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.