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Tuesday, 9 August 2016

House holds hearing on legal status of Uber and Careem

The House CIT Committee held hearings with Uber and Careem as it looks into what might be an acceptable framework for ride-hailing apps. The hearings found that Uber allegedly does not pay taxes in Egypt, according to media coverage, but rather is taxed in the Netherlands, where one of its international headquarters is based. As the Netherlands and Egypt have a dual-taxation agreement, Uber is (essentially) not obligated to pay taxes here. The same cannot be said for its drivers, whose names and records are submitted to the Tax Authority, obliging them to file tax returns. We had noted back in March, that the Tax Authority had plan to force Careem and Uber to comply with withholding tax provisions in a bid to ensure that private cars used for commercial purposes are accurately tallied and taxed. As for licensing, representatives of both Uber and Careem called for special permits be provided to their drivers to stave off allegations of illegitimacy and harassment, Al Borsa reports. Sounds a lot more like a 20th century livery industry than today’s “sharing economy” if you ask us.

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