Author Topic: IRS Withholding Taxes for non U.S. Submitters (Read 113073 times)

Magnum · « **on:** May 27, 2009, 14:54 »

Can anyone friendly please explain this. I´m to tired to understand. I just got a headache.

In the countrylist it says: Sweden 0% 0%

so? They will withold 0%. Do I need to do anything?

borg · « **Reply #1 on:** May 27, 2009, 14:58 »

I am in Croatia...
And my country isn't on list....

Does it mean that SS will take me huge 30 % of my earnings...

What can I do!?

Magnum · « **Reply #2 on:** May 27, 2009, 15:09 »

Quote from: borg on May 27, 2009, 14:58

I am in Croatia...
And my country isn't on list....

Does it mean that SS will take me huge 30 % of my earnings...

What can I do!?

Do the paperwork I guess.

Why´d they need to leave us with

? They will be bombarded with mails...

Bateleur · « **Reply #3 on:** May 27, 2009, 15:14 »

As understand it (as British Citizen who has never been to the USA and is a resident of Switzerland, also 0%) we are required to:

1) Obtain a 'U.S. Individual Taxpayer Identification Number (ITIN)'. This can take 4-6 weeks.

2) Then, with this number, fill in the U.S. Internal Revenue Service (IRS) Form W-8BEN

3) Once these things have been done and approved we will be granted the 0% tax status. But, until steps 1 and 2 have been completed we will be subject to a 30% Withholding Tax.

Please correct me, someone, if I'm wrong.

I object to this most strongly.

I know that the USA considers that it rules the world, but I fail to see why I should give the US authorities the details they require. I have no connection whatsoever with the country and my personal details are none of their business. No other country has the gall to do this.

I am very seriously considering closing my Shutterstock account. It will be tough, as it is one of my better earners, but I'll find other agencies in other countries - countries that don't act in such a high-handed way - and that will make up for it.

borg · « **Reply #4 on:** May 27, 2009, 15:21 »

http://submit.shutterstock.com/forum/abt62243.html (page bottom)

It seems to me that if the country is not on this list, they take us 30% with or without paperwork...

Please correct me if I am wrong!!!!!

madelaide · « **Reply #5 on:** May 27, 2009, 15:24 »

There is another site with this, if I remember it correctly.

As SS is based in USA, you are earning money there and their government taxes that. There are countries with a agreement that you can compensate taxes taken in one country when making your own tax reports.

Bateleur · « **Reply #6 on:** May 27, 2009, 15:25 »

Quote from: borg on May 27, 2009, 15:21

http://submit.shutterstock.com/forum/abt62243.html (page bottom)

It seems to me that if the country is not on this list, they take us 30% with or without paperwork...

Please correct me if I am wrong!!!!!

That's what it looks like, unfortunately. You're going to lose a third of your income to the Government of country with which you have no connection (I'm guessing).

Magnum · « **Reply #7 on:** May 27, 2009, 15:36 »

The war has started:

http://submit.shutterstock.com/forum/abt62245.html

borg · « **Reply #8 on:** May 27, 2009, 15:47 »

Quote from: Magnum on May 27, 2009, 15:36

The war has started:

http://submit.shutterstock.com/forum/abt62245.html

We shall fight on the beaches, we shall fight on the landing grounds, we shall fight in the fields and in the streets, we shall fight in the hills; we shall never surrender...

Phil · « **Reply #9 on:** May 27, 2009, 15:51 »

Quote from: borg on May 27, 2009, 15:47

Quote from: Magnum on May 27, 2009, 15:36
The war has started:

http://submit.shutterstock.com/forum/abt62245.html

We shall fight on the beaches, we shall fight on the landing grounds, we shall fight in the fields and in the streets, we shall fight in the hills; we shall never surrender...

LOL!

travelstock · « **Reply #10 on:** May 27, 2009, 15:52 »

Ok.. so I'm a resident of Australia - currently traveling. Assuming I get the paperwork done I still have 5% deducted that goes to the US government? Is there any way of getting this back?

I pay taxes in Australia - and now I'm supposed to pay another 5% in the US? Is this some sort of joke?

Talanis · « **Reply #11 on:** May 27, 2009, 15:55 »

Magnum, from what I understand, if you do the paperwork, you will have 0% witholding but if you don't do it, they will keep 30% and send it to the IRS. That is serioulsy pissing me off. The cost of a notarized copy of the passport I don't have would cost probably over 600$ up here in Canada. Combine that with the sales drop in the last couple of months and I'm seriously thinking about closing my account there.

Xalanx · « **Reply #12 on:** May 27, 2009, 16:03 »

Quote from: holgs on May 27, 2009, 15:52

Is this some sort of joke?

it's no joke. it's obama and his groupies.

dbajurin · « **Reply #13 on:** May 27, 2009, 16:11 »

I am from Croatia also. So there is just one option for us. Closing account

Phil · « **Reply #14 on:** May 27, 2009, 16:15 »

Quote from: holgs on May 27, 2009, 15:52

Ok.. so I'm a resident of Australia - currently traveling. Assuming I get the paperwork done I still have 5% deducted that goes to the US government? Is there any way of getting this back?

I pay taxes in Australia - and now I'm supposed to pay another 5% in the US? Is this some sort of joke?

to my limited understanding, it goes on your tax return as tax payed in another country on your ss income. of course if the tax office says your a hobby then ss income doesnt appear on tax return and whether you can get it back I dont know. to my thinking, all future tax returns will have to be done by an accountant if nothing else but to minimise the chnace of audit (sounds like factors will trip the audit flag to me).

I'll have to go see my accountant soon

Phil

litifeta · « **Reply #15 on:** May 27, 2009, 16:30 »

There have been plenty of posts about this before. Yes, I just got notification before, so it is my fault I never did anything about this until I got the email.

The issue I have is the ATO in Australia does not have a door that swings both ways. It makes a decision on one thing, and then reverses the interpretation when it suits you.

A few years ago I had a web business that was struggling. They deemed that because it made less than $20k p/a it was a hobby, therefore I could not claim my costs.

And you wait, when they receive notification from the US you have paid taxes there, try and claim it is a hobby from an income perspective.

PeterChigmaroff · « **Reply #16 on:** May 27, 2009, 16:38 »

Quote from: Xalanx on May 27, 2009, 16:03

Quote from: holgs on May 27, 2009, 15:52
Is this some sort of joke?

it's no joke. it's obama and his groupies.

Don't be silly. It has nothing to do with Obama, Bush or Franklin. You are allowed to pay taxes in your country of residency if there is a double taxation agreement between the countries. In most cases this defaults to paying 0% in USA then claiming earnings in your country of residency. I believe I got a ITIN during the Bush One admin.

nata_rass · « **Reply #17 on:** May 27, 2009, 16:42 »

Quote from: Bateleur on May 27, 2009, 15:14

No words

gostwyck · « **Reply #18 on:** May 27, 2009, 16:47 »

Quote from: borg on May 27, 2009, 15:47

We shall fight on the beaches, we shall fight on the landing grounds, we shall fight in the fields and in the streets, we shall fight in the hills; we shall never surrender...

I'm surprised and impressed that a young man from Croatia is familiar with Churchill's speeches from 60-odd years ago.

sharpshot · « **Reply #19 on:** May 27, 2009, 16:49 »

Quote from: Xalanx on May 27, 2009, 16:03

Quote from: holgs on May 27, 2009, 15:52
Is this some sort of joke?

it's no joke. it's obama and his groupies.

LOL, does he get blamed for everything now? This was going on with other US companies long before he became president.

sharpshot · « **Reply #20 on:** May 27, 2009, 16:52 »

I hope SS can open up an office in Europe and pay us from there. I will fill in the forms if I have to but there should be a better solution.

borg · « **Reply #21 on:** May 27, 2009, 16:56 »

Quote from: gostwyck on May 27, 2009, 16:47

Quote from: borg on May 27, 2009, 15:47

We shall fight on the beaches, we shall fight on the landing grounds, we shall fight in the fields and in the streets, we shall fight in the hills; we shall never surrender...

I'm surprised and impressed that a young man from Croatia is familiar with Churchill's speeches from 60-odd years ago.

Oh!

This is a fabulous speech, and it would be a shame to me,if I've never heard ...
We are very globalized nation with an extensive general culture...

Also comrade Stalin would say: Closing of a one microstock portfolio is a tragedy,but closing of million portfolios is just statistics...

Magnum · « **Reply #22 on:** May 27, 2009, 17:02 »

Quote from: Talanis on May 27, 2009, 15:55

Magnum, from what I understand, if you do the paperwork, you will have 0% witholding but if you don't do it, they will keep 30% and send it to the IRS. That is serioulsy pissing me off. The cost of a notarized copy of the passport I don't have would cost probably over 600$ up here in Canada. Combine that with the sales drop in the last couple of months and I'm seriously thinking about closing my account there.

Notarized copy of passport ! Is that serious?

All unemployed in the US. Send application to the IRS. They´re about to hire cause of witchhunt of microstockers

Oldhand · « **Reply #23 on:** May 27, 2009, 17:03 »

Double indemnity taxation - I live in the UK, so if I do nothing, it will be 0% withheld as that is the current tax agreement. It is up to me to declare income in the UK earned overseas. You don't pay tax on income twice. (US/UK).

If I lived in somewhere such as Croatia with no taxation agreement, I am due to pay 30% to the US government, and then still pay tax on my earings to Croatia as there is no agreement.

Reading Shutterstocks statement, it seems they are liable for any tax due on payments made by them to us prior to this announcemet.

"Do I owe any U.S. withholding taxes on my earnings from Shutterstock for previous months?

No. If U.S. withholding tax should have been withheld from prior Shutterstock payments to you, Shutterstock is responsible for those withholding taxes. "

They are getting their house in order, no doubt after accountancy and legal advice.

Oldhand

Magnum · « **Reply #24 on:** May 27, 2009, 17:18 »

I vote for Oldhands theory. You mean if it´s 0% for your country. do nothing. Right? seems logic.

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