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Request a credit for Withholding Tax on your account (Global customers)

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Note

If your organization is based in India, some of the information in this article is slightly different.

Some customers receive Web Direct (Azure and Microsoft 365) invoices billed by a Microsoft entity located in a foreign country/region. If your organization makes cross-border payments to that entity, the Tax Authority in your country/region might require you to withhold part of the cross-border payment as withholding tax (WHT). If you withheld taxes as required by your Tax Authority when remitting payments to Microsoft, this article explains the process for claiming a credit for the tax withheld.

Customers in India receive Web Direct (Azure and Microsoft 365) invoices billed by Microsoft Regional Sales Pte Ltd. Singapore (MRS) and make cross-border payments to Singapore to settle the invoice. If you withheld taxes when remitting the payment, this article explains the process for claiming a credit for the Withholding Tax (WHT) in your account with MRS.

For invoice pay customers who pay by wire transfer

If you withheld tax when remitting payment and deposited the withheld tax with the relevant Tax Authority, you must submit a WHT request to clear the outstanding balance in your account.

For customers in India, if you withheld tax when remitting payment to MRS and deposited the withheld tax with the Income Tax Department, you must submit a WHT request to settle the tax amount withheld in your account.

Your WHT request must include the following items:

  • A completed copy of the Withholding Tax Credit Form (filled out by the customer)
  • Customers in India: A digitally signed TDS Certificate (Form 16A) issued by the Indian Income Tax Department (provided by the customer)
  • All other customers: A signed or scanned copy of the Withholding Tax Certificate or Receipt

Submit the WHT request by opening a ticket with Microsoft support.

For customers who pay by credit card

If your payment method is a credit card and you made a full payment to Microsoft, and also paid WHT to the relevant Tax authority, or Income Tax Department in India, you must submit a WHT request to claim the refund of the tax amount.

Your WHT request must include the following items:

  • A completed copy of the Withholding Tax Credit Form (filled out by the customer)
  • Customers in India: A digitally signed TDS Certificate (Form 16A) issued by the Indian Income Tax Department (provided by the customer)
  • All other customers: A signed or scanned copy of the Withholding Tax Certificate or Receipt

Submit the WHT request by opening a ticket with Microsoft support.

Important

  • Customers can only submit a request for an adjustment or refund of the WHT amount after paying the invoice.
  • The invoice amount on the Withholding Tax Credit Form must match the invoice amount identified in the Withholding Tax Certificate or Receipt, or the TDS certificate in India. If the invoice amount is different between the two forms, you must specify the reason for the difference in the Withholding Tax Credit Form. This information is checked by the review team, who might ask clarifying questions, if required.
  • Withholding Tax Certificate, Receipt files, or TDS certificates must be in one of the following file formats: .PDF or image only (.JPEG, .PNG, or .GIF). Additionally, file names must not contain spaces or special characters. File size cannot exceed 1 MB.

After you submit the request, it goes into the approval process where it's either approved for completion or is sent back to you for correction.

If there's a problem with your request, the review team might require corrections to the withholding amount or replacement of the Withholding Tax Certificate, Receipt, or TDS Certificate. You must resubmit the request before it can be approved. The review team either approves the request or asks for more changes.

Timelines to submit the TDS Certificate together with the Withholding Tax Credit Form

The following table shows the due dates and timelines to submit digitally signed TDS Certificate (Form 16A) forms for each quarter.

Quarter Period Due date for issuance of TDS Certificate (Form 16A) Extended timelines to submit Form 16A together with the Withholding Tax Credit Form
1 April - June 15-Aug 31-Aug
2 July - September 15-Nov 30-Nov
3 October - December 15-Feb 28-Feb
4 January - March 15-Jun 30-Jun

Approved requests

For customers paying by wire transfer: Approved WHT requests are settled against the unpaid portion of the invoice amount reflected in Withholding Tax Credit Form.

After your claim is approved, it's reflected in the next billing cycle. The WHT amount paid is included in the payment section of your next invoice. The amount is also displayed under the paid amount in the customer portal.

For customers paying by credit card: After your claim is approved, your overpayment is refunded to your credit card.

Important

  • If changes are required, the approval process might take longer because of the corrections that must be made and then resubmitted.
  • If you have questions about the WHT request process, please open a ticket with Microsoft support.