In September 2017, the Ho Chi Minh City Tax Department asked Uber to pay VND66.86 billion (US$2.91 million) in back taxes and fines. The ride-hailing firm later refused to pay the amount in subject and complained the issue to the Minister of Finance (MoF). 

The MoF issued official reply rejecting Uber’s argument, leading to an ultimatum of the tax department on December 13, 2017 asking Uber to pay the tax amount in subject within 10 days. 

However, Uber only paid VND13.3 billion (US$572,079) after the deadline had passed and filed a lawsuit against the Ho Chi Minh City Tax Department. 

On August 17, Uber withdrew its lawsuit over tax authority’s demand for US$2.28 million in back taxes and fines.

Previously, Grab on March 26 confirmed its acquisition of Uber’s Southeast Asia operations for an undisclosed sum, effectively ending the latter’s presence in the region since 2014.

In response to Uber’s tax arrears, Grab Vietnam said it did not bear responsibility to solve the issue in accordance to the agreement between the two ride-hailing firms. However, in order to support Vietnam’s tax authority, Grab had been working closely with the tax department and Uber to clarify Uber’s tax obligation. 

This was considered one of the main reasons behind Uber’s withdrawal of its lawsuit and paid back taxes and fines.