Due to requirements in some local markets, withholding taxes (WHT) may apply to developers offering Google Play Store app and in-app purchases made in those countries.
We strongly recommend that developers consult with a professional tax advisor to understand your individual tax implications in the affected markets and for guidance on the potential impact on your business.
Region and country-specific guidelines
If you offer Google Play Store app and in-app purchases made via any available form of payment by customers in Brazil, Google or its payment processor partners will deduct the full cost of Brazilian withholding taxes (WHT), equal to 25% of the customer purchase price, from your revenue share payments.
Withholding taxes are applicable to non-local developers only, however if you are a Brazilian developer paid in non-BRL currency, withholding taxes will be deducted from your revenue share payments. You can migrate to a BRL account by following the steps detailed here, and find additional details about currency support for Brazilian Real and required taxes.
As part of our service to developers, Google is constantly monitoring changes to tax regulation and will modify/notify developers of changes to Google’s approach accordingly.
If you offer Google Play Store app and in-app purchases made via direct carrier billing (DCB) by customers in Egypt, beginning March 2020, Google or its payment processor partners will deduct up to 20% of withholding tax (WHT).
Starting on December 1, 2020, if you're located in India and offer Google Play Store app and in-app purchases, Google will deduct Indian withholding taxes (WHT) from your proceeds and deposit such WHT with the Government of India. The amount of such WHT is equal to:
- 1% (which is temporarily reduced to 0.75% until March 31, 2021) of the customer purchase price (excluding India GST) from proceeds due to you from Google, if you have provided your Permanent Account Number (PAN) to Google; or
- 5% of the customer purchase price (excluding India GST) from proceeds due to you from Google, if you have not provided your PAN to Google.
To apply the correct rate of withholding tax, Google is required to collect your Indian PAN. Here’s how you can provide Google with your PAN:
- Open Play Console and go to the Payments profile page (Setup > Payments profile).
- In the "Settings" section, click Manage settings.
- Scroll down to "India tax info" and click the pencil icon .
- Enter or update your PAN.
- Click Save.
If you offer Google Play Store app and in-app purchases made via direct carrier billing (DCB) by customers in Kuwait, beginning August 1, 2019, Google or its payment processor partners will deduct up to 5% of withholding tax (WHT).
If you offer Google Play Store app and in-app purchases made via direct carrier billing (DCB) by customers in Saudi Arabia, beginning August 1, 2019, Google or its payment processor partners will deduct up to 8% of withholding tax (WHT).
As of December 1, 2019, Google or its payment processor partners stopped deducting any WHT from purchases made via DCB in Saudi Arabia. Any amounts deducted relating to the December 2019 period and after were credited back to developers in October 2020.
If you offer Google Play Store app and in-app purchases made via direct carrier billing (DCB) by customers in Sri Lanka, beginning August 1, 2019, Google or its payment processor partners will deduct up to 10% of withholding tax (WHT).
Under the local Taiwan tax legislation, Google is obligated to withhold tax on payments made to you, where such payments are associated with sales you have made to end users in Taiwan through the Play Store. The ruling, issued in January 2018, was retrospectively effective from January 1, 2017. Google has been actively engaging the Taiwan tax authorities on this ruling and only received clarification recently. No Taiwan withholding taxes had been applied on our payments to you to date, as we were pending clarification from the Taiwan tax authorities.
This affects developers who do not possess either:
- A Taiwan VAT ID (8 digit numeral number) or
- A foreign TIN registered in Taiwan
If you are unable to provide any Taiwan VAT ID or tax registration in Taiwan, Google is obligated to apply a 3% withholding tax on the payment made to you for all of your transactions with users in Taiwan. In addition, if Google is applying the withholding tax, Google will not be able to provide a specific withholding tax certificate issued by the Taiwanese tax authorities in your name.
Starting in August 2020, Google will deduct 3% withholding tax on your share of revenue derived from the sale to end users in Taiwan. Please refer to the table below for more details.
How will the deduction be applied?
|How will it be reflected in Google Play Console?|
|Jan 2017–Dec 2019||
Aggregated amount to be deducted in equal portions up to 6 months starting from August payout to minimize impact on your cash flow
Taiwan Withholding Tax (2017–2019)
|Jan 2020–Jul 2020||Aggregated amount to be deducted in equal portions up to 6 months starting from August payout to minimize impact on your cash flow||
Taiwan Withholding Tax (Jan–Jul, 2020)
Aug 2020 and onwards
Deduction from monthly payout
Taiwan Withholding Tax
If you have any questions or require assistance, you can contact Google Play developer support for help.
The following withholding tax documents are available for download from the Download financial reports page (Download reports > Financial) in Play Console. You must have the View financial data, orders, and cancellation data survey responses permission.
Google will provide a withholding tax statement for the year ended December 31, 2020, which reflects the withholding rate and the amount deducted from your revenue proceeds by country. In addition, a historical statement has been prepared for sales to customers with legal addresses in Taiwan for the years 2017-2019.
These information statements are not official government documents and have been prepared by Google for your informational purposes only. They are not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Please consult your tax adviser for specific advice regarding the information statement.
India withholding tax certificates (Form 16A) are provided quarterly for developers with a merchant account based in India. The details (e.g., PAN, the legal name of the PAN holder, etc.) you provide in your payment profile must be correct.
These certificates will be available 15 days after the filing date for the quarter. For example, the Q4 2020 filing date is January 31st, 2021, so certificates will be accessible from February 15th, 2021.
Frequently asked questions
Global questionsWhy is the developer responsible for these charges?
Withholding taxes are taxes on developers’ earnings from sales to users in these local markets.
Yes, the WHT will show up as a line item on the developer’s earnings report. The WHT will be shown as:
- Direct carrier billing (DCB) transactions in SA, LK, KW, EG: “Direct Carrier Billing Withholding Tax”
- All form of payment transactions in BR: “BRAZIL_IRRF" and "BRAZIL_CIDE"
- All form of payment transactions in TW: "TAIWAN_WITHHOLDING_TAX_2017_2019," "TAIWAN_WITHHOLDING_TAX_2020," and "TAIWAN_WITHHOLDING_TAX"
No. These taxes arise on your income from sales to users in this country or region.
India-specific questionsWhat is a PAN?
A permanent account number (PAN) is a ten-character alphanumeric identifier, issued by the Indian Income Tax Department. It's considered as the tax identification number for income/direct tax purposes.
Please note that the name on the withholding tax certificate/Form 16A is based on the name belonging to the PAN that you have provided Google, as is available with the Indian Income tax department. Google cannot amend the name shown on the certificate, which is generated based on records of the Indian Income tax department.