UBER is one of the most widely accepted transport companies in the taxi market, recommended by thousands of users who are satisfied with the different types of UBER they offer. Also for his recognized track record in paying taxes.
Where UBER Taxes – Where UBER Pays Its Taxes
If you pay UBER taxes, where does the money go? It is the question that many people ask us lately and in this article we will give you an answer; stay here and watch UBER do it.
Where is UBER taxed?
UBER is an American company, but its tax activity headquarters are in the Netherlands. But of course, it has offices in different parts of the world. N or However, in the Netherlands receives a very flexible tax treatment is as a tax haven, that’s where UBER pay your taxes.
As other companies do, UBER transfers most of its income to other countries, where the jurisdiction of the tax regime is much more advantageous to them, since they collect corporate tax in a more reduced way.
The intellectual rights that UBER has in the Netherlands include trademarks and licenses that the American company has in 63 different countries, since company taxes charge a maximum of 25% , when the normal percentage is up to 30%, saving at least 5 % tax.
This obviously helps lower the bill that UBER must pay in tax, which is a true tax haven.
Why don’t companies pay tax in their own country?
Now you may wonder or have doubts about what a tax haven really is; Or also why do many companies choose to have their tax addresses there ?; Well, that’s what we’re going to answer next.
Tax havens are jurisdictions, countries or territories where a particularly favorable tax regime is applied for certain types of financial institutions or companies; with the condition that they do not reside in the country.
A financial regime with a low tax burden is also applied to them , or in other words, a reduced collection of the main taxes.
They are places where financial, banking or monetary supervision or regulations are almost nil. In addition to this, they maintain strict banking secrecy, where they agree not to reveal or exchange information of any kind to other jurisdictions; since they do not care where the money comes from , only that it is deposited in the accounts of those territories.
Which in turn brings them many benefits, such as boosting the development of the economy, a better quality of life for users and those who have become UBER members . Therefore, it is a reciprocal benefit from the company to the jurisdiction or territory where such paradise operates.
If you pay UBER taxes, where does the money go?
The fact that UBER’s tax domicile is located in the tax haven of the Netherlands has generated much controversy; just in case this has a legal basis. But the truth is that yes , it is totally legal, as the main priority of its business is to put the passenger in contact with a company of drivers licensed by VTC.
Simply put, what it does is keep some profit by charging a percentage of the rate paid by the client, money that goes to this paradise and the other remains in the country where the taxi service originated.
In short, UBER works like an electronic service company; not necessarily transportation. And although he has had to endure the loss of large sums of money, his objective is to earn money in the future , with the dividend injections from which he feeds.
Around the world, UBER has been increasing the use of its service, reaching more and more countries; Therefore, little by little it has also increased its profits, thanks to the fact that it has its fiscal domicile in places that give it facilities when it comes to paying taxes. If you liked this article and it has been helpful, leave us a comment to encourage us to make more quality content like this.
