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Author Topic: Dreamstime's New Tax Center  (Read 31315 times)

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« Reply #25 on: September 01, 2010, 04:26 »
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So, Dreamstime is going to withdraw 30% from now on for all residents on non treaty countries?

No. If you read their statement any tax witholdings will only apply to earnings from US sales. As a European contributor your US sales are likely to be 15-20% of total earnings. If so, for a non-treaty contributor, your witholdings will therefore be closer to 6-7% to total earnings.

At least that is one point that SS appear to have learned from the mistakes at SS & FT.

Thanks Lisa for the heads-up on this issue.
On SS it's also only US sales but on FT it's all sales (it still is, they haven't changed it). I really don't understand why it comes to this difference?

Sorry, you're wrong. On Fotolia the withdraw only for sales in the US. At least for me...

You are right , for a non-treaty contributor on FT its only for sales in US , but you have to fill the form anyway , if u dont they take from every sale , at least it was like that for me


« Reply #26 on: September 01, 2010, 04:28 »
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Sorry, you're wrong. On Fotolia the withdraw only for sales in the US. At least for me...
You submitted the form right? I didn't and they withdraw tax on all of my sales.

So , u go and fill it , even if u are  a non-treaty contributor they will stop withdraw tax from each sale.

« Reply #27 on: September 01, 2010, 04:29 »
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Sorry, you're wrong. On Fotolia the withdraw only for sales in the US. At least for me...
You submitted the form right? I didn't and they withdraw tax on all of my sales.

I guess I did. So I understand that you didn't and now you cannot revert it and send the correct one?

« Reply #28 on: September 01, 2010, 05:10 »
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As FT backed down on the requirement for an ITIN, I am sure DT will as well.  Just look at the forum and it is already full of people demanding them to drop the ITIN requirement.  What will it be like when everyone finds out?  I find it hard to believe that they haven't sent out an email about this.  Don't the sites care about us anymore?  What happens to the people that don't read forums?

Right now they are facing the ITIN issue the hard way. Look at this recent post by Achilles:

Here is the process in 5 easy steps.
1. You fill the W8 with us (saying applied for). That's all it takes if you have an ITIN or are from a non treaty country.

If you don't have an ITIN and are not in a non treaty country, continue like this:
2. You fill the W7 and print it.
3. You wait for us to approve the W8 and mail you an official document with our letterhead.
4. You put the W7 and the official document into an envelope, along with a notarized copy of your passport and mail them to:
Internal Revenue Service
Austin Service Center
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342
5. You wait for the application to be approved (4-6 weeks) and send us the number when you receive the approval.

As far as I know the whole process is free. The only fees would be for the legalized copy and for mailing them.

During all this time you will enjoy the minimum withholding tax,according to the tax treaty just as you do elsewhere.
Honestly, it takes more to debate than to fill the 2 forms.

« Reply #29 on: September 01, 2010, 05:46 »
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So, Dreamstime is going to withdraw 30% from now on for all residents on non treaty countries?

No. If you read their statement any tax witholdings will only apply to earnings from US sales. As a European contributor your US sales are likely to be 15-20% of total earnings. If so, for a non-treaty contributor, your witholdings will therefore be closer to 6-7% to total earnings.

At least that is one point that SS appear to have learned from the mistakes at SS & FT.

Thanks Lisa for the heads-up on this issue.

Yes, I forgot about that. That's not too bad. Thx :)

« Reply #30 on: September 01, 2010, 05:52 »
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Sorry, you're wrong. On Fotolia the withdraw only for sales in the US. At least for me...
You submitted the form right? I didn't and they withdraw tax on all of my sales.

So , u go and fill it , even if u are  a non-treaty contributor they will stop withdraw tax from each sale.
I decided I don't wanna send my info to IRS. If you take that into account it's interesting to see that SS only taxes royalties that came from US buyers only and FT taxes all the royalties. (just to clarify: I didn't send the form on SS and also not on FT).

« Reply #31 on: September 01, 2010, 07:26 »
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^ Yes. Although I doubt many people leave any significant amounts there. Well, there may be exceptions, like FD :]]
Ah, you have been spying on the DT forum!  :P - Yes I forgot to ask payout for a while and I was stuck with about 1300$. As soon as I found out the rule would be applied after Sept 15, I rushed to ask payout. I hope they'll do it before Sept 15.  ;D
« Last Edit: September 01, 2010, 07:29 by FD-regular »

« Reply #32 on: September 01, 2010, 08:55 »
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Gah, this once again  >:(
I saw this thread and assumed i'd go through the easy process of filling the online form and presto, but no, we get the ITIN sh*t again; why cant they get their facts straight, why would the law be different for DT?!
We do NOT need an ITIN number and I also will not toss out my info to the IRS. Bleh.

donding

  • Think before you speak
« Reply #33 on: September 01, 2010, 09:58 »
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Here's the IRS site:
http://www.irs.gov/individuals/article/0,,id=96287,00.html

"Who needs an ITIN?
IRS issues ITINs to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs. A non-resident alien individual not eligible for a SSN who is required to file a U.S. tax return only to claim a refund of tax under the provisions of a U.S. tax treaty needs an ITIN.

Other examples of individuals who need ITINs include:
    A nonresident alien required to file a U.S. tax return
    A U.S. resident alien (based on days present in the United States) filing a U.S. tax return
    A dependent or spouse of a U.S. citizen/resident alien
    A dependent or spouse of a nonresident alien visa holder


How do I know if I need an ITIN?
If you do not have a SSN and are not eligible to obtain a SSN, but you have a requirement to furnish a federal tax identification number or file a federal income tax return, you must apply for an ITIN.
If you have an application for a SSN pending, do not file Form W-7. Complete Form W-7 only if the Social Security Administration (SSA) notifies you that a SSN cannot be issued.
To obtain a SSN, see Form SS-5, Application for a Social Security Card. To get Form SS-5 or to find out if you are eligible to obtain a SSN, go to Social Security Administration Website or contact a SSA office. By law, an alien individual cannot have both an ITIN and a SSN.
IRS processes returns showing SSNs or ITINs in the blanks where tax forms request SSNs. IRS no longer accepts, and will not process, forms showing "SSA205c," "applied for," "NRA," blanks, etc."


It sounds to me like if you don't have to file US income taxes you don't need one and the way it sounds is that you don't need one unless you are filing for a refund..Am I understanding that right???

Here is something else that may be a concern

"The Internal Revenue Service (IRS) Individual Tax Identification Number (ITIN) Program is announcing a moratorium effective January 1st through April 30th, 2010 on all new Forms 13551, Application to Participate in the IRS Acceptance Agent Program.

During the moratorium, the IRS will not accept or process Forms 13551, Application to Participate in the IRS Acceptance Agent Program. Only amendments to existing, approved agreements will be accepted during the moratorium. The ITIN Program will resume accepting applications during the new 2010  Acceptance Agent Open Season, effective May 1 through August 31, 2010."


I personally don't need one because I am in the Us...this is just info for those of you that have questions..

« Reply #34 on: September 01, 2010, 10:20 »
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Some internal on DT really make me confuse about lots of things,
other thing beside ITIN - that will take a lot of my time and money, because I have to got to capital city just to process it with not cheap in my country

Plus all the other agency that I have already submitted the form only deducted 10% from US selling, but DT keep telling me they have to deduct 15% by showing the same treaty that I read when tax withholding issue arise the first time. And they keep telling they do the right thing on those number (so the other stock sites where I submitted was wrong?????)

« Reply #35 on: September 01, 2010, 10:56 »
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Last post on page 7 by Achilles:

Quote
For now we will accept the W8BEN forms without the ITIN number and will continue to investigate this. To be 100% safe we continue to recommend to use the "applied for" option and to send the documents to the IRS.

There is no guarantee we will be able to withhold at the treaty rate if you didn't provide an ITIN and you didn't use the "applied for" option. But once again we will investigate this and for now we will use the same withholding rates as if you provide the ITIN, given that you are from a treaty country.

Considering that the launch is not far, it is better to make sure that the W8BEN forms are filled. If you encounter any issues please email support. Hope this makes everyone comfortable.


http://www.dreamstime.com/forumm_23797_pg7

« Reply #36 on: September 01, 2010, 11:14 »
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Hi Donding :) 
I've seen your post on DT forum. 5 minutes ago.
Thank you for taking the time to investigate this.
You're an American citizen, you live in Texas, it has nothing at all to do with you, thank you for trying your best to help us out :)

Fingers crossed :)

donding

  • Think before you speak
« Reply #37 on: September 01, 2010, 12:41 »
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Hi Donding :) 
I've seen your post on DT forum. 5 minutes ago.
Thank you for taking the time to investigate this.
You're an American citizen, you live in Texas, it has nothing at all to do with you, thank you for trying your best to help us out :)

Fingers crossed :)

Heh I gotta look out for you Anna... ;D

« Reply #38 on: September 01, 2010, 12:59 »
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Hi All,
it's the same old story... as we have seen for Shutter, Fotolia, ...
They now are now accepting the W-8BEN online form WITHOUT an ITIN, continuing the investigation:

"For now we will accept the W8BEN forms without the ITIN number and will continue to investigate this. To be 100% safe we continue to recommend to use the "applied for" option and to send the documents to the IRS.

There is no guarantee we will be able to withhold at the treaty rate if you didn't provide an ITIN and you didn't use the "applied for" option. But once again we will investigate this and for now we will use the same withholding rates as if you provide the ITIN, given that you are from a treaty country.

Considering that the launch is not far, it is better to make sure that the W8BEN forms are filled. If you encounter any issues please email support. Hope this makes everyone comfortable. "

So let's wait a couple of day and then fill the online form :-) I will make a post with a sample of the W-8BEN as I did for Fotolia.
Cheers,
        Roberto

« Reply #39 on: September 01, 2010, 13:11 »
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Hahahah Donding !
Someone's got to do it and I'm glad it's you :)

Hopefully Dreamstime will do the right thing and spare us the hassle.
I'm keeping my hopes high :)

Xalanx

« Reply #40 on: September 01, 2010, 15:22 »
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Dreamstime should really have a user on SS forum, so they can learn things such as how to deal with W8BEN and other matters.

« Reply #41 on: September 01, 2010, 16:53 »
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At least they have made a sensible decision quickly.  I hope they can soon set this up the same way as the other sites.

lisafx

« Reply #42 on: September 01, 2010, 17:15 »
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Very good to hear they got this ITIN business sorted out quickly.  :)

« Reply #43 on: September 01, 2010, 18:34 »
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At least they have made a sensible decision quickly.  I hope they can soon set this up the same way as the other sites.

Sharpshot, they have not made a sensible decision quickly.  This is what they have been asking us to do from the beginning.  They want you to tick the "applied for" option to cover their own arse.  If you tick this box and never apply for it and the decision about the ITIN turns around then you have not covered yourself.  Do you really want, 10 years down the track, the IRS chasing you for money you owe them because you ticked that box, did not apply for an ITIN and dreamstime didn't withhold 30%.  The IRS and tax company will also charge you interest on anything owed to them.  Do you really want this type of headache down the track?  At least with FT and SS, who only charge the treaty amount without the ITIN have come up with a solution and have spoken to the IRS.  Contributors are covered with them.  It is better to hold off and lose some tax dollars while DT sorts themselves out, then you getting caught out later on.

Please, rethink ticking the applied for option unless you're absolutely certain you will apply for it. 

Adios

(this is sunnymars)

« Reply #44 on: September 01, 2010, 19:40 »
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Anyhow another site which will pluck our rare feathers away, with or without they ability to impement that in easy way... grrrrrrrrrrrrr
Blahhh
iStock is laughing on this lets say problems........

« Reply #45 on: September 02, 2010, 02:22 »
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At least they have made a sensible decision quickly.  I hope they can soon set this up the same way as the other sites.

Sharpshot, they have not made a sensible decision quickly.  This is what they have been asking us to do from the beginning.  They want you to tick the "applied for" option to cover their own arse.  If you tick this box and never apply for it and the decision about the ITIN turns around then you have not covered yourself.  Do you really want, 10 years down the track, the IRS chasing you for money you owe them because you ticked that box, did not apply for an ITIN and dreamstime didn't withhold 30%.  The IRS and tax company will also charge you interest on anything owed to them.  Do you really want this type of headache down the track?  At least with FT and SS, who only charge the treaty amount without the ITIN have come up with a solution and have spoken to the IRS.  Contributors are covered with them.  It is better to hold off and lose some tax dollars while DT sorts themselves out, then you getting caught out later on.

Please, rethink ticking the applied for option unless you're absolutely certain you will apply for it. 

Adios

(this is sunnymars)
I never had any intention of ticking the applied for option as I'm not applying for it.  I was referring to their post that they will now accept the form without the ITIN and will investigate further.  If the only option is to tick the applied for box, I wont fill out the form.  I wont look until September 14th, hopefully we wont have to tick the applied for box by then.

rubyroo

« Reply #46 on: September 02, 2010, 02:50 »
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Yes, same here.  I won't be ticking the 'applied for' box, as that would be a lie.  I'll just sit this out and hope they reach the same conclusion as others have after further investigation.  I'm not prepared to go through all those hoops and extra costs for one agency.   

« Reply #47 on: September 02, 2010, 04:11 »
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At least they have made a sensible decision quickly.  I hope they can soon set this up the same way as the other sites.

Sharpshot, they have not made a sensible decision quickly.  This is what they have been asking us to do from the beginning.  They want you to tick the "applied for" option to cover their own arse.  If you tick this box and never apply for it and the decision about the ITIN turns around then you have not covered yourself.  Do you really want, 10 years down the track, the IRS chasing you for money you owe them because you ticked that box, did not apply for an ITIN and dreamstime didn't withhold 30%.  The IRS and tax company will also charge you interest on anything owed to them.  Do you really want this type of headache down the track?  At least with FT and SS, who only charge the treaty amount without the ITIN have come up with a solution and have spoken to the IRS.  Contributors are covered with them.  It is better to hold off and lose some tax dollars while DT sorts themselves out, then you getting caught out later on.

Please, rethink ticking the applied for option unless you're absolutely certain you will apply for it. 

Adios

(this is sunnymars)
I never had any intention of ticking the applied for option as I'm not applying for it.  I was referring to their post that they will now accept the form without the ITIN and will investigate further.  If the only option is to tick the applied for box, I wont fill out the form.  I wont look until September 14th, hopefully we wont have to tick the applied for box by then.


Things are going fast. This is a recent post by a DT Admin:
Message posted at 09/02/2010, 03:11:56 AM by Tano - member is an admin     
   
Originally posted by Kaspri:
Quoted Message: Not true, actually -- since it is still impossible to submit the form without checking the "applied for (10%)" button in section 6!


We have fixed this.
You don't need to fill the ITIN field anymore


They repeated the same steps as SS and FT did before. Is unbelievable how unprofessionally can be a company conducted. Yesterday, after the rush of complaints in their forum they stated that they where assisted by layers and they where sure about the ITIN number and all that $hit.  A few ours later they tell us to tick the box and wait what happens. Now, no ITIN anymore... Sounds very amateur to me.

« Reply #48 on: September 02, 2010, 06:04 »
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It took shutterstock a while to change their minds about the ITIN and it was worse with FT.  Would of been nice if DT had done their research but I am pleased they have reacted quickly.

What does seem amateur is the deadline of September 15th, when people on vacation wont know about this.  They also haven't sent an email, lots of people wont know anything about this and that's really bad.
« Last Edit: September 02, 2010, 06:06 by sharpshot »

« Reply #49 on: September 02, 2010, 10:37 »
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What does seem amateur is the deadline of September 15th, when people on vacation wont know about this.  They also haven't sent an email, lots of people wont know anything about this and that's really bad.
Well DT put up a very big fat notice on the front page. I can't imagine any serious contributor not checking DT at least once per 3 days or so.


 

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