Double Dutch - Uber’s tax system
Uber International C.V
(sits atop Uber’s nerwork of subsidiaries outside the U.S.)
- No employees
- Founded in the Netherlands
- It's headquarters is located in Bermuda
Uber B.V.
- 48 employees
- Transactions in the world outside the U.S. are sent to this company
- 80% of that ride payment back to the driver
- 1% of the remaining amount(20%) is this company’s income.(Dutch government can take a tax from this amount)
- The balance subtracting the costs of operation is sent to Uber International C.V. as a royalty
Ex))
①When 100$ transaction happens in one city
②the fare is sent to Uber B.V.
③$80 back to the driver
④$20-operation costs (example this time is $10)
⑤$10–($20*1%=20¢ as a royalty sent to the U.S.)=$9.80
⑥$9.80 is sent to Uber International C.V
⑦But Uber International C.V headquarters is located in Bermuda
⑧And Bermuda is not taxable
⑨$9.80*1.45% is sent to the U.S. as a royalty for intellectual property
(Only this scope is taxable for the U.S. government)
~finish~
■Source:How Uber plays the tax shell game