Obligation to file tax return
Tax return is a filing process where you, as delivery partner (registered as such on the Uber Platform), report the amount of tax from your previous year’s income for the service you provided to restaurants to the National Tax Agency. The filing deadline depends on whether you are filing as an individual (income tax) or as a corporation (corporate tax). For further details, please refer to the Japan National Tax Agency’s website.
- Do I need to pay income tax?
Yes. According to the Japan National Tax Agency, you must file a final tax return if your total income for the year exceeds the total amount of deduction from income earned during the year from January 1 to December 31. We encourage all of Uber partners to meet their tax obligations like everyone else, including declaring your delivery earnings from delivery requests completed on the Uber Platform in your individual final tax return. Although we understand that generally, business-related expenses directly incurred to earn your delivery income should be deductible, please consult your tax accountant to consider your specific individual tax situation.
- Does Uber pay or withhold tax for me?
No. As an Uber partner, you independently provide delivery services to Restaurant Partners on the Uber Platform. You are not an employee of Uber nor a contractor of Uber and your earnings from providing delivery services are paid to you by Restaurant Partners. As such, you are responsible for reporting and paying all taxes associated with your earnings producing activities.
To understand more on your specific individual tax requirement, you should contact your tax accountant.
- Do I become a Japanese consumption taxpayer? If so, do I need to register for Japan Consumption Tax?
Please refer to the Japan National Tax Agency’s website for Japan consumption tax guidelines. In general, if an individual person had more than JPY 10m of Japanese consumption taxable sales 2 years prior to the current tax year, such person becomes a Japanese consumption taxpayer (“JCT Taxpayer”) during this year.
If you are treated as a JCT Taxpayer, you will have consumption tax obligations such as filing a consumption tax return and maintaining relevant records/evidence to support consumption tax declaration. As of today, a JCT Taxpayer notification form is required to be filed with the Tax Office with jurisdiction over the place for tax payment of your business activities if you become a JCT Taxpayer. However, a mandatory tax invoicing system called the Qualified Invoicing System will commence from 1 October 2023. JCT Taxpayers are required to submit an application to the tax authorities to register themselves as JCT Taxpayers by 31 March 2023. After approval is received, JCT Taxpayers must issue qualified invoices with effect from 1 October 2023.
To understand more on your specific individual consumption tax requirement, you should contact your tax accountant or your local tax office.
- How do I declare / pay for Japan Consumption Tax?
Please refer to the Japan National Tax Agency’s website for details on Japan consumption tax declaration process and payment.
Please note that you are responsible for determining whether you are a non-JCT Taxpayer or JCT Taxpayer and the related registrations with the National Tax Agency. Therefore, if you are not sure whether you are a JCT Taxpayer or not, please consult with your tax advisor or the relevant tax office to provide your basic information (such as sales proceeds in the base period including fees/compensations from your other businesses, notification forms filed to the tax office so far, etc).
- What documents will I receive from Uber?
You can download your weekly payment statements from your partner dashboard which has information about the earnings you receive from Restaurants and Uber service fees, etc, each week. This is designed to provide you with financial information which may help with your tax filings, but you are nevertheless responsible for maintaining your own records and we recommend you consult your tax advisors for specific advice for your circumstances.
- Where can I find my weekly payment statement?
You can download this on your partner dashboard by heading to Partner Payment.
- How does the service fee work with taxes?
You are charged a percentage-based service fee for Uber’s lead generation services. The service fee is calculated on the gross delivery fee you earn.
This may be a business expense for you. However, it’s important to note that Uber is not able to provide tax advice - Your tax advisor can help you identify which of your expenses qualify as allowable business expenses. To understand more, you can contact your local tax accountant.
- What is my service fee?
You can find the service fee applicable to you in the delivery partner handbook which is distributed to you at your onboarding stage.
- Does the delivery fee I earn include Japan consumption tax?
All delivery fees you charge restaurant and merchant partners for the provision of delivery services are inclusive of Japan consumption tax.
- How do I calculate Japan consumption tax on my delivery fee?
Delivery fees you charge Restaurants are inclusive of Japan consumption tax. As such, Japan consumption tax is calculated as 10/110 of the delivery fee. For example, if the delivery fee charged on a trip is JPY 1,000, consumption tax is JPY 91.
- What expenses are deductible?
It’s important to note that Uber is not able to provide tax advice. Every Uber partner has different earnings and expenses, and we are unable to answer specific questions about expense deduction. To understand more, you can contact your tax accountant.
- How can I keep track of receipts/expenses?
There are many ways to keep track of receipts/expenses. For best practices, it is best to speak to your local accountant.
- How do incentives, referral incentives and miscellaneous payments work with taxes?
It’s important to note that Uber is not able to provide tax advice. Any amount you receive as part of providing delivery services to Restaurants on the Uber Platform should constitute your earnings and be part of your tax obligations. To understand more, you can contact your tax accountant.
To understand more, you can contact your local tax accountant.
- How much tax should I pay?
It’s important to note that Uber is not able to provide tax advice. Every Uber partner has different earnings and expenses and your total taxable earnings or deductible business-related expenses will depend on your unique circumstances. Note you are not an employee of Uber nor a contractor of Uber and your earnings from providing delivery services are paid to you by Restaurant Partners, as such you are responsible for reporting and paying all taxes associated with your earnings producing activities. To understand more on how to calculate any taxes you should be paying or are liable for, you should contact your tax accountant.
- My tax advisor has questions about Uber
Unfortunately, we are not able to provide tax advice. To help your tax advisor, you can provide them your weekly payment statement from your Uber profile. This summary provides your total earnings from Restaurants (gross delivery fees), a breakdown of your fees, and other information to help file your taxes.
Everyone's tax situation is unique to them and unfortunately Uber is not able to provide tax advice or answer questions specific to your individual tax requirements.
Your tax advisor or yourself may like to speak to the relevant Japan tax office directly if you have any further questions.