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vinod111
Community Member

What is Federal Tax Classification for India in W-8BEN form?? not sure about this part

Hi,

I hope all of my fellow freelancers have received an email notification about W-8BEN and might have updated this information. 

 

I don't know why it shows the Federal Tax Classification option for Non-US freelancers. Moreover, it has few options to select from the dropdown so not sure what option need to select. Or even Indian freelancers need to provide information on Federal Tax Classification. 

 

It would be helpful if someone from Upwork would clarify this or if any fellow freelancer who provides services on account/taxes can answer this question.

 

Thanks,

Vinod

13 REPLIES 13
PradeepH
Moderator
Moderator

Hi Vinod,

 

Thank you for your message. W-8BEN forms are required by the U.S. Internal Revenue Service (IRS) and are used to determine whether or not you live in the U.S. and what taxes, if any, we need to withhold from your earnings on Upwork. We will be required to comply with IRS regulations and withhold income tax from your future earnings if the new W-8BEN or W-8BEN-E is not completed by Dec. 31, 2022. Any tax withheld will be sent to the IRS, and we will not be able to provide refunds, even if the forms are later completed. You can complete this by going to Settings > Tax Information and updating all three forms (Tax Residence, W-BEN/W-BENE, and Tax Identification Number) under the Tax information page. You need to select the Federal Tax Classification based on how you operate on Upwork.

 

Thank you,

Pradeep

Upwork

Hi Pradeep,

Thank you for explaining.

But still question is that as an individual freelancer from India(Non US), what option should we choose from dropdown menu of 'Federal Tax Classsification'?

Hi Harshesh,

 

 If you are not a U.S. person, you will need to complete and submit Form W-8BEN or Form W-8BEN-E to Upwork, and you are also responsible for complying with the tax laws in your own jurisdiction. For questions about what taxes you owe, you may wish to consult with a trusted tax expert or advisor — Upwork cannot provide tax advice. You can find more information in this help article and on this thread

 

~ Nikola
Upwork

Hi Harshesh, 

I beleive you got an answer to this already. Can you please share? I am stuck the with the same question, now that I am selecting "Individual" as I am providing services as individual. I think this will work.

Thanks.

did you get any specifications on it? I have just registered my agency and I have the same question.

which option is used if my agency is PVT LTD?

Hi Jigar,

 

Thank you for reaching out to us. You'll need to select how you would want to declare your tax. It will be best to clarify this with your tax advisor as Upwork doesn't provide tax advice on freelancer's tax declarations. 


For your reference, you may check this help article.


~ AJ
Upwork

I have one more question. Let's say I have two PAN numbers 1) for my personal and 2) for my company pvt ltd - PAN

So When I submit the tax information under my agency settings the same information reflects on my freelancer profile settings. Why?

Hi Jigar,

 

Since you're the agency owner, it will retain the tax information from your freelancer profile. However, you have the option to update it. Just go to this page to do so.


~ AJ
Upwork
a047adce
Community Member

Hi Pradeep, 

I am trying to make an agency account. My company is a Pvt Ltd company in India. Which federal tax classification should i choose. Pvt ltd is not there indrop down.

Thanks

Rajjeshh

what option you have selected? I have just registered as PVT LTD and I need your opinion

did you get a solution about dropdown selection if PVT LTD?

yunuskhanmalkan
Community Member
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