How do tax withholdings on earnings work?

According to current tax regulations, Uber is required to withhold Value Added Tax (IVA) and Income Tax (ISR) on your earnings generated from the “Provision of independent services through a technology platform.”

Tax Withholdings

Earnings you make through the Uber app will be subject to two withholdings, regardless of the revenue amount:

Value Added Tax (IVA):

• Half of the IVA you charge users (16%) is withheld, i.e., 8 % of the IVA on all trips and deliveries you make through the Uber app.

Income Tax (ISR):

• A flat 2.1 % is withheld, regardless of the revenue you generate from providing services through the app.
• For referral payments, 1 % of ISR is withheld, regardless of the revenue amount.

Who is subject to tax withholding?

To all individuals who provide services through the technology platform and whom Uber is required to withhold.

What happens to the taxes withheld from me?

The withheld amounts of ISR and IVA will be delivered directly to the Tax Administration Service (SAT). Within the first few days of the following month, we will issue you the respective withholding tax receipt.

Why are I being withheld taxes exceeding 8 % IVA and 2.1 % ISR?

Remember that, if you have not provided your RFC (Federal Taxpayer Registry), Uber is required to withhold a penalty of 16% IVA and 20% ISR.

To avoid penalty withholdings:

Provide your correct RFC code. Verify that your RFC code is valid and registered with the SAT.

For more details, see: My withholdings exceed 8 % IVA and 2.1 % ISR

What IVA rate applies to canceled trips?

A 16 % IVA rate applies to trips canceled with a Cancellation Fee.

Additional Questions

Visit the following page: Everything you need to know about taxes in Uber Mexico

Support with withholding receipts

If you need a withholding receipt, access the following link: Requested Digital Tax Receipts for tax withholding

If you have other questions related to tax withholdings, please complete the following information: