Tax Deducted at Source (TDS)

Upwork also collects and remits TDS to the Indian government as required by law. TDS applies to all client payments sent to Indian freelancers and agencies.

We are required to withhold a 1% tax from your earnings if you provide a valid permanent account number (PAN) to Upwork and link your PAN to your Aadhaar number (or are exempt from this requirement). We are required to withhold a 5% tax from your earnings if you do not provide a valid PAN to Upwork and do not link your PAN to your Aadhaar number.

Form 16A

Upwork files quarterly TDS reports within one month after the end of each quarter as required by law. We email Form 16A (certificate of tax deduction) to you within two weeks after we file. 

Send any Form 16A correction requests to taxinfo@upwork.com by the deadline (find the dates in the chart below) and include these items:

• The email address you registered for access to Upwork

• The reason for your request

• The new PAN for your correction

For information on how to link your PAN to your Aadhaar number and exemptions from this requirement, visit the India tax authority website.

Check the chart for final dates for requesting Form 16A corrections.

Foreign Inward Remittance Certificate (FIRC)

If you are working from India, you may need a FIRC to document your foreign money transfers from Upwork. Upwork can request the FIRC information from the payment processor who sends your payment, and we can forward that to you.

To request a FIRC, contact Upwork Support and provide us with this information:

• Transaction ID of the withdrawal

• Date of withdrawal

• Amount in INR

Keep in mind that some banks can only provide the disbursement receipt or proof of transfer and not the actual FIRC, and there also may not be a FIRC available for older withdrawals.

Purpose Code

According to India’s GST laws, freelancing services are categorized under database and online information. The purpose codes are hardcoded to P0103 of P1006. Upwork does not control which of these purpose codes are used.

To request a purpose code change, contact your AD Bank and ask them to email IndusInd Bank at grdops_rda@indusind.com. You must make your requests for purpose code amendments within the set timelines for the amendments to be available. 

Check the chart provided by the Reserve Bank of India for final dates to request purpose code amendments.

Please note that this information is for general guidance only, and for specific tax advice, consult your local tax authority or a tax advisor.

Frequently asked questions

Who has to pay GST?

GST applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in India.

How do I enter my GSTIN and PAN on Upwork?

You can enter your GSTIN and PAN by visiting  Settings  and then selecting  Tax Information .

I tried entering my GSTIN but received an error message. How do I correct this?

Make sure to enter your GSTIN using the correct format as defined by the Indian government. Here's the correct format:  ##AAAAA####A#AE

"#" means to enter a number in that spot
"A" means to enter a letter in that spot
"E" means to enter a number or letter in that spot

I don't have a PAN; what should I do?

If you do not currently have a PAN, consult your local tax authority or a tax advisor.

How is TDS different than GST?

GST only applies when both you and your client live in India. TDS applies to all of your earnings, including those from clients in India and around the world.

My PAN was rejected. Why?

Make sure the name on your PAN matches your legal name on your Upwork account. You can also check your PAN records on the India tax authority website.

I don’t think I'm required to pay TDS. What should I do?

Consult your local tax authority or a tax advisor  to learn more about Indian TDS and your tax obligations.

Why do I have to link my PAN to my Aadhaar?

Indian tax law requires you to link your Aadhaar to your PAN. If you do not link to Aadhaar, your PAN will no longer be valid. This means we are required to charge you 5% tax for TDS instead of 1%.

What if I need a purpose code amendment outside the timelines the Reserve Bank of India set?

If you need an amendment outside the timeframe, the request may be declined. Please reach out to your bank directly.

How long will it take to get my FIRC?

FIRC is usually issued within four weeks. FIRC for withdrawals made more than two years ago may take longer.

Why am I receiving a disbursement receipt instead of my FIRC?

Some banks can only provide the disbursement receipt or proof of transfer and not the actual FIRC, and there also may not be a FIRC available for older withdrawals.  Since Upwork uses multiple payment processors, FIRC availability may vary depending on which bank processed your payment. Contact your bank for assistance if a FIRC is not available.

I worked for a non-Indian client who paid in USD, and my invoices on Upwork show USD; but, my FIRC shows INR. Can I get a FIRC in USD?

Clients pay on the Upwork platform in USD, but the currency that shows on your bank statement and FIRC will depend on the payment method and bank you added in your withdrawal method. If you wish to receive your funds in USD, add a US dollar bank account (USD wire transfer).