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Agency Based Discussion => Shutterstock.com => Topic started by: dirkr on July 20, 2009, 11:00

Title: Shutterstock Tax center live
Post by: dirkr on July 20, 2009, 11:00
Just noticed that Shutterstock has the anounced tax center online now.

And to my relief: As an individual from a treaty country it is just an online form, no paperwork, no tax number needed.
Title: Re: Shutterstock Tax center live
Post by: Magnum on July 20, 2009, 11:07
Thatīs fantastic. I have an "Individual company"  Great news!
Title: Re: Shutterstock Tax center live
Post by: travelstock on July 20, 2009, 11:18
Yep... bad news is that there goes 5% of income (ie. I'm an Australian resident) - seeing as I just got a raise to .38c, it probably cancels that out...
Title: Re: Shutterstock Tax center live
Post by: dirkr on July 20, 2009, 11:21
Yes, for all those from non-treaty countries or from treaty countries with a withholding rate > 0% it's not only good news...
Title: Re: Shutterstock Tax center live
Post by: Pixart on July 20, 2009, 11:28
Going forward, is minimum payout of $75 before or after they take taxes?
Title: Re: Shutterstock Tax center live
Post by: borg on July 20, 2009, 12:38
It seems that non-threaty contributors have to fill W-8EN form, even with 30 % on US sales...

But what is with U.S. Taxpayer Identification Number (SSN or ITIN, EIN), i haven't any us number...!?

Title: Re: Shutterstock Tax center live
Post by: borg on July 20, 2009, 13:09
It seems that non-threaty contributors have to fill W-8EN form, even with 30 % on US sales...

But what is with U.S. Taxpayer Identification Number (SSN or ITIN, EIN), i haven't any us number...!?



I found answer, leave blank... ;)
Title: Re: Shutterstock Tax center live
Post by: sharpshot on July 20, 2009, 13:28
It took about 2 minutes to sort that out.  Well done SS (and veer for showing them how it should be done).
Title: Re: Shutterstock Tax center live
Post by: PixelBytes on July 20, 2009, 14:12
I assume that all this if for people from countries outside U.S.?  As a U.S. contributor, they already have my tax ID # and 1099 me at the end of the year.  Is there anything else I should be doing?
Title: Re: Shutterstock Tax center live
Post by: stock_fan on July 21, 2009, 21:56
At least SS got their act together and realized that the TIN no is not required. After many contributors told them so ... 

It's a bit of a worry that the initial requirement came from their Legal Counsel and supposedly from their inquiries with the tax authorities. No wonder there was an outcry.  Anyway, it's done now ...
Title: Re: Shutterstock Tax center live
Post by: Gregor909 on July 23, 2009, 17:31
Thatīs fantastic. I have an "Individual company"  Great news!

An Individual company?
Can you please explain to me what that means!
I am wasting my time on the SS forums and writing to Shutterstock's TaxHelp, and nobody can give me a clear answer.
I have a one man business! All I do is submit work that's 100% mine!
Where do I belong? In group A2 or B2?

Any help is much appreciated!
Title: Re: Shutterstock Tax center live
Post by: Maui on July 24, 2009, 08:07
IMHO, if you are not a 'legal entity', you belong in A2.
Title: Re: Shutterstock Tax center live
Post by: Gregor909 on July 24, 2009, 09:41
IMHO, if you are not a 'legal entity', you belong in A2.
I'm sorry, I googled on legal entity, but I still don't understand exactly what that means!
I know everything I need to know about taxes in my own country, but I don't know anything about the American tax system!
Title: Re: Shutterstock Tax center live
Post by: Maui on July 24, 2009, 09:45
Lookup 'legal entity' in a dictionary for your own language...
Title: Re: Shutterstock Tax center live
Post by: Gregor909 on July 24, 2009, 09:50
Lookup 'legal entity' in a dictionary for your own language...
Our tax system has other terminology. A word for word translation wouldn't make sense!

All I want to know is;
I have a one man business, what's the correct terminology for this in the American tax system? Am I considered to be an "individual"?
Title: Re: Shutterstock Tax center live
Post by: Anyka on July 24, 2009, 10:03
In Belgium "Legal Entity" means (correct me if I'm wrong) that you act as a company, and not as a private person.   You are employed by your own company, even if there's only 1 person (yourself). Therefore self-employed people are companies too.  If you live in a VAT-country, you will have a VAT-number.
This would mean you (and I) belong to group B2.  However, Shutterstock then said we have to decide (with our accountant) which type of Form W-8 is correct for us ... and there's my problem! 
Last time I asked a similar question to my accountant he let me wait for 6 months before I got an answer, and I'm sure the Shutterstock grace period will not last that long!
Title: Re: Shutterstock Tax center live
Post by: Gregor909 on July 24, 2009, 10:12
Thanks Anyka,
In that case I have a Legal Entity". I do have a VAT number.
But someone over at the SS forum said I would still be an "individual"!
Title: Re: Shutterstock Tax center live
Post by: Talanis on July 24, 2009, 12:35
I would say it depends if your company is incorporated. Do you have to get your books verified by a certified accountant at the end of the year or can you do your own taxes reports? Are you employed by your company? receiving paycheck from it? Are you making 2 taxes reports at the end of the year (one for your company and one for yourself)?

 If not, you should be in group A2 in my humble opinion ( I'm not an attorney nor an accountant though).
Title: Re: Shutterstock Tax center live
Post by: CvanDijk on July 24, 2009, 13:48
I'm also a one(wo)mancomapany (Eenmanszaak) with a VAT number. I filled in individual (A2) at Shutterstock. But I do give up my Shutterstock income at the end of the year with my tax reports, because I see it as company income. .  If you are a Onemancompany in Holland you are not what we call a in legal terms a "rechtspersoon" (I can't find a translation to English, but I think it's a lagal entity), and I think you should be that " Rechtspersoon"   to fill in Company in the Shutterstock forms.  So it all depends on you legal status. 

By the way in Holland there is a difference between being a company for the VAT taxes and for the Income tax (Inkomstenbelasting) or Corporation tax (Vennootschapsbelasting), in this case I don't think it matters if you are a Vat paying company.
And the verifing of the books also doesn't make any difference. If you are a small BV you are certain that you have to fill in Company, but you can still make your own taxreports and not with a certified accountant needed. In Holland you have to have get your books done by a certified account if you are  a middle sized BV structure, which has more than 8,8 million euros Turnover and more than 50 employees. I don't even think Yuri Arcurs has that, so I don't take you should take that as a rule.

I'm not a certified accountant, but worked as an assistent accountant and financial controller for many years. But taxes and laws change all the time, so don't pin me on this.
Title: Re: Shutterstock Tax center live
Post by: Gregor909 on July 24, 2009, 14:12
OK I got it now!
My company is called a "Sole proprietor" (eenmanszaak)

Claudia, I am afraid you filled in the wrong form.
We need to apply for an EIN and fill in the W8-BEN form.
It looks like our fellow Dutchman "devation" (Edwin) has figured it all out;
http://submit.shutterstock.com/forum/viewtopic.php?p=1017237#1017237 (http://submit.shutterstock.com/forum/viewtopic.php?p=1017237#1017237) (Dutch language)
Title: Re: Shutterstock Tax center live
Post by: abimages on July 26, 2009, 16:53
Once the relevant SS tax form has been submitted, do we receive notification of acceptance from SS?
Title: Re: Shutterstock Tax center live
Post by: HermanM on August 21, 2009, 17:04
Once the relevant SS tax form has been submitted, do we receive notification of acceptance from SS?

I guess not, since I donīt have received anything and they already witheld my $$
Title: Re: Shutterstock Tax center live
Post by: Perry on September 02, 2009, 11:59
Once the relevant SS tax form has been submitted, do we receive notification of acceptance from SS?

I'm also interested in this. Is there any way to check out if my form was accepted?