Could Fotolia come up with any more bad news for contributors.

We've had

reduction in % commission
increase in the canister levels
taxation stupidity
the worst communication plan in the world

To offset this we've had amazing announcements like

The idiots who got lost in the desert who submit photos to fotolia
Fotolia university

In the last 6 months fotolia has been Istocks best friend tipping many people over the edge to exclusivity.

I wish they would just sort this taxation mess out the same way everybody else has.

My W-9 was approved today.  Yay! 

Quote from: lisafx on January 07, 2010, 00:10
My W-9 was approved today.  Yay! 

Mina was, too  
BUT how will we (meaning those of us from the US) find out the total $ paid to the IRS so we can deduct that amount from our 2010 income tax payments? Employers send W-2 forms, will Fotolia send us W-2's in January 2010? It should count as part of our income taxes.

Quote from: Allsa on January 07, 2010, 01:23
BUT how will we (meaning those of us from the US) find out the total $ paid to the IRS so we can deduct that amount from our 2010 income tax payments? Employers send W-2 forms, will Fotolia send us W-2's in January 2010? It should count as part of our income taxes.

They are not deducting any taxes for US, it is your responsibility - I expect they will just send a copies of 1099 to IRS and to you as SS does.

What I do not understand is why they are asking for W-9 again? I believe (though I may be wrong, I've already demonstrated my perfect memory on other thread ) that I already submitted it last year. Employers do not ask W-9 every year, only when they hire you/

What? Did you actually read any of this thread before posting? FT has been deducting taxes from our earnings, that's what all the complaining is about, and the subject of this thread! Your response makes no sense.

Quote from: UncleGene on January 07, 2010, 15:20

Quote from: Allsa on January 07, 2010, 01:23
BUT how will we (meaning those of us from the US) find out the total $ paid to the IRS so we can deduct that amount from our 2010 income tax payments? Employers send W-2 forms, will Fotolia send us W-2's in January 2010? It should count as part of our income taxes.

They are not deducting any taxes for US, it is your responsibility - I expect they will just send a copies of 1099 to IRS and to you as SS does.

What I do not understand is why they are asking for W-9 again? I believe (though I may be wrong, I've already demonstrated my perfect memory on other thread ) that I already submitted it last year. Employers do not ask W-9 every year, only when they hire you/

I'm from treaty country and my W-8 BEN with out ITIN form already approved by fotolia but I still pay 30% tax?

At SS filling W-8 BEN form with out ITIN you can enjoy tax treaty benefits (if you are from treaty contry), but why fotolia can not to do that? why fotolia asking for ITIN to get tax treaty benefits?

Quote from: Allsa on January 07, 2010, 16:42
What? Did you actually read any of this thread before posting? FT has been deducting taxes from our earnings, that's what all the complaining is about, and the subject of this thread! Your response makes no sense.

Perhaps I missed something (your post?). I do not see any withholding on my (rare) sales, though I already got couple "tax" messages.

Sorry for possible misleading, my reply was from my understanding of IR code, not from one of FT practices.

Quote from: erwinova on January 08, 2010, 02:28
I'm from treaty country and my W-8 BEN with out ITIN form already approved by fotolia but I still pay 30% tax?

At SS filling W-8 BEN form with out ITIN you can enjoy tax treaty benefits (if you are from treaty contry), but why fotolia can not to do that? why fotolia asking for ITIN to get tax treaty benefits?

I don't know if I am wrong, but what the treaty does is let you not pay taxes again in your country, as you have already paid in the original one - to whom FT gives the tax money.

In my case, a "non-treaty" country, not only I pay 30% to the US government, but also 27.5% (due to my current tax range) to Brazilian government.  So in the end I get half of my already small share.   

Quote from: madelaide on January 08, 2010, 14:06

Quote from: erwinova on January 08, 2010, 02:28
I'm from treaty country and my W-8 BEN with out ITIN form already approved by fotolia but I still pay 30% tax?

At SS filling W-8 BEN form with out ITIN you can enjoy tax treaty benefits (if you are from treaty contry), but why fotolia can not to do that? why fotolia asking for ITIN to get tax treaty benefits?

I don't know if I am wrong, but what the treaty does is let you not pay taxes again in your country, as you have already paid in the original one - to whom FT gives the tax money.

In my case, a "non-treaty" country, not only I pay 30% to the US government, but also 27.5% (due to my current tax range) to Brazilian government.  So in the end I get half of my already small share.  

From the way I read it, photographers from non-treaty countries will pay 28% on all sales IF they don't fill out W8 tax form. If they fill out a W8 tax form, they will get taxed 30% only on US sales. I guess this is an IRS requirement to show that you are not a US resident.  In my case my US sales in 2009 amounted to 14% of my total Fotolia sales. US sales have always been a small percentage with Fotolia...lets hope for your sake it stays that way  . Denis

Denis,

It is indeed only the US sales.  Anyway, it means a 50% overall taxation in the end.

Personally, I think it is a non-sense to be so highly taxed when you do NOT live in the USA and therefore doesn't benefit of government money in infrastructure, medical services, etc.  I understand charging some tax because of doing local business, but 30% is very high. 

Quote from: madelaide on January 08, 2010, 14:06

Quote from: erwinova on January 08, 2010, 02:28
I'm from treaty country and my W-8 BEN with out ITIN form already approved by fotolia but I still pay 30% tax?

At SS filling W-8 BEN form with out ITIN you can enjoy tax treaty benefits (if you are from treaty contry), but why fotolia can not to do that? why fotolia asking for ITIN to get tax treaty benefits?

I don't know if I am wrong, but what the treaty does is let you not pay taxes again in your country, as you have already paid in the original one - to whom FT gives the tax money.

In my case, a "non-treaty" country, not only I pay 30% to the US government, but also 27.5% (due to my current tax range) to Brazilian government.  So in the end I get half of my already small share.   

I did a search and found this that might be worth checking out.

QuoteAt this time there is no double taxation agreement, treaty or convention between Brazil and the United States. However, there is reciprocal tax treatment between Brazil and the United States.

http://www.brasilemb.org/index.php?Itemid=176&id=187&option=com_content&task=view

Thanks Sharpshot, I will take a look into this.  I had read in other sources that there is nothing like that between Brazil and US, but this like says otherwise.

Quote from: madelaide on January 08, 2010, 14:06

Quote from: erwinova on January 08, 2010, 02:28
I'm from treaty country and my W-8 BEN with out ITIN form already approved by fotolia but I still pay 30% tax?

At SS filling W-8 BEN form with out ITIN you can enjoy tax treaty benefits (if you are from treaty contry), but why fotolia can not to do that? why fotolia asking for ITIN to get tax treaty benefits?

I don't know if I am wrong, but what the treaty does is let you not pay taxes again in your country, as you have already paid in the original one - to whom FT gives the tax money.

In my case, a "non-treaty" country, not only I pay 30% to the US government, but also 27.5% (due to my current tax range) to Brazilian government.  So in the end I get half of my already small share.   

I still pay income tax in my country, but it's around 8%.
My concern is why I pay 30% of tax at fotolia?,  meanwhile Shutterstock give me 10% tax with same W-8 BEN form with out ITIN?

everybody need to ask this matter to fotolia.

Quote from: erwinova on January 09, 2010, 00:45

Quote from: madelaide on January 08, 2010, 14:06

Quote from: erwinova on January 08, 2010, 02:28
I'm from treaty country and my W-8 BEN with out ITIN form already approved by fotolia but I still pay 30% tax?

At SS filling W-8 BEN form with out ITIN you can enjoy tax treaty benefits (if you are from treaty contry), but why fotolia can not to do that? why fotolia asking for ITIN to get tax treaty benefits?

I don't know if I am wrong, but what the treaty does is let you not pay taxes again in your country, as you have already paid in the original one - to whom FT gives the tax money.

In my case, a "non-treaty" country, not only I pay 30% to the US government, but also 27.5% (due to my current tax range) to Brazilian government.  So in the end I get half of my already small share.   

I still pay income tax in my country, but it's around 8%.
My concern is why I pay 30% of tax at fotolia?,  meanwhile Shutterstock give me 10% tax with same W-8 BEN form with out ITIN?

everybody need to ask this matter to fotolia.

Ups..I just check My Credit and Yes! they accept W-8 BEN form with out ITIN to get treaty benefits.

Sharpshot,

I have been checking that information, and apparently what it means is that I must only declare the net earnings I had abroad.  That is, if I earn 100 and 12 is paid in taxes in the USA, in the Brazilian tax report I say I earned 88 and will be taxed on this value only.

I wil check with the revenue service, if they ever reply...

That seems like a sensible way to do it, I hope the revenue people agree.

Madelaide,

If you are refering to the IRS then you may be in for a disappointment. I can't remember if I already posted the following on this forum before or not, so apologies if I've repeated myself.

I emailed the IRS via the US Embassy in London, about the whole ITIN issue, explaining that I am a contributor to multiple stock agencies and fotolia was the only one saying that we must have an ITIN to have 0% tax for treaty countries. I asked them detailed questions explaining that I was very confused and asked them to confirm whether or not an ITIN is necessary when submitting a W8BEN. I waited for 2 weeks and got this reply:

"Your W8BEN would be valid forever with an ITIN.  To apply use form W-7
and follow instructions implicitly."

I hope the IRS department you contact will be a lot more helpful!!!!!

Zelda,
No, I meant I will contact the Brazilian revenue service, as the link Sharpshot provided is their legislation about double-taxation. But it's likely I won't get a proper answer too.