Since a few months back, we’ve been getting a lot of questions about assume balance of Uber ready vehicles from aspiring Uber Partners that want to start their Uber business.
Being one of the pioneer Uber Partners in Manila (we’ve been operating for about 2 years now), we honestly think that assume balance of Uber ready vehicle is OK for as long as you are fully informed. Kumbaga, alam nyo ang pinapasok nyo. 🙂
Assume balance of Uber ready vehicles have its advantages and disadvantages for both the previous owner and new owner. Kaya para matulungan namin kayo, ito ang mga information at considerations na dapat ninyong malaman if nagbabalak kayong mag-assume balance ng Uber ready vehicle OR kung binabalak nyong ipa-assume balance ang inyong Uber/Grab ready vehicle.
The information in this article are based on our research. We haven’t really tried to assume balance an Uber ready vehicle NOR considered to have our vehicle assumed by someone else. So, if you have done this, we would greatly appreciate if you can share with us your experiences, thoughts and insights in the comments below. 🙂
1. Very Important Consideration: TNVS, Taxes and Liability
As per LTFRB, the TNVS Applicant is the VEHICLE OWNER as reflected in the ORCR.
Ibig sabihin, kung ang Uber/Grab ready vehicle at ang previous owner nito ay nakapag-apply na for TNVS Certification o mayroon nang Provisional Authority or Certificate of Public Convenience, ang nakalagay sa records ni LTFRB ay ang pangalan pa rin ng previous owner.
Even if you’ve already “sold” the car to the new owner via assume balance of Uber ready vehicle, in the eyes of LTFRB, the name appearing in the ORCR as the owner is still responsible and liable for the TNVS operations.
2. So what if the TNVS and the ORCR is still under the previous owner’s name?
Well, you know according to the LTFRB Memorandum, TNVS operators are independent contractors of the TNCs (Uber and Grab), this means the person who is the TNVS Applicant (the name that reflects in the ORCR) is responsible for the business.
This means all the taxes that should be paid by TNVS operations will still be tagged under the TNVS Applicant (that is the name of the previous owner). In case there’s a major accident *knock on wood*, the TNVS Applicant/Operator (the previous owner) will still be liable.
Ibig sabihin, kung pangalan mo ang nakalagay sa ORCR at sa TNVS Application, ikaw pa rin ang may responsibilidad sa TNVS operations (tax at kunsakali may aksidente *knock on wood*) at hindi ang new owner dahil hindi pa nailipat ang ORCR sa pangalan ng nag-assume balance. Hindi na ikaw ang nakikinabang sa TNVS operations, pero ikaw parin ang responsable sa mata ni LTFRB for taxes and liabilites.
Pero kung OK lang naman sa inyo na sa mata ni LTFRB, kayo parin ang may responsibilidad sa TNVS operations, sa tax, at sa potential liabilities, edi wala naman pong problema. Maswerte ang maga-assume balance dahil legally, hindi sila directly responsible sa TNVS business na ina-assume nila.
3. But we have a Deed of Sale of the assume balance?!?
Yes, you may have executed a Deed of Sale between the two parties (the previous owner and the new owner assuming the balance), but according to LTFRB, they will NOT recognize this because they will only recognize the name in the ORCR.
But don’t worry because this Deed of Sale is still valid but only between previous owner and the new owner.
Sa madaling sabi, kung magkaroon ng aberya sa taxes or something sa TNVS operations, ang TNVS Applicant (name in the ORCR) is responsible in the eyes of the government. Ang hahabulin ng BIR at LTFRB ay yung pangalan na nakalagay sa ORCR. Pero dahil may Deed of Sale, pwedeng habulin ng previous owner ang new owner dahil siya na ang nag-assume balance ng vehicle at ng TNVS business.
Nakikita nyo ba ang potential na gulo? 🙂
4. So what is the BEST way to assume balance an Uber ready vehicle?
The safest way is to have the ORCR transferred to the name of the new owner who assumed the balance. You can do this via LTO’s Transfer of Ownership. This is the only way that the new owner’s name will appear in the ORCR and the only way for LTFRB to acknowledge that the new owner is the TNVS Operator.
Once you’re able to do Transfer of Ownership, you can now file for amendment of the TNVS Certifications para mapalitan sa record ng LTFRB. As per the exact procedures of doing this, wala pang binibigay si LTFRB and/or Uber. We’ll publish an article once we get the exact and proper procedures.
5. Pero ang sasakyan ko ay naka-loan/in-house financing pa. Hindi pumapayag ang dealer/bangko na palitan ang pangalan sa ORCR hanggat hindi fully paid. Paano yun?!
Karaniwan sa banks at dealers na hindi pumayag na palitan ang pangalan sa ORCR hanggat hindi fully paid ang sasakyan. In the first place, yun nga mismo ang dahilan kung bakit nagpapa-assume balance na lang.
Maari nyo pong itanong sa dealer or bank kung paano ang proseso para mapalipat ang pangalan sa ORCR ng inyong ipapa-assume balance.
Muli, kung OK lang naman sa inyo na sa mata ni LTFRB, kayo parin ang may responsibilidad sa TNVS operations, sa tax, at sa potential liabilities, edi wala naman pong problema. Maswerte ang mag-assume balance dahil legally, hindi sila directly responsible sa TNVS business na ina-assume nila.
6. I’m the new Owner who assumed the balance, how do I transfer an Uber ready vehicle to my account?
A lot of new partners who have already assumed balance are asking how they can transfer the Uber ready vehicle to their account. This is the best way to do this:
- Create a NEW Uber Partner Account. [Refer to this step by step guide on how to create an Uber Partner Account]
- Enroll the vehicle under your account
- Make sure the banking details you enroll is your account NOT the previous owner’s account (baka sa previous owner mapunta ang payout) [Refer to this tutorial How to edit or Enroll Banking Details to receive your Uber Payout]
- Then, email Uber at firstname.lastname@example.org to request for a vehicle transfer. State the vehicle details, partner account details of the previous partner and your new account details.
- Finally, ask the previous Uber Partner to email Uber at email@example.com to confirm the vehicle transfer request.
Hope this article helped. Let us know in the comments sections if you have any questions or suggestions. You can also reach us at firstname.lastname@example.org. We would love to hear from you!
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