Withholding tax (WHT)

Due to requirements in some local markets, withholding taxes (WHT) may apply to developers offering Google Play Store app and in-app purchases made via direct carrier billing (DCB) in those countries.

We strongly recommend 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 & country-specific guidelines

Kuwait

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).

Saudi Arabia

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).

Sri Lanka

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).

Frequently asked questions

Why is this change occurring? Why now? Why didn’t Google pass this cost on from the beginning?

The regulatory environment is frequently changing in local markets, we are constantly making efforts to ensure all parties are in compliance with local requirements and implementing the changes as needed. Withholding taxes are taxes on developers’ income from sales to users in these local markets. Until now, Google has covered this cost for developers while we put measures in place to be able to pass the cost of the applicable obligation on to developers.

When will I start to incur these charges?

In the first statement of the month when changes were implemented for the specific country. For example, changes implemented on August 1, 2019, will impact your August earnings.

Will the withholding tax show up as a line item on my reporting? Where can I see it?

Yes. it will show up as a line item on the developer earnings report as “Direct Carrier Billing Withholding Tax”.

Will I owe Google back taxes for the amount Google covered historically?

No.

Can I opt out of having taxes withheld?

No. These taxes arise on your income from sales to users in this country.

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