Set up your payout account and tax forms

In order to receive money from offer sales in the commercial marketplace, you need to set up your payout account and fill out the necessary tax forms in Partner Center.

If you only plan to list free offers (and don't plan to offer in-app purchases or use Microsoft Advertising), you don't need to set up a payout account or fill out any tax forms. If you change your mind later and decide you do want to sell offers (or add-ons), you can set up your payout account and fill out tax forms at that time. You won't be able to submit any paid offers or add-ons until your payout account and tax profile have been completed.

Note

In certain markets, publishers can only submit free offer. If your account is registered in one of these markets, you will not have the option to set up a payout account.

After you have set up your account, there are two things you need to do before you can sell offer (or add-ons) in the commercial marketplace:

Note

For details about how and when you will be paid for the money your offer make, see Getting paid in the commercial marketplace.

Tax forms

Fill out your tax forms

First, you'll need to create a tax profile and assign it to the programs you participate in. You can create your tax profile for the commercial marketplace by completing the following steps:

  • Specify your country/region of residence and citizenship.
  • Fill out the appropriate tax forms.

You can complete and submit your tax forms electronically in Partner Center; in most cases, you don't need to print and mail any forms.

Important

Different countries and regions have different tax requirements. The exact amount that you must pay in taxes depends on the countries and regions where you sell your offer. See the Microsoft Azure Marketplace Publisher Agreement to find out for which countries/regions Microsoft remits sales and use tax on your behalf. In other countries/regions, depending on where you are registered, you may need to remit sales and use tax for your offer sales directly to the local taxing authority. In addition, the app sales proceeds you receive may be taxable as income. We strongly encourage you to contact the relevant authority for your country or region that can best help you determine the right tax info for your commercial marketplace activities.

  1. In Partner Center, select the Settings gear icon in the top-right corner, then Account settings.

  2. In the left navigation menu, select Payout and tax, then select Payout and tax assignments.

  3. Select the program and seller ID combination for which you want to configure tax information.

  4. If you would like to use an existing tax profile, select it from the dropdown. Otherwise, select Create new profile and press Submit. You will be taken to the tax profiles page.

  5. Click the Edit button to edit your tax information.

  6. Select the appropriate radio button, and select your country/region if prompted. This step determines the Microsoft business entity that will be used to make payouts on your account.

  7. Depending on your selections in step 6, you will be prompted to provide tax information required for your country/region.

    Note

    Regardless of your country/region of residence or citizenship, you must fill out United States tax forms to sell any offer or add-ons through the commercial marketplace. Publishers who satisfy certain United States residency requirements must fill out an IRS W-9 form. Other publishers outside the United States must fill out an IRS W-8 form. You can fill out these forms online as you complete your tax profile.

Withholding rates

The info you submit in your tax forms determines the appropriate tax withholding rate. The withholding rate applies only to sales that you make into the United States; sales made into non-US locations are not subject to withholding. The withholding rates vary, but for most publishers registering outside the United States, the default rate is 30%. You have the option of reducing this rate if your country/region has agreed to an income tax treaty with the United States.

Tax treaty benefits

If you are outside the United States, you may be able to take advantage of tax treaty benefits. These benefits vary from country/region to country/region, and may allow you to reduce the amount of taxes that the commercial marketplace withholds. You can claim tax treaty benefits by completing Part II of the W-8BEN form. We recommend that you communicate with the appropriate resources in your country or region to determine whether these benefits apply to you.

Note

A United States Individual Taxpayer Identification Number (or ITIN) is not required to receive payments from Microsoft or to claim tax treaty benefits.

Payout account

A payout account is the bank account to which we send the proceeds from your sales. You can view all payment accounts that you have entered on the Profile page.

Note

In some markets, PayPal can be used for your payout account. To find out if PayPal is supported for a specific market, see Payment thresholds, methods, and timeframes and the PayPal info below for more details.

Create a payment profile

  1. In Partner Center, select the Settings gear icon in the top-right corner, then Account settings.

  2. Underneath the Payout and tax heading, select Payout and tax profile assignment.

    Note

    Because this is sensitive info, you may be prompted to sign in again.

  3. Select the payment method you would like to configure.

  4. Select an existing payment profile, or click Create a new payment profile to create a new profile for the chosen payment method.

Create a bank-based payment profile

If you elected to use a bank account to receive payouts, you'll complete the following process to configure your bank account.

  1. On the Bank Profile page, provide the required information about your bank.

  2. Provide your bank account details.

    Note

    The fields you use to provide your account info accept only alphanumeric characters.

  3. Provide beneficiary details.

  4. Back on the Profile assignment page, select the currency you would like us to use when we issue your payouts.

    Warning

    Make sure your bank accepts the payout currency you select.

  5. You will need to select a payment profile for each program you participate in, though you can use the same profile for multiple programs.

  6. Click submit to save your changes.

    Note

    Microsoft may take up to 48 hours to validate the information in your profile. When this process is complete verification status will show Complete

To ensure your payout is successful, make sure:

  • The Account holder name entered for your payout account in Partner Center must be the exact same name associated with your bank account. For example, if your bank account name contains a middle name, add a middle name to your Account holder name.
  • Payouts are transferred directly from Microsoft to your bank account in USD currency.
  • Bank information entered in Partner Center in Latin characters is translated to Cyrillic characters.

Editing existing payment profiles

You can edit existing payment profiles if you need to make changes or correct any incorrect information.

  1. In Partner Center, select the Settings gear icon in the top-right corner, then Account settings.

  2. Underneath the Payout and tax heading, select Payout and tax profiles.

  3. Your payment profiles will be listed along with their status. Find the profile you wish to edit and click Edit at the far right

Important

Changing your payout account can delay your payments by up to one payment cycle. This delay occurs because we need to verify the account change, just as we did when you first set up the payout account. You'll still get paid for the full amount after your account has been verified; any payments due for the current payment cycle will be added to the next one. See Getting paid in the commercial marketplacefor more info.

PayPal info

In select countries and regions, you can create a payment account by entering your PayPal info. However, before choosing PayPal as a payment account option:

  • Check Payment thresholds, methods, and timeframes to confirm whether PayPal is a supported payment method in your country or region.
  • Review the following FAQs. Depending on your situation, PayPal may not be the best payment account option for you, and a bank account may be preferred.

Common questions about using PayPal as a payment method:

  • What PayPal settings do I need to have in order to receive payments? Ensure that your PayPal account does not block eCheck payments. This setting is managed in PayPal's Payment Receiving Preferences page. See PayPal's account setup page for more info.

  • Is my country/region supported? See Payment thresholds, methods, and timeframes to find out where PayPal is a supported payment method.

  • Does my PayPal account have to be registered in the same country/region as my Partner Center account? No. When you set up a PayPal account, you can accept the default configuration. You shouldn't have any issues with other countries/regions and currencies unless you have blocked payment in some currencies. This setting is managed in PayPal's Payment Receiving Preferences page.

  • Do I have to accept PayPal payments manually? No. PayPal accounts are set by default to require users to accept payments manually, which means if you don't accept the payment within 30 days, it is returned. You can change this setting by turning off "Ask Me" in PayPal's More Settings page.

  • What currencies does PayPal support? See PayPal's support page for the current list

Specific requirements for certain countries/regions

In some countries and regions, additional requirements for payout accounts must be followed. If you are a resident of Pakistan, Russia, or Ukraine, note the following requirements.

Pakistan

Form-R is a Pakistan banking regulatory requirement. It is used to indicate the purpose and reason for receipt of funds from abroad. Therefore, anytime that you are eligible for a monthly payout from Microsoft, you will need to submit a Form-R to your bank before the payout can be released to your account. Contact your local bank branch for instructions on how to obtain a copy of Form-R.

You will need to submit a Form-R to your bank each month that you are eligible for a payout. For example, if you expect to receive a payout every month of the year, you will need to submit a Form-R 12 times (once each month).

Once the payout has been submitted to your bank, you have 30 days to submit a Form-R. If it is not submitted within 30 days, the funds will be returned to Microsoft.

Russia

If you're a publisher who lives in Russia, you may need to provide documentation to your bank before your bank will deposit funds into your account. When you're eligible to be paid, we will provide you with the following documentation in an email message:

To ensure your payout is successful, make sure:

  • The Account holder name entered for your payout account in Partner Center must be the exact same name associated with your bank account. For example, if your bank account name contains a middle name, add a middle name to your Account holder name.
  • Payouts are transferred directly from Microsoft to your bank account in Ruble (RUB) currency.
  • Bank information entered in Partner Center in Latin characters is translated to Cyrillic characters.
  • Payouts must be made to a bank account and not to a bank card.

Ukraine

If you're a publisher who lives in Ukraine, you may need to provide documentation to your bank before your bank will deposit funds into your account. When you're eligible to be paid, we will provide you with the following documentation in an email message:

  • Acceptance Certificate (AC) – contains the amount of payout being transferred to your account.
  • Microsoft Azure Marketplace Publisher Agreement – a signed copy of the publisher agreement that needs to be counter signed.
  • Amendment Agreement (AA) – this document can be used by your bank to help identify your payout funds.

Microsoft provides all three documents when your first payout is attempted. For any subsequent payouts, you will only receive the AC document. Retain the ADA and AA documents in case you need them to receive future payouts from your bank.

Create a PayPal payment profile

If you elected to use a bank account to receive payouts, you'll complete the following process to configure your bank account.

  1. On the PayPal page, provide the required information about your PayPal account.

  2. Provide your PayPal account details.

    Note

    The fields you use to provide your account info accept only alphanumeric characters.

  3. Provide beneficiary details.

  4. Back on the Profile assignment page, select the currency you would like us to use when we issue your payouts.

  5. You will need to select a payment profile for each program you participate in, though you can use the same profile for multiple programs.

  6. Click submit to save your changes.

Next steps

Getting paid in the commercial marketplace