Uber, Careem Said to Face $100 Million Bill in Saudi Tax Squeeze
- Several tech firms said to be hit with value-added tax bills
- Saudi authorities said to reassess tax model for gig economy
A Saudi Uber driver in Riyadh.
Photographer: Fayez Nureldine/AFP/Getty Images
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Saudi Arabia has slapped several technology firms, including Uber Technologies Inc. and its Dubai-based subsidiary Careem, with tax bills worth tens of millions of dollars, according to people with knowledge the matter.
Uber and Careem face a combined bill worth around $100 million, two of the people said. The claims are related to a dispute over how to calculate the value-added tax owed over the past few years by gig economy firms versus their individual contractors -- and include hefty penalties for late payment, the people said.