Uber to Withhold Mexico Driver Taxes

Mexico us looking to roll out an automatic tax payment system to help crack down on evasion and the ride-hailing firm Uber will be one of the first participants in the initiative, according to Bloomberg.

The system will be aimed at ride-hailing and food delivery services and allow companies to withhold taxes from users who gain income from it.

Uber will allegedly collect what drivers should be reporting and pay monthly. It will withhold an 8% value-added tax as well as a 9% income tax that will vary depending on the amount of rides driver make per month.

President Andres Manuel Lopez Obrador takes office tomorrow and even though he has worried investors with a referendum scrapping an airport construction project, the taxation program will likely remain.