Tuesday, 19 Dec 2017

Grab Vietnam erases the suspicion of "overstating taxes paid"

Updated at Monday, 04 Dec 2017, 13:45
The Hanoitimes - Leader of Grab Vietnam confirms again about its amount of taxes paid duirng period of 2014-2016.
Regarding the information that Grab Vietnam has just paid a few billion for taxes, Mrs. Nguyen Thu An, Communication Director of Grab Vietnam, confirmed that according to the announcement No. 14393 / TB-CCT-KK, KTT & TH of Taxation Bureau in District 10, Ho Chi Minh City on November 27, in the first 10 months of 2017, Grab has paid a total tax amount of more than 142 billion VND to the State budget."
According to Mrs. An, as the results of the three-year audit in 2014-2016 period, published in the regular press conference at the end of October by the General Department of Taxation, Grab Vietnam has fulfilled all of its tax obligations from 2014 to 2016.
"This is the best proof for all our efforts to comply with Vietnam tax policies. Our tax payment amount to the State budget has always been impressively increased." said the Communication Director of Grab Vietnam.
Illustration photo
Illustration photo
In addition to carrying out its tax obligations, within the pilot framework, Grab Vietnam also provides support to its shipping partners in monthly tax declare and payment. This coordination mechanism has been assessed by Grab to provide a great support for the State's tax administration and tax loss prevention.
Thanks to the automatic and transparent transaction control system using the technology and software licensed by the tax authorities, Mrs. An said, the company has completely automated the issuance of electronic value added invoices to customers and issued personal income tax deduction declaration to the partners annually in accordance with the law.
According to Zingnews,  during his working visit to Vietnam on Nov 21, Hooi Ling Tan, co-founder of Grab, revealed that in the ten months of this year, Grab paid VND140 billion (~$6.16 million) to the Vietnamese budget and emphasised that it complies with its tax obligations to support Vietnam to develop public infrastructure as well as public services.
However, Dang Duy Khanh, deputy director of the Inspection Division under the General Department of Taxation (GDT) then said that in reality, Grab’s tax payments are far less than VND140 billion ($6.16 million) and that the figure mentioned by Tan was unfounded.
Earlier on October 27, the GDT revealed that both Grab and Uber operated with massive losses in Vietnam. In particular, despite being one of the biggest ride hailing service firms in Vietnam, Grab incurred an accumulated loss of VND938.26 billion ($42.65 million) in the 2014-2016 period.
An official of GDT's Inspection Division said that Grab collected a total revenue of VND1.75 trillion ($79.77 million) in the period and paid VND9.53 billion ($433,181) in taxes.
Previously, as requested by GDT, the Ho Chi Minh City tax agency inspected Grab’s payments between 2014 and 2016. Accordingly, Grab accumulated VND2.28 billion ($103,909) in tax arrears.
Furthermore, the Hanoi Taxi Association gave voice to suspicions that Grab might be involved in tax evasion after the company published a revenue of VND192 billion ($8.45 million) and a massive loss of VND443 billion ($19.49 million) in 2016. Grab has only paid VND5.8 billion ($255,270) in tax in 2016. However, a representative of Grab denied this information.
Grab started operations in Vietnam in February 2014 and has chartered capital of VND20 billion ($909,090).
The Ho Chi Minh City Department of Transport revealed that by the end of September, there were 25,000 under nine-seat cars working in the ride hailing networks of Grab and Uber, more than double the total of traditional taxis that only reach 11,000 vehicles
Lien Ha
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