BIR to make sure Uber, Grab Car will pay taxes

The Bureau of Internal Revenue (BIR) said on Thursday that app-based transport network services like Uber and Grab Car should comply with the country's existing tax laws.

"May income ang Uber di ba? Natural dapat magbayad siya ng income tax. Parang ikaw din di ba? My income ka, natural magbabayad ka ng income tax," BIR Legal Division deputy commissioner Estela Sales said in a report on GMA News TV's Quick Response Team. 

"Ganoon din ang Uber, you have to pay income tax due on your income," she added.

She said that Uber and Grab Car are considered online businesses.

Sales admitted that taxing the app-based transport network services would mean that their customers may have to expect hike in fees.

Uber and Grab Car passengers can pay with cash or through a credit card.

With this scheme, BIR said it will first monitor how to tax the TNVs.

"Probably, we need to come out with the rules on how to monitor the payment so we can tax them properly," Sales said.

According to Uber in a statement, the company complies with all the applicable tax laws in every market it operates in. It also works with the local authorities to ensure compliance.

Meanwhile, Grab Car executive Natasha Bautista said the company is willing to pay tax responsibilities to BIR. -Trisha Macas/NB, GMA News