Cairo – Mubasher: The ride-hailing apps Uber and Careem will allocate a 3% additional share of fare received by their drivers to be paid for the Egyptian Tax Authority as income tax on captains, an official source at the finance ministry said.

Both firms will earmark around 23% of the fare, including 20% as the two companies’ share and 3% as the income tax, the source told Enterprise.

US-based Uber Technologies has been in talks with the Egyptian government regarding the due taxes since it entered the Egyptian market, claiming that the double taxation agreements prevent it from paying the tax.

However, both parties reached a deal on the taxes after reviewing the agreements with Uber’s headquarter in Netherland.

The tax authority is looking to get EGP 6 billion in tax revenues by imposing the value-added tax (VAT) on Uber and Careem for the last two years.