Mexico tax plan for riding hailing firms may soon be mandatory: Cabify

MEXICO CITY (Reuters) – A tax withholding plan in Mexico for drivers at ride-hailing firms envisaged as voluntary when it was unveiled earlier this week could become obligatory in 2020, Spanish company Cabify said on Friday.

Mexico’s government on Monday outlined the scheme due to be implemented on June 1, and Cabify, Uber Technologies and several other companies said they would participate.

Chinese rival Didi said it would not take part to begin with, however, prompting criticism from Cabify and others that their absence from the program could distort the market.

“What’s been discussed with the finance ministry is that this year it’ll be a voluntary program … and it’s very likely that next year it’ll be part of … the budget spending plan or a new law,” Ramon Escobar, Cabify’s director in Mexico, told reporters on a conference call.

When asked if that meant it would become binding, he said “that’s the conversation we’re having today.”

Mexico’s finance ministry did not immediately respond to a request for comment.

A Didi spokesman said the company will “continue to comply with all tax laws and obligations, and we will continue to encourage our driving partners to do the same.” The firm would continue to analyze its participation in the scheme, he added.

The scheme foresees a monthly value-added tax (VAT)withholding rate of 8% and an income tax rate ranging from 3% to 9%, according to Uber.

Reporting by Sharay Angulo and Julia Love; Editing by Sonya Hepinstall

Source link

more recommended stories

  • Circuit breakers trip, shares soar as China’s Nasdaq-style bourse debuts

    SHANGHAI (Reuters) – Trading hit a.

  • White House to host meeting with tech executives on Huawei ban: sources

    WASHINGTON (Reuters) – White House economic.

  • Equifax nears deal to pay about $700 million to settle U.S. data breach probes: WSJ

    FILE PHOTO: Credit reporting company Equifax.

  • Four Republican lawmakers ask Trump to move forward with $10 billion Pentagon cloud contract

    WASHINGTON (Reuters) – Four Republican members.

  • Confusion builds over U.S. ban on Chinese surveillance technology

    WASHINGTON (Reuters) – Contractors who buy.

  • Trump tells France’s Macron U.S. concerned with proposed digital services tax

    U.S. President Donald Trump reacts during.

  • SoftBank raises $270 million via Seoul unit for early-stage investments

    FILE PHOTO: The logo of SoftBank.

  • UK’s new PM must take 5G decision on Huawei urgently: committee

    LONDON (Reuters) – The new prime.

  • Russia fines Google for failing to filter search results

    FILE PHOTO: The Google logo is.

  • SoftBank’s Son says Japan lacks investment opportunities, is AI ‘developing country’

    FILE PHOTO: Japan’s SoftBank Group Corp.

  • Amazon under EU antitrust fire over use of merchant data

    BRUSSELS (Reuters) – Amazon became the.

  • Ericsson says on track for 2020 targets as second-quarter profit matches forecasts

    STOCKHOLM (Reuters) – Mobile network gear.

  • U.S. Justice Department asks appeals court to pause antitrust ruling against Qualcomm

    FILE PHOTO: A Qualcomm sign is.

  • Senate to grill Facebook over plans for Libra cryptocurrency

    WASHINGTON/NEW YORK (Reuters) – U.S. lawmakers.

  • Amazon rivals ride on Prime Day marketing as protests unfold

    NEW YORK (Reuters) – Amazon.com Inc’s.

  • Huawei to invest $3.1 billion in Italy but calls for fair policy on 5G: country CEO

    MILAN (Reuters) – China’s Huawei Technologies.

  • Amazon workers in Germany to strike over pay, Verdi union says

    FILE PHOTO: An Amazon sign is.

  • Israel holds 5G mobile network tender, aims for 2020 launch

    JERUSALEM (Reuters) – Israel launched a.

  • China’s Ping An to invest in education startup iTutorGroup

    BEIJING (Reuters) – Ping An Insurance.

  • U.S. regulators approve $5 billion Facebook settlement over privacy issues: source

    (Reuters) – The U.S. Federal Trade.

  • Japan sets up working group on impact of Facebook’s Libra ahead of G7

    TOKYO (Reuters) – Japanese authorities have.

  • Volkswagen zooms ahead in extension of alliance with Ford to electric, automated cars

    , NEW YORK (Reuters) – Ford.

  • Macquarie-backed MEIF 6 Fibre outbids USSL for telecoms firm KCOM

    (Reuters) – Macquarie-backed MEIF 6 Fibre.

  • Trump blasts Bitcoin, Facebook’s Libra, demands they face banking regulations

    WASHINGTON (Reuters) – U.S. President Donald.

  • Twitter back up partially after worldwide outage

    FILE PHOTO – The Twitter logo.

  • French Senate approves tax as U.S. opens probe into digital levy

    PARIS (Reuters) – France’s Senate on.

  • U.S. to probe French plan to tax tech companies

    WASHINGTON (Reuters) – U.S. President Donald.

  • Need quick medical advice in Britain? Ask Alexa

    (Reuters) – Britain’s state-run health service.

  • Appetizing prospects: Uber founder takes aim at South Korea’s shared kitchen market

    SEOUL (Reuters) – Chef Youm Jung-phil.

  • U.S. to provide licenses for sales to Huawei if national security protected

    WASHINGTON (Reuters) – The U.S. government.

  • Nine companies set prices for listings on China’s Nasdaq-style tech board

    SHANGHAI (Reuters) – Nine Chinese companies,.

  • Facebook not invited to White House social media summit: company

    WASHINGTON (Reuters) – Facebook Inc said.