MicrostockGroup Sponsors


Author Topic: Fotolia and Witholding Taxes!  (Read 48724 times)

0 Members and 1 Guest are viewing this topic.

KB

« Reply #50 on: December 02, 2009, 12:04 »
0
So, as a US-based contributor, do I need to fill out a W-9 with them or not?

Or did I do it already, years ago?  ;D


« Reply #51 on: December 02, 2009, 12:29 »
0
On your Member Area Page they added another link "Tax Center", don't know when that was added.  Saw it today for the first time:


Member Area -Credits -Files -Profile -Toolbox -Affiliation -Subscription -Support -Tax Center

« Reply #52 on: December 02, 2009, 18:44 »
0
I have contacted FT support with the following question:  "I am an individual living in a tax treaty country. If I submit a W-8BEN WITHOUT AN ITIN, will Fotolia deduct tax on my US sales at the reduced tax treaty rate?"   It seems like a simple question.   I'm waiting on a response.

I previously contacted them with the same question, and they responded that I should contact my tax advisor to find out how to fill out the forms. ???  That was NOT what I asked.  This is a question about Fotolia policy.

This time I hope they answer the question with a simple yes or no.



« Reply #53 on: December 03, 2009, 02:41 »
0
I have contacted FT support with the following question:  "I am an individual living in a tax treaty country. If I submit a W-8BEN WITHOUT AN ITIN, will Fotolia deduct tax on my US sales at the reduced tax treaty rate?"   It seems like a simple question.   I'm waiting on a response.

I previously contacted them with the same question, and they responded that I should contact my tax advisor to find out how to fill out the forms. ???  That was NOT what I asked.  This is a question about Fotolia policy.

This time I hope they answer the question with a simple yes or no.




I submitted the W8-BEN without an ITIN, and have now received the following email from FT:

"Dear Contributor,
We are happy to inform you that your U.S. IRS Withholding tax form has been validated. Thank you for providing the appropriate tax information. By complying with the U.S. IRS tax law and submitting the tax form, you are not subject to automatic tax withholding at the appropriate rate. Rather, withholding tax, if applicable, may be at a reduced or zero withholding rate.
Feel free to contact us with any questions.
Best Regards,
Fotolia Team"

So, that seems to indicate that FT (like SS) will deduct tax at the appropriate tax treaty rate, without the need for an ITIN.



« Reply #54 on: December 03, 2009, 05:00 »
0
Quote
Dear Contributor,
We are happy to inform you that your U.S. IRS Withholding tax form has been validated. Thank you for providing the appropriate tax information. By complying with the U.S. IRS tax law and submitting the tax form, you are not subject to automatic tax withholding at the appropriate rate. Rather, withholding tax, if applicable, may be at a reduced or zero withholding rate.
Feel free to contact us with any questions.
Best Regards,
Fotolia Team
It is the word "may" that I have put in bold that confuses things.  The information in the tax center implies that they will withhold tax without the ITIN number.  We need to know if they will withhold tax without the ITIN, only a yes or no answer will clarify it for me.  SS made it very clear what they were doing, FT need to do the same.

« Reply #55 on: December 03, 2009, 09:28 »
0
I have contacted FT support with the following question:  "I am an individual living in a tax treaty country. If I submit a W-8BEN WITHOUT AN ITIN, will Fotolia deduct tax on my US sales at the reduced tax treaty rate?"   It seems like a simple question.   I'm waiting on a response.

I previously contacted them with the same question, and they responded that I should contact my tax advisor to find out how to fill out the forms. ???  That was NOT what I asked.  This is a question about Fotolia policy.

This time I hope they answer the question with a simple yes or no.




I submitted the W8-BEN without an ITIN, and have now received the following email from FT:

"Dear Contributor,
We are happy to inform you that your U.S. IRS Withholding tax form has been validated. Thank you for providing the appropriate tax information. By complying with the U.S. IRS tax law and submitting the tax form, you are not subject to automatic tax withholding at the appropriate rate. Rather, withholding tax, if applicable, may be at a reduced or zero withholding rate.
Feel free to contact us with any questions.
Best Regards,
Fotolia Team"

So, that seems to indicate that FT (like SS) will deduct tax at the appropriate tax treaty rate, without the need for an ITIN.





Hi Robyn,

I also submitted the W8-BEN without an ITIN and received the same email but it is also the word "may" that  Sharpshot quoted that I have a problem with.
It is very unclear. I can't believe how little help and responses we are receiving from them. The FT forum is practically empty over there with little help and advice. We criticized SS at the time but they were a lot more helpful.
If we do need an ITIN they are sure not giving us a lot of time to get it.


« Reply #56 on: December 03, 2009, 10:35 »
0
hi guys and gals,

you may want to be careful with the meaning of that may:
reading the spanish version of the tax center (http://es.fotolia.com/Member/TaxCenter) I get the impression that although you can submit without the ITIN, you'll only get a reduced withholding rate on USA sales if you submit the form with the ITIN.

it actually reads:
RESIDENTE DE UN PAS CON TRATADO FISCAL CON USA
Si es usted residente en un pas con tratado fiscal con USA, enve el formulario W-8 BEN. De acuerdo al tratado impositivo correspondiente, se beneficiar de tasas reducidas o incluso ninguna tasa. Aconsejamos que consiga un TIN para beneficiarse de reducciones o cero tasas, completando el formulario SS-4 o el Form W-7. Todos estos formularios deben ser enviados directamente a la agencia IRS, no a Fotolia. SS-4 ( SS-4 Instrucciones ) o W-7 . Este formulario debe ser enviado directamente a IRS, no a Fotolia.
Por favor, recuerde que un formulario W-8BEN puede ser enviado sin nmero TIN. El TIN permite al colaborador beneficiarse de los beneficios del tratado para reducir o eliminar retenciones en los beneficios USA. El TIN no es obligatorio para beneficios fuera de USA.

which in english would be:
Quote from: my (attemp of) translation
RESIDENTS IN A COUNTRY WITH FISCAL TREATY WITH THE USA
If you are resident in a country with a fiscal treaty with the USA, send the form W-8 BEN. According to the respective fiscal treaty you'll benefit from reduced tax or even no tax. We advice you to get a TIN to benefit of reductions or zero taxes, by filling the form SS-4 of form W-7. All these forms must be sent directly to the IRS, not Fotolia.
 Please, remember that a form W-8BEN may be sent without TIN number. The TIN allows the contributor to benefit with the benefits of the treaty to reduce or eliminate withholding from USA benefits. The TIN is not mandatory for benefits outside USA.


Fotolia really needs to explain these things in plain english.. or spanish, or... whatever, or at least be consistent in all languages.

« Reply #57 on: December 03, 2009, 12:33 »
0
OK, you all have good reason to be concerned about the word "may" !!!   ??? 

I've just received an answer from FT support to my specific query.  Here is my question and their response:

My question:
"... I am an individual living in a tax treaty country. If I submit a W-8BEN WITHOUT AN ITIN, will Fotolia deduct tax on my US sales at the reduced tax treaty rate?...

FT support answer:    
Dear Robyn,
Unfortunatelly not. If no ITIN is submitted the form will be subject to the default 30% rate withholding.
Kind regards,
Fotolia Team U.S"


Good grief!  So what is the point of lodging the W8-BEN at all?  Why is the FT policy different to what SS is doing? 

In any case, I shall get the ball rolling on applying for an ITIN.

« Reply #58 on: December 03, 2009, 16:53 »
0
You need a letter/document from Fotolia to support the W7 - application for ITIN.  I asked Fotolia for this, and the response was that their executive team is working on it, and will post info about it in a few days.

« Reply #59 on: December 03, 2009, 17:37 »
0
I am not applying for an ITIN just for fotolia.  If they do withhold any tax, I can put that on my tax return and I wont have to pay so much in my own country.  Hopefully, when they see how badly their contributes feel about this, they will have to do what SS did and let us have all our money without the ITIN number.  They have disappointed me so many times lately that I am not sure if I will be with them in years to come.  There are lots of other places to sell my images.

« Reply #60 on: December 03, 2009, 18:49 »
0
I am not applying for an ITIN just for fotolia.  If they do withhold any tax, I can put that on my tax return and I wont have to pay so much in my own country.  Hopefully, when they see how badly their contributes feel about this, they will have to do what SS did and let us have all our money without the ITIN number.  They have disappointed me so many times lately that I am not sure if I will be with them in years to come.  There are lots of other places to sell my images.

I'm not sure what country you're from, but in my case here in Australia there are limits on how much credit can be claimed for foreign tax paid.  It's not a matter of simply reporting the US tax paid on my income tax return and reducing local tax paid by the same amount.  That would be too easy!  So you might want to check this out further in your own country.   :)

« Reply #61 on: December 04, 2009, 05:10 »
0
Thanks guys for keeping this thread updated. I haven't submitted the form yet - seems little point now. Like Sharpshot, I don't think I'd bother applying for an ITIN number just for Fotolia.

Since Fotolia is usually my 4th earner, I can't imagine the money being withheld will be anything to lose sleep over (would be a different matter altogether if Fotolia was one of your top earners). I'd just like to know exactly when they will start withholding the money?....

« Reply #62 on: December 04, 2009, 10:57 »
0
(...)
 I'd just like to know exactly when they will start withholding the money?....


from the Fotolia newsletter:
Quote
HOW MUCH TIME DO I HAVE TO COMPLY?

We encourage you to complete this procedure as soon as possible. However, in order to allow enough time to our contributors, withholding will be activated on January 1, 2010. After this date, withholding will be applicable on all payments.


« Reply #63 on: December 04, 2009, 16:53 »
0
I asked the support in Germany about the ITIN question, let's see what they answer...

« Reply #64 on: December 04, 2009, 17:29 »
0
from the Fotolia newsletter:
Quote
HOW MUCH TIME DO I HAVE TO COMPLY?

We encourage you to complete this procedure as soon as possible. However, in order to allow enough time to our contributors, withholding will be activated on January 1, 2010. After this date, withholding will be applicable on all payments.

Thanks for that :)

« Reply #65 on: December 04, 2009, 18:50 »
0
They haven't given the people who are going to apply for an ITIN much time have they?  Especially this time of the year.  I am sure SS gave us a few months before they realised the ITIN wasn't necessary.

« Reply #66 on: December 07, 2009, 18:50 »
0
I filled out the form without the ITIN number and received that same email confirming it has been validated.

The way I had interpretted the newsletter I thought that if you submitted no form you would be taxed 30% on ALL earnings (which seems like blackmail and not legal) but if you submitted a form without the number you would be taxed at the maximum rate only on US based earnings.

Having a ITIN number would ensure you would be able to claim the treaty rate (in my case 5%) on US earnings. (Noting that SS seemed to sort things out so that the treaty was applicable without the number!)

It's all too bloody confusing!

Fotolia is currently ranked as my second best earner but I will not under any circumstance be applying for an ITIN number.

« Reply #67 on: December 08, 2009, 07:27 »
0
I'm having trouble with the w-9 form as well. I have a business license and an EIN number which I keep putting on the form but they have rejected my w-9 twice.

« Reply #68 on: December 08, 2009, 08:38 »
0
I'm having trouble with the w-9 form as well. I have a business license and an EIN number which I keep putting on the form but they have rejected my w-9 twice.

Same thing happened to me until I supplied the number without spaces.  Try that.

« Reply #69 on: December 08, 2009, 09:26 »
0
I was doing it without the spaces but it didn't work. It may have to do with the address.

« Reply #70 on: December 08, 2009, 10:23 »
0
I got a response on my question to support.
It was a bit cryptical, but essentially saying that the form should be filled out to receive the benefit of no tax reductions (I'm living in Germany, so the applicable tax rate under the tax treaty is 0%). They did not explicitely answer to my question about what happens if I do not fill in an ITIN.

I then filled out the form (without ITIN of course) and it now was approved. The approval message no explicitely states that they will not withhold taxes (original German text for those who understand it "Durch die Einreichung entsprechen Sie nun den geltenden Bestimmungen und sind nicht Gegenstand einer automatisch erhobenen Abgeltungssteuer und profitieren von einer reduzierten bzw. nicht erhobenen Quellensteuer-Abgabe.")
...

Let's wait for my first payout in 2010 to see if this all holds true...

« Reply #71 on: December 08, 2009, 14:58 »
0
I got a response from FT about my issue. In a nutshell they can't help me please go to the tax center on the site for help. Unfortunately the only thing on the tax center is the ability to re-submit the form that has already been rejected twice. There is no help file or other information.

The email also said that I could hire an accountant to help me. I didn't have this problem when I filled out the form for SS.

KB

« Reply #72 on: December 08, 2009, 17:04 »
0
Typical FT "support", unfortunately.  :(

« Reply #73 on: December 08, 2009, 17:26 »
0
Typical FT "support", unfortunately.  :(

I wonder if IS's little bombshell (and the potential exodus of top contributors) might encourage them to pull their finger out and start communicating and providing some 'support'.

« Reply #74 on: December 12, 2009, 17:20 »
0
I got a response from FT about my issue. In a nutshell they can't help me please go to the tax center on the site for help. Unfortunately the only thing on the tax center is the ability to re-submit the form that has already been rejected twice. There is no help file or other information.

The email also said that I could hire an accountant to help me. I didn't have this problem when I filled out the form for SS.


There is a bug on their site - the "Tax Center" link in the member area takes you to "http://www.fotolia.com/Member/TaxCenter/View", where there is the list of submitted tax forms and their status, but no other information.  There needs to be a link to take you to "http://www.fotolia.com/Member/TaxCenter" where there is the general information about requirements.  I pointed this out to them, but as yet no change.  Currently there is no link anywhere that I can see that takes members straight to this information area.  (Not that the area is particularly helpful once you do get there...)



 

Related Topics

  Subject / Started by Replies Last post
10 Replies
6892 Views
Last post June 16, 2009, 09:42
by Adeptris
17 Replies
7471 Views
Last post February 09, 2010, 17:13
by madelaide
8 Replies
5723 Views
Last post March 12, 2010, 12:22
by studioportosabbia
12 Replies
4187 Views
Last post January 04, 2017, 12:56
by click_click
6 Replies
2603 Views
Last post January 15, 2021, 23:40
by EO

Sponsors

Mega Bundle of 5,900+ Professional Lightroom Presets

Microstock Poll Results

Sponsors

3100 Posing Cards Bundle