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peeyushpareek
Community Member

My Tax status

My Tax status: While putting in my W-8BEN tax information it says I cannot work for US projects. Is that the right assumption ? Below are the points it asks me to certify:

 

4. the services performed under this Upwork account will not be performed in the U.S. and

5. the income related to this Upwork account will not be effectively connected with the conduct of a U.S. trade or business.

16 REPLIES 16
nkocendova
Community Member

Hi Peeyush,

You must be located in the U.S in order to work U.S only jobs. Hope that helps!

~Nina

Hi Nina,

 

As I understood it, W-8BEN is for a Non-US person. Does this mean a Non US person cannot work on a project for a US company via Upwork?

 

Regards

Peeyush

Hello Peeyush,

 

Non-US freelancers can submit proposals to any jobs except to US-only jobs here on Upwork. The Form W-8BEN is a form used to confirm that you’re not a U.S. taxpayer and that Upwork is not required to withhold taxes from your earnings. You may click here to learn more about Form W-8BEN. Thank you.


Untitled

Hi Peeyush,

My previous answer was a bit confusing, I apologize. In the tax section we just wants to make sure that you are not working from inside the U.S nor that the income you earn will be associated with a U.S based trade or business because that would require a different type of tax form.

With regard to working U.S jobs, you are able to work jobs posted by U.S companies. However sometimes clients prefer to hire freelancers specifically from the U.S for certain jobs, and those jobs are termed as U.S-Only jobs, which you would not be able to apply to.  I hope that clears things up!

~Nina

Thanks Nina. Yes it does.

 

One more question if you know the answer. It seems Upwork will deduct VAT unless I have the VAT registration and to have VAT registration I think I need to work as a company and not an individual freelancer...!! Is that correct ?

 

Regards

Peeyush

Hi Peeyush,

 

Upwork charges the country-specific Value Added Tax (VAT) to freelancers and agencies in the European Union (EU), unless you provide a valid VAT number. VAT will be assessed on services provided by us, not on services you provide your clients. You can check this help article for more information. Thanks!

 

~ Joanne
Upwork

You said, if I'm NOT a U.S. person, after acceping the statement "the income ... will not be effectively connected with the conduct of a U.S. trade or business", then I'm still allowed to works jobs posted by U.S. companies.

This is slightly confusing to me, it seems like a contradiction.

If I work a job for an U.S. company from outside the U.S., why isn't that a U.S. trade or business?

Thanks in advance

 

If the intention of the statement

"5. the income related to this Upwork account will not be effectively connected with the conduct of a U.S. trade or business."

is to clarify that it's about trades or business that happens completely inside the territory of the U.S., could it make sense to word the statement more clearly? For example:

"5. the income related to this Upwork account will not be effectively connected with the conduct of a trade or business where all involved parties are inside the U.S..

Hi Kai,

 

The form Nina was referring to is form W-8BEN that is used to confirm that a freelancer isn't a U.S. taxpayer. Either form W-8BEN or W-9 has to be completed by the freelancer before they are able to withdraw their earnings from Upwork. It's irrelevant if the freelancer works with clients located in the U.S. or in other countries in this case.

 

Please, check this help article for more information.

~ Valeria
Upwork

Hello Nina,

 

Thanks a ton for pretty much elaborate answer, I am doing all my work from outside US but I have US bank account in which I wish to get my income and transfer it via wire, would that be ok?

Hi Omkar,

 

Please check this help article form more information on using Direct to US Bank as your payment method. You may want to talk to a local legal and/or tax advisor to find out about the best ways for you to register your business and report your Upwork income to your local tax authorities.

 

Additionally, you may want to check this help article for more information about the Wire transfer. Please let us know if you need further assistance. 

~ Nikola
Upwork

Hi Neena

 

I have a similar question. Point 5 mentioned is actually very confusing because if the client is in US obviously the income he is paying us freelancers is from a US based business. ? 

 

BUt point 5 says income connected should not be from US based business or trade. So that makes it really confusing. 

ok, just so I understand. I am Canadian, and can only work for Canadian companies or bid on CA jobs?

Hello Linda,

 

You may submit proposals to those job posts without location requirements or to those jobs where you meet the location requirement. If you're interested, you may read these articles to help you get started and know how Upwork works. You may also read this article to help you avoid questionable jobs.

 

Thank you and good luck!


Untitled

Great, this is a good start. I'll do more research (new to this platform). So what about the tax information, I didn't feel comfortable checking the box considering Note: Only check this certification if all of these items are true; otherwise contact Customer Support.

 

What do you think, do I check or not, and will this make a difference?

Hello Linda,

 

If all the items stated are true, you may check the box and then click save. Thanks!


Untitled
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