I had a closer look at this and the only real hassle I can see is getting my documentation notarized.  It would be OK if we had more time to do this but it looks like it is unlikely I will get my ITIN before the July payout.  SS should give everyone a few month to sort this out.

I would suggest getting those papers in order because it is only a matter of time before the other sites do the same.  It isn't as big a job as it appears.

If you qualify for an EIN you can get it over the phone (and the official papers will be sent in the mail) speading things up a bit.  IRS number +1-215-516-6999 That is how I got my number a while back when another site needed it.

Then just fill out this
W-8BEN Form Certificate of Foreign Status http://www.irs.gov/pub/irs-pdf/fw8ben.pdf

 and your done.

I did not receive a letter from Shutterstock though.. and i am guessing I should have

I haven't seen anywhere telling me where to send the forms and if they just want the W-8BEN or if they want to see the EIN form as well?!

yes that is correct Peter

You should then be able to not pay tax or at least less tax on the Shutterstock money you claim on your Bosnian taxes

This is the email I received.

This letter is to advise you of potential changes in the amount of tax that may be withheld from your Shutterstock earnings.

In reviewing our files we discovered that we do not have a record of having received any US withholding tax certificates from you. Based upon the information in our files it appears that you may be a resident of United Kingdom, which has an income tax treaty with the United States that provides for a reduced rate of withholding tax on royalties.

If you are a resident of United Kingdom and qualify for benefits under the US/United Kingdom income tax treaty, you will need to complete a U.S. Internal Revenue Service (IRS) Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding. We are in the process of installing an online version of Form W-8BEN on our website; however, in order to complete Form W-8BEN you must have a U.S. Individual Taxpayer Identification Number (ITIN). If you do not currently have an ITIN, you can obtain one by filing a Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. This process takes only 4-6 weeks and could reduce your withholding taxes significantly.

Please complete the most recent version of Form W-7 by checking Box a (Nonresident alien required to obtain ITIN to claim tax treaty benefits), providing the information requested in Lines 1 through 6, and signing the form where indicated. You must provide certified or notarized copies of documents, such as your passport, that substantiate the information contained on Form W-7.

After completing the W-7 form and providing the required documentation as described above, you can apply for an ITIN in any of three ways:

1. by mail through the IRS, with details available here:

http://www.irs.gov/individuals/article/0,,id=96287,00.html

2. using the services of an IRS-authorized Acceptance Agent in your country

3. by visiting an IRS Taxpayer Assistance Center in Frankfurt, London, or Paris, where they will provide in-person help with ITIN applications on a walk-in or appointment basis.

http://www.irs.gov/localcontacts/article/0,,id=101292,00.html

Please note that without an ITIN and a completed IRS Form W-8BEN on file at Shutterstock, we will be required to deduct a 30% US withholding tax from royalties payable to you.

We will send you a separate email when our online Form W-8BEN is ready for use. Your early June royalty payment will not be subject to withholdings but subsequent royalty payments may be.

If you have questions on tax withholding from your Shutterstock earnings, please visit our submitter forum.

 

Thank you for your cooperation and attention to this matter.

 

Best Regards,

Shutterstock Images LLC

Thanks for the info sharpshot.  So they didn't really say where to send it, I suppose just back to same email address? Can you post that email address here or send it as a PM.

And just to repeat myself, if you need the ITIN try calling the IRS and save yourself some time and paperwork
IRS number +1-215-516-6999

Leaf, it's all nice since we are in Europe, me in UK you in Norway?! We sure can get this sorted. But it is a huge problem for people who are not in countries that has a tax treaty with US. I don't think the world becomes a great place if we only think about saving our own butts. SS or any company needs a different solution.

Quote from: cidepix on May 28, 2009, 02:43

Quote from: leaf on May 28, 2009, 02:21

Thanks for the info sharpshot.  So they didn't really say where to send it, I suppose just back to same email address? Can you post that email address here or send it as a PM.

And just to repeat myself, if you need the ITIN try calling the IRS and save yourself some time and paperwork
IRS number +1-215-516-6999

Leaf, it's all nice since we are in Europe, me in UK you in Norway?! We sure can get this sorted. But it is a huge problem for people who are not in countries that has a tax treaty with US. I don't think the world becomes a great place if we only think about saving our own butts. SS or any company needs a different solution.

yes i agree it is a terrible solution for those who have to have any tax withheld or have to jump through ridiculous hoops to get the papers in order.  What else could shutterstock do though besides moving their office to another country?  perhaps they should head over to Ireland like Snapvillage did.

That's the solution. But even for us to provide the original passport or pay ridiculous amounts for the identification as they state on SS forums is unacceptable. If moving to Ireland will sort it then they should, without doubt.

It's actually pretty simple here. Notary offices are everywhere and they do it for $10.

I just found out I will have to fly to an area North of Manila (Angeles) 950km North from here, and queue there for an appointment. Flight 150$, taxis, buses, hotels another 250$. Since official offices in the Phils are notorious for their many days off and long waiting queues (you can avoid those by 20$+ if you're lucky) under the table, and the Philippine mail is not an option (corrupt, fraud) that joke will cost me a week and let's say 500$. Just because that IRS is a bunch of red-taped dinosaurs that want snail mail and can't handle their business online, apparently, and that in a global business environment, with contributors from all over the world.

I can't also deduct my costs from that 30% tax, and my costs are a large part of my microstock income. The IRS treats it as pure profit. No taxation without representation, remember?
Shutterstock can try to strike a deal with the IRS where they obtain a global exemption of the snail mail red tape, or they can start an offshore operation e.g. in Ireland like Snapvillage did.

Whatever, but I'm not going to spit out 500$ and lose a week for SS's IRS. I'm not going to put extra time in special edits (less noise, popped up colors) for SS if a sale brings only 33cents - 11cents = 22cents. If SS wants to be an all-American operation, so be it. I don't pay taxes to a country that supported Bush and his neocon morons for 8 years and that brought us the credit crunch.

1. Our buyers probably are not all Americans, only agency in the territory of USA, but this is Internet or global business..

2.SS is only WORLD WIDE DISTRIBUTION CHANNEL for our work, and we pay commission to SS for that...

3.I dont have work permission in US. So why I need to pay tax to US government?

4.I take my shots outside the USA.


Conclusion question, who need to pay tax in USA?

One other agencie that is base in US only ask me for the W-8BEN form.
I don�t need one IRS number or to pay tax in US.
If one agencie manage to solve the problem with only the W-8BEN, way did SS ask for ITIN and a lot of information that is very hard to non-US citizens to obtain?

Since January that my sales at SS as drop for more that 60%. I need almost 2 months to reach to the minimum payout, the dollar is falling. This is to much for 40� month. I prefer close my account.
I pay taxes in my country! Is where i live and where i need roads, schools, medical care!
In my opinion SS must pay tax because they are US firm. I�n not employe of SS!!!

There's already petition going on against SS, where people say they'll delete their portfolios if this tax rule won't be somehow changed:
http://www.gopetition.com/online/28117.html

and the sign-ins:
http://www.gopetition.com/online/28117/signatures.html

those numbers are growing fast!

EDIT: looks like Yuri Arcurs also signed this petition with threat of removing all his images (look at #97)---it's fake

For those of us affected, this effectively cuts commissions by 30%
so we are earning

17 cents per download
through
26 cents at the highest level

I have signed the petition and will be removing my portfolio the moment they force me to pay US tax.

EDIT: looks like Yuri Arcurs also signed this petition with threat of removing all his images (look at #97)---it's fake

that one looks fake

EDIT: you updated is sooner than I commented

On the positive side, this might eliminate many of the fake subscribers that contribute stolen materials.