Like any business, we’re required to comply with tax laws. When you earn funds on Upwork, you’re also required to follow the tax regulations that apply to you.
Starting with tax reporting for the calendar year 2024, Canada’s tax directive, Reporting Rules for Digital Platform Operators (referred to in this article as RDPO), imposes tax reporting obligations on online marketplaces. For freelancers based in Canada, we are required to report to the Canada Revenue Agency (CRA) on all payments made to you, regardless of the number of transactions or amount.
We are required to report this information annually. Transactions from January 1 to December 31 must be submitted in January of the following year.
What do freelancers need to do on Upwork for RDPO?
Make sure the details on your tax information page are complete, accurate, and up to date, including your location or residence and your Tax Identification Number (TIN). Providing valid tax information is required by RDPO regulations.
Note:
If your tax information is not entered or not valid, it will result in limitations on your account, including restrictions on withdrawing funds or other limitations.
How to view your tax form
We’ll notify you by email and with a notification banner when your RDPO tax form is ready, with a link to your Tax forms.
You can also go to your Tax forms page to view it at any time once it’s ready. Just select Tax forms in the drop-down menu under Manage Finances on the main navigation bar.
What it contains
Your RDPO tax form will contain your identifying information, all your Upwork transactions for the reporting period, and your bank information, including:
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Total of net earnings minus refunds: Net earnings are your total earnings after all refunds, taxes, fees, and commissions are deducted
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Total fees and commissions: This includes all payments you make to Upwork, such as Connects purchases, payment transfers, and freelancer service fees, for example
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Total taxes: This includes your country's income taxes, withholding taxes, and any other taxes that Upwork must collect in order to comply with local tax laws
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Total number of transactions: This includes all earnings transactions and indicates the total amount of transactions in the reporting period
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Bank account information: This includes your bank account’s name, type, identifier, and number for accounts where your payment withdrawals from Upwork are deposited. If you use Payoneer or PayPal, we will include information for those accounts
Note:
All figures in RDPO tax forms that you receive from us will be listed in USD.
If you are located in Canada and had income on Upwork during the reporting period, you are eligible to receive an RDPO tax form. For services, there is no minimum number of transactions or earnings to qualify for RDPO reporting.
You must complete the appropriate form (Form W-8BEN, W-8BEN-E, or W-9) and update your tax residence in order for us to determine whether you live in Canada. We cannot send you an RDPO tax form without a Canadian tax residence.
Disclaimer:
This article is meant for general information only and not to be considered tax advice. We strongly encourage you to consult your country’s tax authority or your tax advisor with questions related to your specific situation.
Frequently Asked Questions
The Reporting Rules for Digital Platform Operators (referred to in these FAQs as RDPO), is a Canadian law that focuses on money people make for providing services on digital platforms. This law makes it simpler for local tax authorities to collect the right amount of taxes.
For people earning on platforms like Upwork — freelancers or agencies in Canada — RDPO requires you to share how much money you make on the platform. It's part of Canada’s effort to make sure everyone follows the same reporting requirements for taxes.
Canada’s Reporting Rules for Digital Platform Operations require that you provide valid and accurate tax information. Ensuring we have the correct tax residence address and the Tax Identification Number (TIN) on file allows us to correctly file your RDPO tax form as required by Canadian tax authorities. If your tax information is not valid, it will result in limitations on your account, including restrictions on withdrawing funds and other limitations.
If you’re a freelancer or business with financial activity on Upwork during the reporting period, and you are located in Canada or its territories, you are eligible to receive a RDPO tax form.
No, there is no minimum for income from services you provide through Upwork’s platform, and all transactions have to be reported.
Please check to make sure you have entered all of your tax information correctly. If it is correct but you just recently entered it, it may take some time for your account to reflect the information as our tax team validates the information you have provided.
The time it takes to validate tax information depends on several factors. Please allow up to one week processing time after submission.
We will notify you by email and banner notification when your RDPO tax form is ready to view and download. You can also check by navigating directly to your account's Tax forms.
We are required to report this information annually. Transactions from January 1 to December 31 must be submitted in January of the following year.
You’ll need to make sure that your tax address is up to date and that you have completed a W-8BEN, W-8BEN-E, or W-9 with a valid Tax Identification Number (TIN). You can make updates on your account's Tax Information page.
You can find your RDPO tax form in your Tax forms when it is ready.
For future reference, you can find the link to your tax forms in the drop-down menu of the main navigation bar under Manage Finances.
RDPO contains financial information about your activities on Upwork, including your earnings, fees, taxes, transactions, and bank account information.
RDPO impacts residents of Canada and its territories who earn revenue on Upwork. If your primary residence is not in Canada or its territories, RDPO does not apply to you. If you move your primary residence into or out of Canada, you must update your account's tax information.
We cannot provide individual tax guidance. Please consult your country’s tax authority or your tax advisor with questions related to your specific situation.
You may be able to find information about your country’s TIN here. If you have questions about your number, you will need to consult a tax advisor in your country or contact your local tax authority.
We will report the tax information you provide, your earnings, and your bank information to the relevant Canadian tax authorities.
