UBER, Careem have their Saudi tax dues settled, Asharq reports

Dispute over how to calculate the value-added tax (VAT) due over the past few years

  
Careem employees walk past the company headquarters in Dubai, UAE December 13, 2018. Image for illustrative purposes.

Careem employees walk past the company headquarters in Dubai, UAE December 13, 2018. Image for illustrative purposes.

REUTERS/Satish Kumar
RIYADH: Uber and Careem have settled their tax dues in Saudi Arabia, and they are committed to and work according to the tax system in force in the country, Asharq reported, citing a source it didn't name.

Both companies had a different understanding of the tax system in the Kingdom, and learned the right mechanism of work in the local market after communicating with the General Authority for Zakat, the source said.

"Both companies obtained the necessary clarification at the time, and for a long time, and paid their tax obligations in this framework, and they are currently working according to the system," the source said.

The source added that Uber and Careem may have a previous objection to the tax assessment, and the decision in this regard is subject to the competent judicial authorities.

Bloomberg Agency had reported citing its own sources that Uber and its subsidiary Careem are facing tens of millions of dollars in tax payments in Saudi Arabia.

It also revealed that both companies are facing a combined tax bill in the Kingdom of about $100 million.

These claims are linked to a dispute over how to calculate the value-added tax (VAT) due over the past few years, and the mechanism for sharing it between temporary work companies and individual contractors. The claims also include heavy fines due to late payments by these companies, according to Bloomberg.

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