Here comes the taxman. Are you ready for this?
Bureau of Internal Revenue (BIR) chief Kim Henares has her sights on Uber, Grab and other app-based transport network companies (TNCs).
According to the BIR commissioner, their agency is closely coordinating with the Land Transportation Franchising and Regulatory Board (LTFRB) to track tax payments of these TNCs and their partner operators and drivers.
In recent days, Grab and Uber were given accreditation by the LTFRB. Grab was the first one to secure their accreditation while Uber just secured theirs recently, beating the deadline set by LTFRB.
Henares said the BIR may soon release a new regulation if the need arise which will cover vehicle drivers of Uber, Grab and other TNCs. She also mentioned that UBER, Grab, other TNCs, and their partners are all businesses which have taxes due that must be settled according to law. Yes, we as partners are now a business entity, specifically a sole proprietorship. Remember we registered for a business name with DTI? and signed the Motion for Provisional Authority Terms and Conditions?
“Like any businesses, they are covered by the laws of taxation on entities engaged in business—from registration to issuance of receipts, to filing and payment of taxes,” Henares said. “They are engaged in the provision of services and are covered by all the provisions of the Tax Code for business engaged in the provision of services.”
With the legalization of the app-based transport services, comes the requirements and policies of the government, as well as the collection of taxes. Partners and Drivers must now comply to these requirements set by the government, or suffer grave penalties and fines. A few days ago, LTFRB said that they will impose fines of P200,000 to those drivers caught operating without accreditation.
We are reminded of a classic joke that “licensing” or any other regulation, is what it’s called when a government “takes away your right to do something and then sells it back to you.”
So what’s next for Uber, Grab and their partners? On to the next chapter!
Watch out for our series of articles here in Uber MNL Tips regarding the matter.
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