Grab Vietnam will collect and pay tax on behalf of partners

20:34 | 18/01/2018 Regulations Follow english.haiquanonline.com.vn on

VCN – According to Grab Vietnam, from 1/1/2018, based on the guidelines of the Tax authorities, Grab Vietnam will implement the declaration, payment and collection of tax that is based on the percentage of partner’s revenue, on behalf of GrabBike and GrabExpress drivers.

grab vietnam will collect and pay tax on behalf of partners

The declaration, collection and payment of tax obligations only apply to GrabBike and GrabExpress partners whose turnover is required to pay a tax of over 100 million VND per year. Source: Internet

Accordingly, Grab Vietnam will deduct 4.5% of tax duty (including 3% of VAT and 1.5% personal income tax) on 80% of revenue received by the partner (equivalent to 3.6%).

With a support fee for a partner based on the number of trips or sales, Grab will deduct 1%; With other support fees of non-revenue from Grab, Grab will deduct 10% personal income tax.

In 2016 and 2017, Grab Vietnam has used the company's budget to support its motorbike drivers for tax compliance. The declaration, collection and payment of tax obligations from January 1st 2018 is carried out in accordance with the Document No. 1531/TCT-TNCN dated 20/4/2017 on personal income tax policies for individuals participating in the modes of GrabBike and GrabExpress activities, Document No.5729 / CT-TTHT of HCM City Tax Department dated 19/6/2017 on guiding the payment of personal income tax.

According to Grab Vietnam, the declaration, collection and payment of tax obligations only apply to GrabBike and GrabExpress partners whose turnover is required to pay a tax of over 100 million VND per year. This tax obligation shall be collected by Grab Vietnam and remitted to the State Budget in accordance with the provisions of law.

Up to now, Grab is the first and only company to help collect and pay tax for motorbikes, and to work with partners to fulfill tax obligations for the state budget.

Previously, the Ministry of Finance has completed the inspection of tax compliance activities of Grab. Accordingly, Grab doing business in Vietnam since February 2014, has legal capital of 20 billion VND but has accumulated losses 938.2 billion VND. According to Grab reports, the total revenue of their business in 2014, 2015 and 2016 is 1,755 billion VND. The tax amount declared and paid to the state budget was more than 142 billion VND.

By Thùy Linh/Thanh Thuy

Tags:

Grab Vietnam GrabBike GrabExpress tax payment pay on behalf personal tax income grab drivers State Bugdet tax authorities

Related News

MoF proposes extension to tax payment deadlines in 2023

08:49 | 12/02/2023 Finance

VCN - The Ministry of Finance is gathering opinions on a draft Decree on extending the deadlines for payment of value-added tax, corporate income tax, personal income tax and land rentals in 2023.

Tax revenue estimated at more than VND165,000 billion in first month

12:32 | 04/02/2023 Finance

VCN - In the first month of 2023, the tax agency estimates to collect VND165,700 billion, reaching 12.1% of assigned target and exceeding 4.4% year-on-year, reported the General Department of Taxation.

Deferred tax payments totaled VND nearly 106 trillion

10:05 | 11/01/2023 Finance

VCN - In 2022, the Ministry of Finance has effectively implemented the socio-economic recovery and development program with the deferral of tax payment and tax exemption and a reduction of nearly VND200 trillion.

Destroyed goods in bonded warehouses not required to declare for tax payment

14:20 | 04/12/2022 Regulations

VCN – According to the regulation, if goods are preserved and the enterprise destroys them in bonded warehouses and complies with the condition as prescribed, enterprises shall not declare for tax payment of import duty and VAT.

Latest News

Enterprises have the right to pre-determine HS codes

09:55 | 06/04/2023 Regulations

VCN - At the dialogue conference between Ho Chi Minh City Customs Department and import-export enterprises at the weekend, enterprises raised many problems related to HS code application, and post-clearance audit.

Amendment to Decree 14 to prevent goods congestion at border gates

11:39 | 01/04/2023 Regulations

VCN – When Government Decree No14/2018/ND-CP dated January 23, 2018, is revised to shift the border trade from unofficial-quota trade to official-quota trade to prevent goods congestion at border gates at harvest season or on holidays and Tet, there will be some changes in the management of the border trade.

Notes for businesses on tax policy

13:44 | 31/03/2023 Regulations

VCN - According to experts, some businesses do not understand clearly tax documents and policies, especially new ones, leading to many risks in implementation.

Revising Law on Corporate Income Tax: Promoting resources for socio-economic development

13:43 | 27/03/2023 Regulations

VCN - After a long time of implementation and many changes in reality, it is time to amend the Law on Corporate Income Tax (CIT) to remove difficulties for production and business activities, and open up and promote resources for economic and social development.

More News

Apply 609 preferential export tax lines, 11,526 special preferential import tax lines to implement the CPTPP Agreement

09:33 | 26/03/2023 Regulations

VCN - To enjoy the preferential export tax rates under the Preferential Export Tariff and the Special Preferential Import Tariff of Vietnam implementing the CPTPP Agreement from 2022 to 2027, exported goods must have transport documents and import customs declarations or documents replacing customs declarations showing that the destination is in the territory of the member countries in which the CPTPP Agreement has entered into force, regulated in the scope of Decree No. 115/2022 /ND-CP dated December 30, 2022.

Difficulties in determining samples for testing

09:32 | 26/03/2023 Regulations

VCN – Customs face challenges in determining whether imported food samples for testing are exempt from state inspection for food safety, as well as in identifying which products require registration for announcement purposes.

GDVC instructs application of C/O form D

10:16 | 25/03/2023 Regulations

VCN – ASEAN member states must declare HS code 2022 on Certificate of Origin from April 1.

Goods imported from export processing enterprises must pay tax

09:03 | 24/03/2023 Regulations

VCN - According to the Law on Import and Export Duties provisions, if a domestic enterprise imports products of export processing enterprises, they must pay tax.

Review, perfect regulations on decentralization of public property management

11:55 | 22/03/2023 Regulations

VCN - The Ministry of Finance has sent an official letter to ministries, central and local agencies on improving legal documents under the power for promulgation of ministries, central and local agencies on the management and use of public property.

MoF develops excise tax policy to promote electric vehicle production

17:21 | 13/03/2023 Regulations

VCN – The Ministry of Finance is considering adjusting excise tax rates for some environmentally friendly products in the revised Law on Excise Tax.

Enterprises must submit dossiers and documents to identify authenticity of goods' value

10:09 | 13/03/2023 Regulations

VCN – According to regulations, for customs declarations selected for customs valuation, customs declarants must submit dossiers and documents to identify the authenticity of the declared goods' value.

Removing difficulties in the implementation of VAT policy

15:10 | 27/02/2023 Regulations

VCN - For businesses to understand and strictly comply with the regulations on the declaration of value-added tax (VAT) rate for import and export goods, the General Department of Customs has continuously issued guiding documents, which is considered an important part of bringing policies into practice.

Correcting policy to avoid overlaps in inspection and supervision at land border gates

14:13 | 26/02/2023 Regulations

VCN - Currently, the draft Decree amending and supplementing Decree No. 08/2015/ND-CP dated January 21, 2015 is being submitted to the Government for signing and promulgation of amendments related to customs inspection and supervision procedures for means of transport on exit, entry and transit in the draft Decree that was amended and supplemented to meet the requirements of administrative procedure reform.

Your care

The system has not recorded your reading habits.

Please Login/Register so that the system can provide articles according to your reading needs.

Latest Most read