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Author Topic: Claiming Back USA Withholding Tax  (Read 2105 times)

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Microstock Man

  • microstockman.com

« on: November 29, 2014, 20:14 »
0
Does anyone know if it is possible, and if so how, to claim back the 5% or whatever that gets withheld from sales made in the USA?

After a bit of Googling, it seems that if I buy foreign shares for example, then I can claim back some of the withheld tax. Does something similar apply in our case as stock photographers?

After a few years of doing this, and the majority of sales coming from the US, it could be worth pursuing if it is possible.

Thanks for your help


Microstock Man

  • microstockman.com

« Reply #1 on: December 01, 2014, 01:49 »
0
Anyone?

« Reply #2 on: December 01, 2014, 06:02 »
0
Anyone?

I'm interested, if it is not too complex. Do you have any links, info?

« Reply #3 on: December 01, 2014, 13:33 »
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It's different in each country. Consult your tax lawyer? Here I think I can claim 40% back. Up to 60,000THB. Never bothered with it.

« Reply #4 on: December 01, 2014, 13:50 »
0
It's different in each country. Consult your tax lawyer? Here I think I can claim 40% back. Up to 60,000THB. Never bothered with it.

I think, but may be wrong, that two very different scenarios apply wrt the question raised in this thread:

1. In the first instance there is the question of whether tax paid to a foreign govt (e.g. the USA) can be offset against local taxes. i.e. whether our own govts will agree not to tax us again on money which the USA has already taxed. That is certainly a local question. Clearly it is unlikely that there would be any way of making up the difference between a lower rate and the US 30% rate. And those who do not have to pay local income taxes but who are now subject to the 30% US tax would have nothing to gain from this.

This question applies equally to those who will have to pay the full 30% and those in countries with agreements resulting in an effective withholding rate which is anything > zero %.

2. There is also the separate question around the potential possibility of submitting a US tax return and claiming back (from the USA) any money which falls under whatever earnings thresholds may apply.
« Last Edit: December 01, 2014, 14:50 by bunhill »

Micky_Mango

« Reply #5 on: December 01, 2014, 16:24 »
0
It's different in each country. Consult your tax lawyer? Here I think I can claim 40% back. Up to 60,000THB. Never bothered with it.

I think, but may be wrong, that two very different scenarios apply wrt the question raised in this thread:

1. In the first instance there is the question of whether tax paid to a foreign govt (e.g. the USA) can be offset against local taxes. i.e. whether our own govts will agree not to tax us again on money which the USA has already taxed. That is certainly a local question. Clearly it is unlikely that there would be any way of making up the difference between a lower rate and the US 30% rate. And those who do not have to pay local income taxes but who are now subject to the 30% US tax would have nothing to gain from this.

This question applies equally to those who will have to pay the full 30% and those in countries with agreements resulting in an effective withholding rate which is anything > zero %.

2. There is also the separate question around the potential possibility of submitting a US tax return and claiming back (from the USA) any money which falls under whatever earnings thresholds may apply.

Certainly in the UK there is a principal that you only pay tax once on income. If you are taxed in the US at 30% you don't pay tax again on that income. Your accountant will advise you on this.

« Reply #6 on: December 01, 2014, 17:34 »
+1
Certainly in the UK there is a principal that you only pay tax once on income. If you are taxed in the US at 30% you don't pay tax again on that income. Your accountant will advise you on this.

It would not be an issue for someone resident for tax in the UK - since the UK tax treaty with the US means that the withholding rate is 0%.

In non treaty states, not being double-taxed is all very well and good - but anyone who would have been taxed at less than 30% (or not at all) will be worse off.

(No taxation without representation is a good basic principle IMO.)

Microstock Man

  • microstockman.com

« Reply #7 on: December 01, 2014, 19:38 »
0
It's different in each country. Consult your tax lawyer? Here I think I can claim 40% back. Up to 60,000THB. Never bothered with it.

I think, but may be wrong, that two very different scenarios apply wrt the question raised in this thread:

1. In the first instance there is the question of whether tax paid to a foreign govt (e.g. the USA) can be offset against local taxes. i.e. whether our own govts will agree not to tax us again on money which the USA has already taxed. That is certainly a local question. Clearly it is unlikely that there would be any way of making up the difference between a lower rate and the US 30% rate. And those who do not have to pay local income taxes but who are now subject to the 30% US tax would have nothing to gain from this.

This question applies equally to those who will have to pay the full 30% and those in countries with agreements resulting in an effective withholding rate which is anything > zero %.

2. There is also the separate question around the potential possibility of submitting a US tax return and claiming back (from the USA) any money which falls under whatever earnings thresholds may apply.

This bold part is more the question I was wondering about. Thanks for your responses so far :)

« Reply #8 on: December 03, 2014, 03:59 »
0
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