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Adobe Stock / Re: Fotolia and Witholding Taxes!
« on: December 03, 2009, 02:41 »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.