MicrostockGroup
Agency Based Discussion => Canva => Topic started by: EO on January 07, 2021, 16:12
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Their statement period is from July to June. That doesn't cover the calendar year from which the IRS needs information. I'm just going to go by what is on the account payment details and select everything from the past calendar year, but I was curious how everyone else in the US handles this mismatched period.
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Maybe Australia goes with a July-June tax year but their statements don't help us much in the US. I do the same as you. The other annoying thing Canva does is charge us foreign income tax. I always claim that back as Foreign tax paid but it is just another way that their system is not helpful to contributors. Would be nice if they did like all the other agencies and provided a statement on a calendar-basis and do not charge us Australian income tax (since I believe there is a tax treaty between the US and Australia).
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Good to know. Can you explain how you claim foreign tax paid? I was under the impression that the withholding gets written of as a regular business expense, ie fees and commissions.
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I don't know - I just keep a tally and give it to my accountant, I've never bothered to look where he lists it. I think there was a separate place to claim a credit for foreign taxes paid but I might be wrong. Sorry I can't be more helpful. If I get a chance I will dig up my tax returns and take a look but don't hold me to that.
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...and do not charge us Australian income tax (since I believe there is a tax treaty between the US and Australia).
There is a tax treaty between the US and Australia which is why you should be getting charged 5% rather than 30%. If you're not then you should get in touch as you'll probably have to update your tax details.
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Australia does have a tax year of July to June. I have the reverse problem, that all the US companies tax reports are not in keeping with when I have to report. I keep all my income payment records and WHT records and use them to report on my tax returns. Here any foreign paid tax is an offset for my local tax, so I dont get taxed twice.
The tax treaty between the USA and Australia means that income gets a 5% local tax not 30% local tax.
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Australia does have a tax year of July to June. I have the reverse problem, that all the US companies tax reports are not in keeping with when I have to report.
Ha, true.
Yes, the statement Canva sent worked out to a 5% withholding.