I am working from Mexico.
Seems to be that registering my RFC is convenient and I did it already; however, I wonder if besides this I must upload the W-8BEN form?
In case I must do so, where is the link to upload the form to Upwork? I don't see any repository in my profile's settings.
I would appreciate any orientation.
Thank you so much in advance.
The Form W-8BEN is a form used to confirm you’re not a U.S. taxpayer and that Upwork is not required to withhold taxes from your earnings. To provide Upwork with your Form W-8BEN information, please go to Settings › Tax Information and provide us with your legal name and address.
I am grateful that Upwork is complying Mexican laws, so that the Mexico-based freelancers don't have any problem later. But, shouldn't the Earnings tax (Impuesto sobre la Renta) be applied after deducting the Upwork fee, and not before (or how can we deduct the Upwork fee, as the money for this fees never comes to our hands?). And, for the effect of that deductions, do you have a RFC (Registro Federal de Contributyentes) registry.
Hi Lucio Ricardo,
The withholding tax is calculated based on the gross amount that you invoice your client, so it is calculated prior to freelancer service fees or any other fees that may reduce the amount credited to your account.
Mexican goverment have looked to the platforms contractors, for surveilling our tax obilgation. But social security has not looked to us. They should do also, don't you think, Mexico-fased freelancers?.
I landed here in 2009, oDesk/UpWork became profitable to me really fast and I've been paying my taxes religiously since then. Not ecstatic for paying taxes, just an obligation.
For more than a year I've been wondering how you guys will going to handle this matter. Now I know, and I foresee more changes to come in ref to VAT (or IVA) to be retained to us, hopefully in the far far future. So far no questions, likely I'll have some in the next weeks.
I'm not thrilled about these changes, but can I predict I'll be extremely annoyed for having to deal with Tax Authorities (SAT) in my country. I also predict too many hours of my free time spent studying the law referenced here, just to be sure my accountant doesn't mess up my taxes. Kidding, I know he wouldn't dare and besides, he's a bestie
Fortunately, we still have some overhead expenses that are tax-deductible.