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Author Topic: 2010 Fotolia Tax coming !!  (Read 48715 times)

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« Reply #50 on: January 03, 2010, 07:19 »
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That isn't correct, I am from the UK, I filled in the form without the ITIN and it was accepted but I am still getting tax withheld.

What isn't correct? That no tax was deducted from my sales? Do you mean that that's a mistake on their side? As I said, other contributors with Fotolia Germany are reporting the same. Also, our moderator, who is also a Fotolia employee, said that he is not going to apply for an ITIN because it's not worth it for him, as he has very few sales from US-buyers which of course indicates that tax is only going to be deducted for US-based sales.
This is for US sales only, perhaps you haven't sold any in the US yet?  I have and have had tax deducted, after having the form accepted without the ITIN.  I don't believe they would have different rules for the UK and Germany but this is fotolia, so anything seems possible :)


« Reply #51 on: January 03, 2010, 07:24 »
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That isn't correct, I am from the UK, I filled in the form without the ITIN and it was accepted but I am still getting tax withheld.

What isn't correct? That no tax was deducted from my sales? Do you mean that that's a mistake on their side? As I said, other contributors with Fotolia Germany are reporting the same. Also, our moderator, who is also a Fotolia employee, said that he is not going to apply for an ITIN because it's not worth it for him, as he has very few sales from US-buyers which of course indicates that tax is only going to be deducted for US-based sales.
This is for US sales only, perhaps you haven't sold any in the US yet?  I have and have had tax deducted, after having the form accepted without the ITIN.  I don't believe they would have different rules for the UK and Germany but this is fotolia, so anything seems possible :)

Oh, sorry! I was under the impression that people were talking about having filled out their form and still having tax deducted for all their sales, not only those from the US. Now it's clear.

« Reply #52 on: January 03, 2010, 09:00 »
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Hi,
I filled the W8 form and it is now validated.
What's going to happen next?
They're going to deduct 30 per cent of all my American sales, right?
Well then, what's the point in filling that form in the first place?
And what about people who can't fill the W8 form (non treaty countries)? Are they subjected to US taxes on ALL of their sales?
No matter where the sale came from?

I'm so angry I'm sure I'm missing something here. This doesn't look right.

And the best part is Fotolia's moderators.
They're very busy making sure no outside links are allowed and people are properly terrorized into silence.
Helping contributors or trying to solve the problem is surely not that important.
Talk about priorities and taking your job to surreal levels...

« Reply #53 on: January 03, 2010, 09:13 »
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They're going to deduct 30 per cent of all my American sales, right?
Well then, what's the point in filling that form in the first place?

So they don't deduct 30% of ALL your sales !!  I think that's why !   :-\

« Reply #54 on: January 03, 2010, 09:26 »
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So they don't deduct 30% of ALL your sales !!  I think that's why !   :-\

The US IRS can't do that anyways. The US has no ground taxing a non-US alien in his own country for what another non-US alien in his own country buys. The only thing they can do is tax the agency itself on its profits, if it resides in the US. So filling in that form without ITIN number was totally useless if Fotolia doesn't go the SS, BigStock or Veer way.

This might be the sore point. FT probably has been audited by the IRS and it turned out they didn't declare their profits, or not enough of them. As a consequence, they now have a cash flow problem since their cost/income tables don't hold any more. What they do is just throw the burden of their taxes on the contributor to keep their financial structure healthy.
« Last Edit: January 03, 2010, 09:54 by FD-amateur »

« Reply #55 on: January 03, 2010, 10:22 »
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So they don\\\'t deduct 30% of ALL your sales !!  I think that\\\'s why !   :-\\\\

The US IRS can\\\'t do that anyways. The US has no ground taxing a non-US alien in his own country for what another non-US alien in his own country buys. The only thing they can do is tax the agency itself on its profits, if it resides in the US. So filling in that form without ITIN number was totally useless if Fotolia doesn\\\'t go the SS, BigStock or Veer way.

This might be the sore point. FT probably has been audited by the IRS and it turned out they didn\\\'t declare their profits, or not enough of them. As a consequence, they now have a cash flow problem since their cost/income tables don\\\'t hold any more. What they do is just throw the burden of their taxes on the contributor to keep their financial structure healthy.
It\' seems impossible but I\'m afraid you are right. They deducted 30% of all my January sales (4) and I have no US sales in my stats. Bandidos.
If it\'s true I\'ll delete my portfolio from FT (like I already did for videos) - not a big lose, anyway I\'ll probably go exclusive at IS in few months.

« Reply #56 on: January 03, 2010, 10:35 »
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That isn't correct, I am from the UK, I filled in the form without the ITIN and it was accepted but I am still getting tax withheld.

What isn't correct? That no tax was deducted from my sales? Do you mean that that's a mistake on their side? As I said, other contributors with Fotolia Germany are reporting the same. Also, our moderator, who is also a Fotolia employee, said that he is not going to apply for an ITIN because it's not worth it for him, as he has very few sales from US-buyers which of course indicates that tax is only going to be deducted for US-based sales.

Yes. It is absolutely clear, I guess to everyone, that the witholding is only for sales to US customers. Otherwise it would be illegal and FT is certainly not going that route (unless there is bug in their system). Not care about us does not mean they would risk tax frauds.

So far it seems there are two groups of people (also on FT forum), first group seems to get the tax witheld only on the US sales (or does not have any tax witheld since they did not have any sale to US customer). Second group seems to report tax being witheld on all sales, not just US ones. There are two new options under stats page at FT that allow you to see how much was witheld and what was sold in US. So either this stats is not working correctly, the FT witholding system is not working correctly or these contributors are missing something.l

« Reply #57 on: January 03, 2010, 10:56 »
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Right

If you have filled out a W-8BEN form without a ITIN number you will still be taxed 30% on US sales as Fotolia are insisting you need this ITIN number as Fotolia have not yet sent out any letters to those who have requested them that means most non US contributors will be taxed. I did get Fotolia to agree to send out these letters but you know what they are like so everyone is still waiting to see if we do indeed get them in the post.
It is Fotolias policy to take tax off every US sale if you do not have this ITIN number.

 Now as for people reporting that tax has been taken off all sales well that I would think would be Illigal and you should send a strong message to support telling them this MUST STOP (this has not happened to me in fact not had any US sales so far this year)

It makes me think, are Fotolia taking tax off all sales when the contributor has not filled any type of form in at all ? , as I say this has not happened to me as I have a W-8BEN form filled in without an ITIN and validated on Fotolia but I will still have to pay30% tax on US sales.

Fotolia must wake up to this before they lose some very good and promicing artists it such a sad sad situation and need sorting out as soon as poss BY FOTOLIA !

Warren

« Reply #58 on: January 03, 2010, 10:59 »
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If only I had the Email address of Fotolia CEO

« Reply #59 on: January 03, 2010, 11:22 »
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Warren,

Yes they certainly do. I haven't submitted the W8-BEN (well I did earlier this morning, so it's in the pending queue now). I've had 8 sales since January 1st - none of them are from U.S. buyers according to the new options from the statistics page. Yet all of them include 28% withholdings (why not 30% by the way?).

In fact U.S. sales make up just 13,9% of my all time earnings there, so I'm not even sure if it will be worth the hassle for me to obtain an ITIN, had the withholdings only affected US sales.

I do want to complain, but feel powerless. Seriously. This is a joke.

« Reply #60 on: January 03, 2010, 11:43 »
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I'm pulling my port if this tax fiasco doesn't get solved soon. I hate to do it because they are, like for most of us, my n3 seller...but after thinking long about it i decided their money isn't worth it (admitted i have a rather small port there making the decision a tad easier). Submitting there makes me feel like a powerless wh*re who gets badly abused by her pimp, just waiting for the next beating...
No thanks.


« Reply #61 on: January 03, 2010, 11:56 »
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Are Fotolia actually trying to make us all go exclusive with Istock? They certainly appear to be acting as IS's Chief Recruiting Sergeant.

 ;D ;D
this is entertainment to my sunday breakfast.

but then again, it may not be as ridiculous as it seems. after all, the CEOs came from IS.

« Reply #62 on: January 03, 2010, 12:25 »
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If only I had the Email address of Fotolia CEO


[email protected] [nofollow]

http://www.facebook.com/cbridwell [nofollow]

« Reply #63 on: January 03, 2010, 12:28 »
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I do want to complain, but feel powerless. Seriously. This is a joke.

Fill in the FT help desk ticket. Describing the fact that the witholding happens on all of your sales. There are probably others doing this, yet the more, the better. I know this may not get you anywhere, yet there is chance. Actually this is bit different than just the other stuff on which their support proved to be unresponsive. This would be clearly illegal and they will know that.

« Reply #64 on: January 03, 2010, 13:08 »
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I had two sales this year. One subs, no discount, 0.32 credits earned.  One XS, 0.217 credits earned (instead of 0.34).

But 0.217 is not 0.7x0.34 (=0.238).  Isn't the tax deduction 30%?

« Reply #65 on: January 03, 2010, 13:09 »
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Considering they are withholding taxes, are they are obliged by law at the end of the year to send us a paper copy of our payroll status with a duplicate going to the IRS.  (By regular mail)  In Canada the form is called a T-4 if on payroll, I think a T4A if withholding from independent contractors.  There must be a U.S. name for this form?  It is against the law not to provide a T-4 here and the employer can get in loads of trouble if they neglect to do so.

I've only had 2 xs sales. One for .31 the other for .277.  

« Reply #66 on: January 03, 2010, 14:17 »
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Warren,
let me clarify this for you. As best I can.

1. If you DO submit the W8 form (no ITIN) they deduct 30 per cent on all American sales.

2. If you DON'T submit the W8 form they deduct 28 per cent (where is this 28 % coming from anyway?) from each of your sales. All of them! No matter where they came from.

This shouldn't be happening. It is either a glitch, lack of interest, or see FD-Amateur post above.
Question is what can we do to make them listen to us?
Support tickets?

« Reply #67 on: January 03, 2010, 14:28 »
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1. If you DO submit the W8 form (no ITIN) they deduct 30 per cent on all American sales.

2. If you DON'T submit the W8 form they deduct 28 per cent (where is this 28 % coming from anyway?) from each of your sales. All of them! No matter where they came from.


Correct based on my personnal situation.  Canadian resident, two sales, non of them from US, they withhold 28% because I can't submit the W8 Form (see previous post).

Let's see of other's situation to understand what is going on...

Claude

« Reply #68 on: January 03, 2010, 14:40 »
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But 0.217 is not 0.7x0.34 (=0.238).  Isn't the tax deduction 30%?
Well, ok.  0.217 is 0.7x0.31.  I forgot the commission reduction.  Happy New Year, Fotolia style.  :-\

« Reply #69 on: January 03, 2010, 16:05 »
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can anyone tell my why they want this ITIN? Shutterstock doesn't?

« Reply #70 on: January 03, 2010, 16:54 »
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can anyone tell my why they want this ITIN? Shutterstock doesn't?


The IRS say that it is needed, if you want to make use of the Tax Treaty.

http://www.irs.gov/taxtopics/tc857.html [nofollow]

Quote
Individuals needing an ITIN include:

   1. A nonresident alien individual eligible to obtain the benefits of a reduced rate of withholding under an income tax treaty

« Reply #71 on: January 03, 2010, 23:43 »
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I am not a tax expert...

US residents, citizens and people working for US companies have taxes withheld from their paychecks. This money is then forwarded on to the IRS as part of our income tax procedures. By law you will receive a W2 or 1099 by the end of January for the previous fiscal year. (Jan - Dec) This document will detail how much money has been withheld.

When you file your tax returns, due by April 15th, the IRS will cross check your stated income against what the company says they paid you and will determine if you owe more money or are due a refund. If you make under a certain dollar amount than the IRS will declare you do not owe taxes and will refund the money. Likewise if you can prove that the money should not have been held then you can submit forms to declare that and they will process them.

FT should not be keeping any of this money for themselves. It should be getting sent to the IRS. If they are not sending it then they are in violation of IRS laws.

The short version is that the money that is deducted should be going to the IRS and you will have to contact them to get it back. Monies held starting Jan. 1, 2010 will be applied towards perceived owed US income taxes that will be due April 15, 2011. 

« Reply #72 on: January 04, 2010, 02:02 »
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I just wanted to say my grateful congratulation with you because your files has been sold.I will promise that i will visit the Tax Center and to review the information listed on that page. Thank you!




________________________
newbielink:http://www.taxmatterssolutions.com/articles/filing-paying-back-taxes.php [nonactive]

« Reply #73 on: January 04, 2010, 02:22 »
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From the latest info on the FT forums, it looks like people who had filled in the tax form without ITIN are subject to 30% witheld on US sales only. People that had not filled in anything are subject to 28% tax on all their sales which some hint is legal and is supposed to stay that way. We will see...

« Reply #74 on: January 04, 2010, 08:02 »
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Nice 'surprise' at Fotolia today:
   Photo Sale credit - File ID: 13874040 (withholdings included at 43%)

43%?!
I must be missing something. My W-8 has been filled in and approved....
Does anyone have a clue where this insane 43% might come from?


 

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