If your country requires you to withhold taxes from payments to Anthropic, you must still pay Anthropic the full contracted amount on top of the taxes you remit to your government, including any taxes owed on that additional payment itself.
This analysis describes what Anthropic's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
The gross-up obligation means that in jurisdictions with withholding tax requirements, the Customer's actual cost of using the Services will exceed the listed fee; the obligation compounds because it applies to any taxes on the gross-up payment itself.
Business customers in countries with withholding tax requirements on cross-border service payments must pay Anthropic the full contracted fee plus an additional gross-up amount to cover any withholding, including taxes on the gross-up itself; this can materially increase the effective cost of the Services above the published rate.
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"Fees do not include any taxes, duties, or assessments that may be owed by Customer for use of the Services ("Taxes"), unless otherwise specified in the applicable invoice. Customer is responsible for remitting any necessary withholding Taxes to the relevant authority on a timely basis and providing Anthropic with evidence of the same upon request. For clarity, Customer must pay Anthropic the amount ("Gross-up Payment") that will ensure that Anthropic receives the same total amount that it would have received if no such withholding or reduction by Customer had been required (taking into account any and all applicable Taxes (including any Taxes imposed on the Gross-up Payment)).Excerpt from Anthropic's Commercial Terms
REGULATORY LANDSCAPE: This provision engages international tax treaty law, domestic withholding tax statutes, and OECD transfer pricing guidelines where applicable.
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The gross-up obligation means that in jurisdictions with withholding tax requirements, the Customer's actual cost of using the Services will exceed the listed fee; the obligation compounds because it applies to any taxes on the gross-up payment itself.
Business customers in countries with withholding tax requirements on cross-border service payments must pay Anthropic the full contracted fee plus an additional gross-up amount to cover any withholding, including taxes on the gross-up itself; this can materially increase the effective cost of the Services above the published rate.
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