withholding tax rate for Indian Udemy Instructors

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withholding tax rate for Indian Udemy Instructors

How much is the withholding tax rate for Indian Udemy Instructors? Is there any posibility, we can opt for 0% withholding tax for purchases made in US.

Could anybody help me here. 

11 Replies

I think it is not possible it depends on the treaty b/w India and USA

Hi,

Thanks for clarifying.

ElianaC
Community Moderator
Community Moderator

Hi @MaheshaK497 The withholding tax rate will depend on the form you submit. Due to the sensitive and personal nature of tax forms, we can't tell you how to complete the form or exactly what to enter. But we can share some general information about this.

 

Our tax form tool provides instructors with the ability to select from a variety of different tax forms, including:

    • W-9 (used by U.S. individuals and entities to certify their Tax ID number)
    • W-8BEN (used by non-U.S. individuals to certify that they are a beneficial owner or a financial account-holder, and claim treaty benefits)
    • W-8BEN-E (used by non-U.S. entities to certify they’re a beneficial owner or a financial account-holder, and claim treaty benefits)

We also support the ability to submit certain less-common types of forms through our Support Help Center:

  • W-8ECI (used by non-U.S. individuals or entities to certify they’re a beneficial owner receiving U.S.-sourced income that is effectively connected with US trade or business)
  • W-8EXP (used by non-U.S. governments or other tax-exempt entities to certify they’re a beneficial owner or a financial account-holder)
  • W-8IMY (used by non-U.S. entities to certify they’re an intermediary or flow-through entity receiving payments on behalf of another person)

Choosing the right form will depend on where you live, whether you’re an individual or entity, and other specifics. Since Udemy is unable to provide tax advice, we recommend that you consult with a tax advisor to ensure you’re using the right form and entering information correctly.

 

Eliana Cerna

Udemy Community 

Hi Eliana,

Thanks for your response, I posted here to get help from Indian Udemy Instructers .

Hi Eliana,

 

Thank you for your response. May I kindly check. What will Udemy do with the withholding tax? Will it pay the US IRS the tax that is withheld from instructors, especially foreign non-US instructors? 

 

Please advise. Thank you.

 

regards

Daniel

ElianaC
Community Moderator
Community Moderator

Hi @DanielL For both U.S. and non U.S. instructors, the relevant taxes withheld from sales to US students are paid to the IRS on a monthly basis.

For India, it is 15%. Make sure to set the right percentage as in India, while filing Income Tax, you can add details related to this and get benefit under the Double Taxation treaty.

Hi Zealvora,

 

Thanks for your reponse, Yes currently its 15 %  for me. I was checking if any posibility to reduce it to 0%.

Could you please let me know how can we avail benefits under the double taxation treaty?

Thanks in advance!!

Hey, @zealvora I am a new instructor from India and have started making courses for udemy but the thing is I am being charged 30% taxes on the payout. Can you please help me out with this?

Bella
Community Moderator
Community Moderator

Hi @harshkumarkhatri, have you reached out to our team at instructorsupport@udemy.com yet? They will be able to clarify this for you. You can also find some helpful information about withholding tax here

 

Bella Almeida

Udemy Community

As of now, 15% is the only option however since there is a double taxation treaty, you can reduce your tax since a certain amount of tax was already deducted in the US. 

 

To avail benefits under the Double taxation treaty, you need to collect the 1042-S form that Udemy sends to instructors and give it to a CA.  Not all CA's are familiar with this, so you might have to look for a consultant.

 

 

 

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