Author Topic: IRS Withholding Taxes for non U.S. Submitters (Read 41694 times)

Talanis · « **Reply #75 on:** May 28, 2009, 05:57 »

Like many, my sales drop in SS in the last months (to about 50% of what it was) ao add all the hassle to that and it's not worth it. I am considering cancelling my account there. I am also considering more and more going exclusive eith all the crap we got from some sites lately.

Sean Locke Photography · « **Reply #76 on:** May 28, 2009, 06:05 »

Wow, what a mess. I don't understand why the IRS wants 30% just because it flows through an American site. Sorry for you foreigners (to the US).

sharpshot · « **Reply #77 on:** May 28, 2009, 06:06 »

The photoshelter collection site tried bringing this in and it wasn't very popular. I didn't bother doing it then, as I didn't have any sales. The site folded a few months later, SS are nothing like them but this could hit them hard. There is no way I would stay there if I couldn't get the 30% tax back. Here's the thread about the Photoshelter collection.
http://www.microstockgroup.com/general-macrostock/photoshelter-us-tax-requirements-for-non-americans/

leaf · « **Reply #78 on:** May 28, 2009, 06:07 »

Quote from: mjp on May 28, 2009, 04:45

Quote from: leaf on May 28, 2009, 02:03
I would suggest getting those papers in order because it is only a matter of time before the other sites do the same. It isn't as big a job as it appears.

If you qualify for an EIN you can get it over the phone (and the official papers will be sent in the mail) speading things up a bit. IRS number +1-215-516-6999 That is how I got my number a while back when another site needed it.

Then just fill out this
W-8BEN Form Certificate of Foreign Status http://www.irs.gov/pub/irs-pdf/fw8ben.pdf

and your done.

I did not receive a letter from Shutterstock though.. and i am guessing I should have

I haven't seen anywhere telling me where to send the forms and if they just want the W-8BEN or if they want to see the EIN form as well?!

Hi Leaf,

We submit as a company so is the EIN code what we need to fullfil the W-8BEN document? Is there any costs to get that ITIN or EIN code (other than notary documents or similar)?

br, MjP

i can't say for sure what you need as I did it for a personal 'sole proprietor' business but no, I didn't have to pay anything to get the number.

leaf · « **Reply #79 on:** May 28, 2009, 06:08 »

Canada must not have rules like that otherwise iStock would have to do something similar. Shutterstock could always head up to the Great White North

sharpshot · « **Reply #80 on:** May 28, 2009, 06:09 »

Quote from: sjlocke on May 28, 2009, 06:05

Wow, what a mess. I don't understand why the IRS wants 30% just because it flows through an American site. Sorry for you foreigners (to the US).

From what I understand, they don't. That is the penalty level that SS might have to pay. I noticed that SS said in the last line of their email that they may take this after the June payout, not that they will take it.

Sean Locke Photography · « **Reply #81 on:** May 28, 2009, 06:13 »

Says it right in the first post:

"US tax law imposes a 30% withholding tax on US source passive income, such as royalties, that are paid to persons who are not citizens or residents of the United States. US tax law requires the person paying the royalties to withhold the tax and pay it to the US Internal Revenue Service."

melking · « **Reply #82 on:** May 28, 2009, 06:27 »

Quote from: leaf on May 28, 2009, 06:08

Canada must not have rules like that otherwise iStock would have to do something similar. Shutterstock could always head up to the Great White North

That sounds like a great idea!!!

kgtoh · « **Reply #83 on:** May 28, 2009, 06:48 »

"I would suggest getting those papers in order because it is only a matter of time before the other sites do the same. It isn't as big a job as it appears."

Fotolia and Dreamstime are in Europe; Istock is in Canada.

alias · « **Reply #84 on:** May 28, 2009, 06:51 »

Quote from: sjlocke on May 28, 2009, 06:13

Says it right in the first post:

"US tax law imposes a 30% withholding tax on US source passive income, such as royalties, that are paid to persons who are not citizens or residents of the United States. US tax law requires the person paying the royalties to withhold the tax and pay it to the US Internal Revenue Service."

This is one of the reasons why online and basically virtual companies which are used internationally are often much better doing business from well regulated and properly policed, but less bureaucratic, streamlined jurisdictions which are also more tax competitive - ie their govts want businesses to exist on their soil not so that they can levy taxes but because the businesses provide employment locally.

cidepix · « **Reply #85 on:** May 28, 2009, 08:03 »

Keep it coming!

http://www.gopetition.com/petitions/say-no-to-us-taxation.html

borg · « **Reply #86 on:** May 28, 2009, 08:07 »

Ha ha ha!

Topic is locked on SS...

They still want my money to send IRS without my USA green card ...

designalldone · « **Reply #87 on:** May 28, 2009, 08:13 »

Quite a serious letter from SS CEO:

http://submit.shutterstock.com/forum/viewtopic.php?t=62351

peresanz · « **Reply #88 on:** May 28, 2009, 08:15 »

Quote from: designalldone on May 28, 2009, 08:13

Quite a serious letter from SS CEO:

http://submit.shutterstock.com/forum/viewtopic.php?t=62351

Well, I wouldn't say 'serious'... Better say 'rude'

Sean Locke Photography · « **Reply #89 on:** May 28, 2009, 08:20 »

Very rude.

designalldone · « **Reply #90 on:** May 28, 2009, 08:21 »

By 'serious' I meant it doesn't look like he's messing around and is prepared to delete contributor accounts if necessary.

Inga · « **Reply #91 on:** May 28, 2009, 08:21 »

I get the feeling they don't want foreign contributors anymore! It really sounds like that! Especially the really rude reaction by Shutterstock!

Seams I really need to delete my images in the end...

Sean Locke Photography · « **Reply #92 on:** May 28, 2009, 08:22 »

Quote from: designalldone on May 28, 2009, 08:21

By 'serious' I meant it doesn't look like he's messing around and is prepared to delete contributor accounts if necessary.

Shows how much SS values its contributors, I guess...

dunsmore · « **Reply #93 on:** May 28, 2009, 08:24 »

Quote from: sjlocke on May 28, 2009, 08:22

Quote from: designalldone on May 28, 2009, 08:21
By 'serious' I meant it doesn't look like he's messing around and is prepared to delete contributor accounts if necessary.

Shows how much SS values its contributors, I guess...

Looks like iStock are going to be getting more exclusives!

sharpshot · « **Reply #94 on:** May 28, 2009, 08:31 »

Quote from: sjlocke on May 28, 2009, 08:22

Quote from: designalldone on May 28, 2009, 08:21
By 'serious' I meant it doesn't look like he's messing around and is prepared to delete contributor accounts if necessary.

Shows how much SS values its contributors, I guess...

Sorry but you are biased. For most of us this will just mean a few forms, a complete pain but not anything major. I do feel for those who can't get the 30% back, SS should move countries but it is their business. Nobody is going to make me move unless I want to and I respect them if they don't want to.

shutterdrop · « **Reply #95 on:** May 28, 2009, 08:35 »

The IRS regulation has been on the books for a very long time. Treaties between countries to prevent double-taxation have been around for a very long time. Other nations around the world have similiar tax regulation.

I remember all the heat on the forums how we needed change and how O'Banana was going to change the Evil Bush countries. How do like the change Now?

O'Banana and his tax cheaters are enforcing the law so you can't cheat the US big tax socialist government out of taxes. Yes, and the IRS want your private and personally information just in case they need to water-board you for more tax information.
The short is, "Be careful what you wish for." How do you like the O'Banana Now?

Dreamframer · « **Reply #96 on:** May 28, 2009, 08:37 »

I will delete my account as well. I simply don't want to look how someone takes my money just because he thinks it's OK. Those are my images, and I will decide who's gonna sell them. If SS is serious company, they will find a solution. If they are not, I don't want to give them my images. SS is my best seller, but I am ready to do it.

sharpshot · « **Reply #97 on:** May 28, 2009, 08:40 »

Quote from: shutterdrop on May 28, 2009, 08:35

The IRS regulation has been on the books for a very long time. Treaties between countries to prevent double-taxation have been around for a very long time. Other nations around the world have similiar tax regulation.

I remember all the heat on the forums how we needed change and how O'Banana was going to change the Evil Bush countries. How do like the change Now?

O'Banana and his tax cheaters are enforcing the law so you can't cheat the US big tax socialist government out of taxes. Yes, and the IRS want your private and personally information just in case they need to water-board you for more tax information.
The short is, "Be careful what you wish for." How do you like the O'Banana Now?

This has nothing to do with Obama, the laws were in place before he became president and as several people have stated, other sites have asked us to do this under previous presidents.

I have no problem if you want to blame it on Gordon Brown though

katinelis · « **Reply #98 on:** May 28, 2009, 08:47 »

SS says:
"6) If you think other microstock companies are except from paying tax, think again. It's a matter of time before they start following the law also."

that about DT or fotolia?

una · « **Reply #99 on:** May 28, 2009, 08:49 »

Quote from: Inga on May 28, 2009, 08:21

I get the feeling they don't want foreign contributors anymore! It really sounds like that! Especially the really rude reaction by Shutterstock!

Seams I really need to delete my images in the end...

I have the same feeling