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Author Topic: Solutions to the IRS problem  (Read 10056 times)

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« Reply #25 on: June 04, 2009, 22:45 »
0
Somebody pointed out in another thread - to my shame! - that royalties get withheld by the UK government from Alamy photographers.

Now I've been spouting big words like anti-competitive and protectionist - and I would like to learn to what extent I've been a * in this regard.

If the UK is also withholding royalties, then it is definitely not an issue just with the IRS and the U.S. And it could definitely spell more trouble for the other agencies, because now 2 precedents are there.

Really - I'm coming at this with an empty bowl at the moment.

But I do worry that this growing red international red tape will cut the small submitters out of the game. And then that will leave the micro professionals, and then the mid and macro professionals might come in and fill the gaps the hobbyists left. And then everyones' income goes down : (

Right from top to bottom we will all get less. 

Personally i don't care right now about money. But what if one day i want to go into space? Virgin Galactic tickets are something like 250,000 although i expect the price will come down significantly in a few years. Or so.

Lucy x


Just cos i'm stumbling in the dark, doesn't mean i can't guess at where the light switch is.





« Reply #26 on: June 05, 2009, 04:47 »
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The way I understand it for most Treaty members is as follows.

I think the key here is will the witheld tax be greater than the tax on profit you will be liable for?

If you think the witheld tax will be greater than what you will owe at the end of the year then fill out the forms and pay tax as required.

If you think you will be liable for more than the witheld tax then you can just let it ride and claim a credit against what you have already paid, this relates to a like scenario.

Quote
Under the standard elimination of double taxation Article in our treaties, the UK is obliged to give credit for foreign tax payable on profits, income or chargeable gains from sources within the other state against any UK tax computed by reference to the same profits, income or chargeable gains by reference to which the foreign tax is computed.


http://www.hmrc.gov.uk/manuals/intmanual/INTM163030.htm

So it looks like you can off-set the witheld tax against your own tax bill, if it was sales of 1000 and 300 was witheld, you would declare the gross 1000 within your turnover take away the costs, calculate tax on your overall profit and then off-set the 300 against what you owe. 

David  ;D

alias

« Reply #27 on: June 05, 2009, 05:43 »
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@goldenangel

belated thanks for your analysis of the US tax implications in relation to aliens.

« Reply #28 on: June 05, 2009, 08:06 »
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@goldenangel

belated thanks for your analysis of the US tax implications in relation to aliens.
Yes, that was very useful post


 

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