Clarification Regarding Tax Withholding on Earnings

[#1]

Subject: Clarification Regarding Tax Withholding on Earnings

Dear Upwork Support Team,

I hope this message finds you well.

I am writing to seek clarification regarding the tax withholding on my recent earnings through Upwork. As a registered sole proprietor (s.p.) based in Slovenia, I believe that my earnings should not be subject to withholding tax under current regulations.

To provide some context:

1. Tax Residency: I am a tax resident of Slovenia, and I am fully compliant with local tax obligations. As per my understanding, Slovenia has a double taxation agreement with many countries, ensuring that income earned abroad is taxed in Slovenia rather than at the source.

2. Current Situation: I have noticed that a portion of my earnings has been withheld as tax. Given that Slovenia and Oman (the country of my client) do not typically impose withholding tax on such transactions, I believe this may be an error.

3. Upwork's Role: I understand that Upwork acts as a facilitator for international payments and does not usually withhold taxes on behalf of non-U.S. freelancers, especially those based in the EU.

I would appreciate it if you could review my account and provide clarification on this matter. If this withholding tax was applied in error, I kindly request that it be reversed and that my full earnings be released.

Thank you for your attention to this matter. I look forward to your prompt response and assistance in resolving this issue.

Best regards,

Lucija

[#2]

Hi Lucija,

Thank you for your message. I checked and see that you were able to create a support ticket about the issue. Our support team is currently looking into this for you and will contact you directly through the ticket to provide assistance.