UBER is one of the most widely accepted transport companies in the taxi market, recommended by thousands of satisfied users for the different types of UBER they offer. Also for its recognized track record in paying 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 answer it; stay here and see how UBER does it.
Where is UBER taxed?
UBER is an American company, but it is based in tax activity in the Netherlands. But of course, it has offices in different parts of the world. NHowever, in the Netherlands it receives very flexible tax treatment, it is like a tax haven, that is where UBER pays its taxes.
Just as other companies do, UBER transfers most of its income to other countries, where the jurisdiction of the tax regime is of much more advantage because they charge corporate tax in a lower 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 they charge a maximum of 25%when the normal percentage is up to 30%, saving at least 5% tax.
This obviously helps to lower the bill that UBER must pay in taxes, which is a real tax haven.
Why don’t companies pay tax in their own country?
Now you may be wondering or have doubts about what a tax haven really is; or also why many companies choose to have their fiscal domiciles there?; Well, that is what we are going to answer next.
Tax havens are jurisdictions, countries or territories where a particularly favorable tax regime is applied to certain types of financial institutions or companies; provided that they do not reside in the country.
A financial regime is also applied low tax burden, or in other words, a reduced collection of the main taxes.
They are places where there are almost no financial, banking or monetary supervisions or regulations. In addition to this, they maintain strict banking secrecy, where they undertake not to reveal or exchange information of any kind to other jurisdictions; given that they don’t care where the money comes fromonly that it is deposited in the accounts of such territories.
Which in turn brings them many benefits, such as boosting the development of the economy, better quality of life for users and for those who have become UBER partners. for which it is a reciprocal benefit company to 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; for the doubts of if this has legal basis. But the truth is yesit is totally legal, because the business of the same has as its main priority to put the passenger in contact with a company of drivers with a VTC license.
Simply put, what you do is keep some profit by charging a percentage of the rate paid by the client, money that goes to this paradise and the other money remains in the country where the taxi service originated.
In a nutshell, UBER works like a delivery company. electronic service; Not necessarily transportation. And although he has had to bear the loss of large sums of money, he aims to earn money to futurewith the injections of dividends on which it feeds.
Throughout the world UBER has been increasing the use of its service, reaching more and more countries; so little by little it has also increased its profits, thanks to the fact that it has its fiscal domicile in places that give you facilities when paying taxes. If you liked this article and it has been useful to you, leave us a comment to encourage us to make more quality content like this.
