Tax Committee comments about the income of Yandex. Taxi in Uzbekistan
Tashkent, Uzbekistan (UzDaily.com) -- The Tax Committee has issued an official commentary on the situation with Yandex Go (Yandex Taxi) in Uzbekistan.
In connection with publications in social networks about the Yandex. Taxi Tax Committee reports the following.
The committee said that Ridetech International B.V., which provides the Yandex. Taxi services, is a resident of the Kingdom of the Netherlands.
In accordance with the Tax Code of the Republic of Uzbekistan, a company must pay VAT for the sale of services and tax on non-resident income received from sources in the Republic of Uzbekistan.
When foreign legal entities provide services in electronic form to legal entities of the Republic of Uzbekistan, the place of sale of which is the territory of the Republic of Uzbekistan, the specified buyers of such services are recognized as tax agents.
Given that Ridetech International B.V. sells services to legal entities of the Republic of Uzbekistan, tax agents are local enterprises that provide transportation services - aggregators.
To date, there are 135 passenger transportation aggregators (enterprises) in the republic that organize the provision of the Yandex. Taxi.
How is service revenue distributed?
For 2021-2022 the total revenue of 135 aggregators from the provision of services in Uzbekistan through the Yandex.Taxi platform amounted to 1.06 trillion soums, which is distributed as follows:
- 84% or 889.6 billion soums - to individuals;
- 5% or 53 billion soums - to aggregators;
- 11% or 116.5 billion soums - Ridetech International BV.
For rendered in 2021-2022. services to aggregators from Ridetech International B.V. for a total amount of 116.5 billion soums, tax agents accrued and paid 17.5 billion soums of VAT to the budget.
Revenues of Ridetech International B.V. (Netherlands) from granting the right to use the Yandex.Taxi program to taxi companies are recognized royalties and are subject to taxation on non-resident income.
However, in accordance with the Convention concluded on 18 January 2001 between the Republic of Uzbekistan and the Kingdom of the Netherlands on the avoidance of double taxation of income and the prevention of tax evasion on income and capital, the tax rate on income in the form of royalties is reduced to 0%.
In this connection, the income of Ridetech International B.V. received from sources in the Republic of Uzbekistan is not subject to taxation in Uzbekistan.
Aggregators are payers of generally established taxes in accordance with Article 237 of the Tax Code of the Republic of Uzbekistan.
In particular, in 2021-2022. 135 aggregators as a result of the provision of services by Ridetech International B.V. for a total of 1.06 trillion soums received 5% or 53 billion soums as income.
These enterprises, from the income received for 2021-2022, paid only 15.2 billion soums of taxes:
- 9.7 billion soums of VAT,
- 1.6 billion soums of income tax;
- 3.9 billion soums of personal income tax.
More than 81,000 citizens-drivers are connected to the Yandex.Taxi service in the republic, and according to the concluded agreements, 84% of the total income remains with these citizens.
In particular, in 2021-2022. self-employed taxi drivers have funds in the amount of 889.6 billion soums as income. Income from the labor activity of self-employed persons is not taxed.
In this connection, the income of citizens providing services for the transportation of passengers as self-employed persons remains completely at their disposal.
Currently, the Tax Committee is working to integrate the Yandex.Taxi platform with the information system of the tax authorities, in particular, the automatic generation of checks with a fiscal mark.