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Uber, PwC collaborate to expand tax net in Nigeria’s transport sector

19 Jul 2016
Financial Nigeria

Summary

The Uber driver's tax guidance was developed in partnership with the Federal Inland Revenue Service (FIRS) and the Lagos State Internal Revenue Service (LIRS).

L: Taiwo Oyedele, Partner, PwC; Folarin Ogunsanwo, Executive Chairman, LIRS; Ebi Atawodi, General Manager, Uber West Africa; during the presentation of Uber Driver-Partner Tax Briefing Note recently in Lagos.

Uber, a multinational online transportation network company, said on Tuesday that it has partnered with PricewaterhouseCoopers (PwC) Nigeria to simplify the process of paying taxes in the Nigerian transport industry. The partnership aims to help expand the tax net in the industry.  

In a statement released today, the technology company that connects riders and drivers said a guidance has been developed to make it easier for Uber drivers to understand the processes of paying taxes. The guidance was developed in partnership with the Federal Inland Revenue Service (FIRS) and the Lagos State Internal Revenue Service (LIRS).

“For many drivers, this is the first time they are registering for tax and paying taxes, so having clear guidance on what to do is important," said Taiwo Oyedele, Head of Tax and Regulatory Services at PwC. "Further, as individuals succeed and begin to grow their own business, their tax obligations change, and this is where we find a lot of challenges.”

Uber is available in close to 500 cities across more than 70 countries. The ride-sharing service debuted in Lagos in July 2014 and was launched in Abuja in March 2016. With the largely informal nature of the transport sector in Nigeria, there is little clarity on how much money is made and the tax contributions to the state. But with Uber, all transactions are electronically recorded.

Uber also said each of its potential drivers is expected to provide his or her Tax Identification Numbers (TIN).
 
“The drivers using Uber know how important it is to pay the right amount of tax," said Ebi Atawodi, General Manager for Uber in Nigeria. "We are proud to say all driver-partners are required to sign up for Uber with their Tax Identification Number (TIN), showing they have registered with the authorities. With the recent passing of the resolution on ridesharing by the Federal House of Representatives, Uber’s new partnerships will help all Nigerians embrace a sharing economy that can be a valuable contributor to the country.”

Executive Chairman of the LIRS, Folarin Olukayode Ogunsanwo, said bringing the informal sector into the tax net is a major area of focus for Lagos State. Ogunsanwo also commended Uber and PwC for the initiative that aims to help promote tax compliance in the State.

Coordinating Director of the FIRS, Bamidele Ajayi, also commended the Uber technology-driven business model, saying, "We are excited to collaborate with companies like Uber and PwC to offer a service that makes paying taxes easier for entrepreneurs. It is our duty to educate the general public on tax matters and we look forward to working closely with the private sector to create reliable and efficient solutions.”


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