![]() Any amounts due to the US Internal Revenue Service may be withheld from your available balance or future payments. Without your US tax ID or certification of non-US tax residency status, 24% will be due on all payments you receive, including those you received before reaching $600 USD. Is backup withholding also due on the first $600 USD I receive? To give you some time to confirm your US taxpayer status and stay compliant with US tax laws, we'll place your payments on a Tax ID for at least 60 days once you receive $600 USD or more for goods and services.Īfter this 60-day grace period, we'll start sending 24% of your payments to the US Internal Revenue Service as backup withholding for any potential income tax due. Please make sure you've updated your PayPal app to the latest version to view your tax holds. You can learn more about this US tax law on the US IRS website. This 24% is sent to the US Internal Revenue Service as backup withholding for any potential income tax due on those payments. Once you reach $600 USD (or the equivalent in local currency) or more, US tax laws also require us to withhold 24% of your payments when we don't have your US Tax ID, such as an SSN, Employer Identification Number or Individual Taxpayer Identification Number. When you're paid for goods and services, the US Internal Revenue Service considers this reportable income and we're required to send you US tax Form 1099-K when you receive $600 USD (or the equivalent in local currency) for goods and services in a year.
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