Uber and Grab subject to tax in Hanoi

Uber and Grab, which have offices in Ho Chi Minh City and other cities and provinces, will have to pay taxes to the Hanoi People’s Committee.   Hanoi is trying to even the field between Uber and Grab and traditional taxi firms This was one of the contents of the document that the Hanoi People’s Committee submitted to the Government Office on the management of Uber and Grab under the pilot programme called “Application of information technology in supporting the management and connection of commercial passenger transportation by contract,” according to newswire Zing. According to the document, this proposal is to ensure transparency and equality in tax obligations among passenger transport services providers. Besides, Hanoi proposed the Ministry of Transport (MoT) to add a legal framework and improve authorities’ management capacity over electronic transactions and electronic trading in order to control the operations of transport units under this pilot programme. Hanoi also proposed the government to build regulations to identify ride-hailing application providers as transport firms and impose similar management measures as for traditional taxi firms. Accordingly, Uber and Grab will have to have a transport trading licence for automobiles, register their fleet as well as declare fares as traditional taxi firms. Furthermore, Hanoi also asked ride-hailing application providers to register their e-commerce platform licence. In addition, ride-hailing application providers will have to publicise the number of vehicles in their fleets, the routes, the working hours of drivers, as well as the operation areas so that the authorities can control and… [Read full story]


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