Hi Joy Esther,
The amount of tax we are required to withhold is dependent upon whether or not you have a valid PAN or Aadhaar number on file with Upwork:
For Upwork users that have a PAN or Aadhaar on file, we are required to withhold 0.75% of client payments to users.
For Upwork users that do not have a PAN or Aadhaar on file, we are required to withhold 5.0% of client payments to users.
The withholding tax is calculated based on the gross amount that the user invoices their client, so it is calculated prior to freelancer service fees or any other fees that may reduce the amount credited to the user’s account. You can check this help article for more information.
I did mailed you two times about tax withholding but i didn't get any response from your side.my question was why the upwork deduct 5 percent taxes? i have already updated my Aadhar number. than why it's happen to deduct 5 percent tax? as per upwork rules upwork should deduct only 0.75 percent.
Can you plaese check asap?
Aarti, Gautam and Gagandeep,
We appreciate your patience while we were checking on this. The team confirmed that the transactions you were referring to had happened before PAN/Aadhar numbers were added to your accounts. Therefore, it was withheld at 5% rate. Going forward you should see the tax being withheld at 0.75%.
Did they help you because they are doing the same with me? I had PAN info long time back but they silently were deducting 5% and when contacted to their Support, they had no answer and simply said they will email me.
Learn more about our awesome Community member Claudia!Learn More
We've added a meeting scheduling tool and an option to sync with your Google or Microsoft calendar to help you streamline interviews and work meetings on Upwork.Learn More
We're releasing a suite of new features for Project Catalog™ designed to help talent promote projects.Learn More
In the webinar, we teach you how to create a project, how to best utilize Project Catalog™ for your independent business, as well as share some best practices and helpful resources.Learn More