Submit withholding tax
Appropriate roles: Account admin | Billing admin
Avoid double taxation for Cloud Solution Provider program partners
Certain countries or regions might require Cloud Solution Provider program (CSP) partners to pay taxes both to Microsoft and their local government, leading to double taxation. However, you can avoid double taxation by following specific steps to offset the taxes paid locally by submitting a withholding tax (WHT) request.
Key points
Double taxation issue
- CSP partners might receive invoices from Microsoft that include taxes.
- If these partners also pay taxes to their local government, they face double taxation unless they take action.
Solution: Offset taxes via withholding tax request
- First, determine whether the taxes listed on your Microsoft invoices match the tax amount paid to your local government.
- Avoid double taxation by submitting a withholding tax (WHT) request.
- Include the following documents in your request:
- A signed or scanned copy of the tax certificate/receipt from the local authority where the taxes were paid.
- A completed Withholding tax credit form (if applicable).
Important considerations
- Submit withholding tax requests for partially paid invoices only: Ensure your withholding tax request is for invoices that are partially paid. For more information about submitting withholding tax, see the step-by-step process.
- Different procedures are required for fully paid or unpaid invoices.
Steps to avoid double taxation
Identify eligible invoices
- Check your invoices to determine which ones are eligible for a withholding tax request.
Gather required documents
- Complete the withholding tax credit form.
- Obtain a signed or scanned copy of your local tax certificate/receipt.
Submit the withholding tax request
- For partially paid invoices, submit the withholding tax request directly.
- For fully paid or unpaid invoices, open a support ticket with Microsoft and attach the required documents. For more information, see how to submit withholding tax for fully paid or unpaid invoices.
Understand timelines and deadlines
- Be aware of any deadlines for submitting withholding tax requests to ensure timely processing.
- Late submissions might affect your ability to claim tax offsets, so it's crucial to act promptly.
Monitor the process
- Track the status of your withholding tax request through Partner Center.
- Verify the cleared amounts on the billing history or billing overview (NCE) pages.
Steps for fully paid or unpaid invoices
For invoices that are either fully paid or unpaid, follow these steps:
Open a support ticket with Microsoft: To initiate the proceess, go to opening a ticket with Microsoft support.
Provide necessary documentation:
- Withholding tax credit form: Complete the withholding tax credit form and include it in your support ticket.
- Tax certificate or receipt: Attach a signed or scanned copy of the withholding tax certificate or receipt issued by the local tax authority.
Viewing cleared amounts
Once the process is completed and your withholding tax request is approved, view the adjusted amounts in Partner Center:
- Billing history page: Check under last payment of the legacy invoice to see the cleared amounts.
- Billing overview (NCE) page: Look under paid amount of the new commerce invoice for the adjustments made.
Need assistance?
If you need help identifying eligible invoices, filling out forms, or opening a support ticket, contact our support team.
By following these steps and providing the necessary documentation, you can effectively manage your tax obligations, avoid double taxation, and ensure smooth operations. This process not only helps in maintaining financial compliance but also fosters a transparent and efficient business relationship with Microsoft.
Submit a tax withholding request
Sign in to Partner Center and select the Billing workspace.
To upload a withholding tax receipt for legacy invoices:
Go to the Billing history page and select Submit new next to the invoice you want to upload the receipt. The Submit new link takes you to the Tax withholding request – new page.
To upload a withholding tax receipt for new commerce invoices:
Go to the Billing overview (NCE) page and select the invoice you want to upload the receipt. Select New request to go to the Tax withholding request – new page.
Review the invoice details before you submit it.
Enter the Withholding total under Tax withholding details.
Withholding total is the amount you expect to be credited.
Attach a tax certificate.
To request tax withholding, attach a digital copy of your tax certificate. Your local tax agency issues this certificate when you pay your taxes. The invoice tax amount on the certificate must match the amount on your request.
Send a paper copy of your tax withholding request if you're located in Germany. See German tax withholding.
Important
- Amount totals must match the invoice line item from the attached tax certificate.
- The attached digital copy of tax certificate files must be a PDF, JPEG, PNG, or GIF.
- File names must not contain spaces or special characters.
- File sizes can't exceed 1 MB.
Submit the tax withholding request.
Note
Key points
If your request is approved:
- You don't need to take further action.
- The withholding tax is offset, allowing you to continue operations without the worry of double taxation.
If your request is returned for corrections:
- Make necessary adjustments to the withholding tax amount or replace the tax certificate if there are issues.
- Resubmit the updated request after making corrections.
Checking the status of your requests:
To monitor the progress of your withholding tax requests:
Navigate to the Withholding tax page of the invoice.
Access this page from either:
- The Billing overview (NCE) page for new commerce.
- The Billing history page for legacy.
The Billing history page displays the status of your requests, allowing you to track whether they're approved, pending, or returned for corrections.
Update request and resubmit it
Sometimes, the review team might need you to correct and resubmit your request if there's missing information or errors. In such cases, the status changes to Pending partner action.
To correct and resubmit the request, follow these steps:
Sign in to Partner Center and select the Billing workspace.
To review or update a request for a legacy invoice:
- Select Billing history page.
- Look for the tax withholding requests.
- Requests needing your attention is marked as "Pending partner action."
- Select the tax withholding request ID and status.
To review or update a request for a new commerce invoice:
- Go to Billing overview (NCE) page.
- Select the invoice you want to update.
- Select New request to see the request details.
Under Status select Update and resubmit.
Read the reviewers' comments that describe what needs to be changed in the certificate or withholding tax amounts.
Make the corrections by either resubmitting an updated certificate or adjusting the withholding tax amounts accordingly.
Submit the request.
The review team evaluates your resubmitted request promptly. They either approve it or ask for more changes. If more changes are needed, they update the status of your request accordingly.
Approved requests
You see the approved amounts on the "Billing history" or "Billing overview (NCE)" page, depending on whether your invoice is legacy or new commerce. These amounts appear in the Paid amount or Last payment column next to the corresponding invoice.
Remember these key points:
Approved tax withholding requests are applied to your invoice.
Completed requests are processed within 10 business days.
We aim to provide a seamless and clear experience throughout this process.
Important
Previous invoices aren't regenerated. Instead, the clearance amount is directly applied to the outstanding balance from the previous month's payments, lowering the total amount due.
Processing withholding tax requests typically takes about two business days if the tax certificate and amount are correct. If corrections are needed, the processing time might extend, depending on how quickly the adjustments are made and resubmitted.
For inquiries about withholding tax credit requests, contact Partner Support with the request ID.
German tax withholding
Partners who submit German tax withholding requests must mail hard copies of their withholding tax certificate to the following address:
ATTN: EOC Tax Team Marianne Gannon Microsoft EMEA Operations Centre One Microsoft Place, South County Business Park Leopardstown, Dublin 18, Ireland
Questions and assistance about tax withholding requests
Partners should submit withholding tax receipts using the outlined process, not through support requests. If you have questions about tax withholding submissions, you can submit a support request. When submitting a new support request, be sure to provide the Request ID.
Important
Partners shouldn't contact support if their request status shows Completed. This status can be found on the Withholding tax page. The Paid amount or Last payment reflects the tax withholding amount within 10 business days after the request is Completed.
Important
If you receive multiple invoices in a month, combine their withholding tax receipts into one document and submit it as a single receipt in Partner Center. Ensure to include a note in the comments section to facilitate efficient processing.