years ago, Uber has somehow transformed Vietnamese people’s transport culture in the country’s two biggest cities – Hanoi and Ho Chi Minh City – by offering discounts and conveniences, thanks to a tech-savvy and young population. Together with its Malaysian rival Grab, Uber has caused traditional taxi operators to face financial difficulties and massive layoffs.