WHT

[c9df2b9e]

After submitting my PAN to Upwork, a 1% WHT deduction has been made from my account. However, I am now concerned about when I will receive the withheld 5% of my earnings.

[0e6e7259]

It's important to note that the 1% deduction from your earnings on Upwork is the withholding tax (WHT) that is required by the Indian government. The 5% WHT that you mentioned is actually a different tax that is applied to non-resident Indian freelancers, and it is deducted from your gross earnings rather than your net earnings.

If you are a resident of India and have submitted your PAN (Permanent Account Number) to Upwork, the 1% WHT deduction is the only tax that will be withheld from your earnings. The withheld amount should be reflected in your account balance, and you can withdraw it to your bank account as usual.

If you are a non-resident Indian freelancer, the 5% WHT may be applicable to you. However, this tax is usually deducted by Upwork at the time of payment, and the net amount is credited to your account. You can check your transaction history on Upwork to see if the 5% WHT has been deducted from your earnings.

[PradeepH · Accepted solution]

Hi Akash,

Thank you for your message. You’ll be able to claim a credit for the tax withheld against your tax liability for the financial year, or seek a refund if the tax withheld exceeds your tax liability for the year. You may wish to consult with a trusted tax expert or advisor for specific advice.

Thank you,

Pradeep

[3d9ff481]

What if i didn't add my pan card number and uowork showing that I received 127 dollars and it deducted 6 dollars for WHT or 12 dollars service fees but if i add pan card number before withdrawing will it reduce WTH and service fees and let me withdraw my whole payment ? 

[PradeepH]

Hi Navu,

Thank you for your message. I checked the transaction you are referring to and noticed that you are charged 5% WHT. After you update your PAN details, the WHT will be reduced to just 1%. There will be no change to the service fees charged to you.

- Pradeep

[3d9ff481]

Thank you sir Now i updated my PAN details and they verified it  now will Upwork give my money back which it cut before udating my pan details.

[759e32fa]

Hi Navu,

Thanks for reaching out. Upwork will not refund the amount deducted for your withholding tax prior to you updating your PAN details. The new rate will only apply to your future transactions.

[3d9ff481]

ok but that's not fair 🙁

[c9df2b9e]

Thank you for clearing my concern. By the way, if I charge more than 500 dollars to my first client through milestones, would I get charged 20% or 10% on Upwork commission?

[PradeepH]

Hi Akash,

You will be charged a 20% freelancer service fee for the first $500 earned on the contract and a 10% freelancer service fee for the earnings thereafter. If you earn $10,000.01 or more before May 3, 2023, Pacific Time, your service fees will be 5% through the end of 2023. Check out this help page for more information. 

Thank you,

Pradeep

[2c6713b6]

@PradeepH
""
Hi Akash,

You will be charged a 20% freelancer service fee for the first $500 earned on the contract and a 10% freelancer service fee for the earnings thereafter. If you earn $10,000.01 or more before May 3, 2023, Pacific Time, your service fees will be 5% through the end of 2023. Check out this help page  for more information. 

Thank you,

Pradeep
"

Did upwork have planned to increase service fees in 2024 ?

[karunashankar]

Hello Community member,

I have submitted my Pan ID and it's verified by upwork for my Agency profile as well as my personal profile but upwork is deducting 5% of WHT charges from my Agency profile.

I can see upwork is deducting only 1% from my personal freelancer profile and 5% deduction from my Agency profile.

Please advice me what should I do for less deduction of WHT from my Agency profile.

Regards
Karuna S.

[LuiggiR]

Hi Karuna,

Thank you for bringing this to our attention. We’ve escalated your community post to a support ticket. One of our agents will be in touch with you soon to assist.

[karunashankar]

Hi Luiggi

Thanks, I am regularly talking with the upwork team via mail for this particular issue, and I hope they will resolve it soon.

Thank you