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Author Topic: updated rules at SS? what does it means?  (Read 7472 times)

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« on: January 22, 2009, 15:22 »
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one rule in particular:

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If you are a "US Person" as said term is defined by the IRS, a signed and completed IRS form W9 must be submitted to Shutterstock for Shutterstock to make payments to you. You will receive an email containing instructions on how to download and submit this IRS form to us. A W9 is used to certify under penalties of perjury that your social security number is correct and that you are not subject to backup withholding taxes. Foreign persons might be subject to U.S. income tax on income they receive from U.S. sources. If you are a "Foreign Person" as said term is defined by the IRS, a signed and completed IRS form W8 must be submitted to Shutterstock in order for you to claim a reduced rate of, or exemption from, withholding as a resident of a foreign country with which the United States has an income tax treaty. You will receive an email containing instructions on how to download and submit this IRS form to us.
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what does it mean? If I live in Bosnia (europe) do I have to submit those documents or what?


« Reply #1 on: January 22, 2009, 15:33 »
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Peter,

Yes. You will have to submit it in order to prevent them from withholding taxes on your income. I believe Bosnia has a tax treaty with the US that it has inherited from the former Yugoslavia so you will benefit from submitting that. I am not a lawyer or accountant though.

Some more updates in the SS rules:
"You may not have more than one active submitter account at any
time without the written consent of Shutterstock in each instance. If
such consent is granted, you may not submit identical images to more
than one account."

"Shutterstock reserves the right to
withhold payments due to you under the Shutterstock referral program for
up to 90 days from the date the referred submitter establishes its
Shutterstock account."

"If you receive your payments through an online payment processing
service (e.g., Paypal or Moneybookers) you may not share your online
payment processing service account with another Shutterstock submitter."

« Reply #2 on: January 22, 2009, 15:43 »
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Peter!

You will receive an email containing instructions on how to download and submit this IRS form to us.

Don't worry, they will send instructions to us!

« Reply #3 on: January 22, 2009, 15:56 »
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if they send those documents in english, how those people in offices here in bosnia can understand them? if I have to go to citty hall for aproval of that document for example.... thats stupid. then they could ask me to pay a tax from my country.... :S

« Reply #4 on: January 22, 2009, 15:57 »
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So if I submitted my W-9 last year, do I have to do it again this year? Or is it just a one time thing?

« Reply #5 on: January 22, 2009, 16:01 »
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Peter,

You are only required to send this form to Shutterstock, not to the tax authority in Bosnia. it is actually a pretty simple form:

http://www.irs.gov/pub/irs-pdf/fw8ben.pdf

I believe both W-9 or W-8 do not need to be submitted every year.
« Last Edit: January 22, 2009, 16:04 by goldenangel »

« Reply #6 on: January 22, 2009, 16:05 »
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if they send those documents in english, how those people in offices here in bosnia can understand them? if I have to go to citty hall for aproval of that document for example.... thats stupid. then they could ask me to pay a tax from my country.... :S

I think you will be (with the W8) exempt from taxation in the U.S. as a stranger .

You will decide whether you will report this earnings in your own country , as any other earnings that are not under the jurisdiction of your country...
W8 is only for agency  to report that they can send your income to you freely...

« Reply #7 on: January 23, 2009, 03:12 »
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ouh, only I fill this form and send it, thats ok. I thought my goverment has to stamp it for aproval or something... who would explain my stupid goverment, they dont even know what is internet, not to mention stock photography. here when you say to a person I sell photos on the internet, they first think of pornography! LOL! you have to explain what is stock photography to everybody.....

lisafx

« Reply #8 on: January 23, 2009, 11:40 »
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So if I submitted my W-9 last year, do I have to do it again this year? Or is it just a one time thing?

It should just be a one-time thing unless something has changed in your info or filing status. 

I assume if they need another one they will send an e-mail.  BigStock has asked me to update my info every year at this time, but I think that is for their benefit.  It isn't necessary fro the IRS.

« Reply #9 on: January 23, 2009, 12:57 »
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This recent thread may have relevant information:
http://www.microstockgroup.com/shutterstock-com/shutterstock-1099-tax-form/

Reciprocity may not apply between USA and every country, so in some cases I understand you will have no escape from paying taxes in the USA even if paying taxes later in your country.

Regards,
Adelaide

« Reply #10 on: January 23, 2009, 13:03 »
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Quote
ut if a foreigner earns income from a U.S. source (for example, by maintaining a bank account in the U.S., which earns interest), then the U.S. government can tax that income.


http://docs.law.gwu.edu/facweb/jsiegel/Personal/taxes/861.htm


« Reply #11 on: January 23, 2009, 14:50 »
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It's so hard to know!
The latest post (in regard to non US residents)  in the SS General Discussion forum, is that the changes are "mainly for record keeping purposes"

And - if you are wondering about Tax Treaties and which country has with the US, then this link might be useful.

http://www.unclefed.com/ForTaxProfs/Treaties/index.html
« Last Edit: January 23, 2009, 14:55 by takestock »

« Reply #12 on: January 24, 2009, 00:22 »
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ouh, only I fill this form and send it, thats ok. I thought my goverment has to stamp it for aproval or something... who would explain my stupid goverment, they dont even know what is internet, not to mention stock photography. here when you say to a person I sell photos on the internet, they first think of pornography! LOL! you have to explain what is stock photography to everybody.....

I living in the country when you say stock photography, everyone says "what? you sell photos of cows?? (which of course I do as poor selling stock :),  then you explain selling photos in libraries on the net and you can see on plenty of peoples faces they are thinking porn :)

Phil

RT


« Reply #13 on: January 24, 2009, 08:14 »
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Reciprocity may not apply between USA and every country, so in some cases I understand you will have no escape from paying taxes in the USA even if paying taxes later in your country.

Regards,
Adelaide

Just to clarify a bit on Adelaides statement, if that did happen you would only pay tax in your own country on the Net amount received after the US have taken their cut, you wouldn't be paying tax twice on the commission.

For example:

Commission $100
US tax $30 (or whatever the rate is)
You'd pay the tax on the remaining $70 in your own country.




« Reply #14 on: January 24, 2009, 10:36 »
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Reciprocity may not apply between USA and every country, so in some cases I understand you will have no escape from paying taxes in the USA even if paying taxes later in your country.

Regards,
Adelaide

Just to clarify a bit on Adelaides statement, if that did happen you would only pay tax in your own country on the Net amount received after the US have taken their cut, you wouldn't be paying tax twice on the commission.

For example:

Commission $100
US tax $30 (or whatever the rate is)
You'd pay the tax on the remaining $70 in your own country.




Why would I pay any tax?! It is ridiculous to pay a tax in my country, when I earn money outside my country. My country did nothing to provide me this job. I did all by myself. Why should I pay them anything?

A lot of people from bosnia work in Iraq with US companies, they earn about 5.000$ per month, and they dont pay any tax to the country! So why should I?! pft.... they can kiss my as*.....  ;D

« Reply #15 on: January 24, 2009, 13:32 »
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Don't worry Peter...

Problem is solved probably with the W-8 when SS requested from you ...

Then is everything on contributor's  decision...

RT


« Reply #16 on: January 24, 2009, 15:18 »
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Why would I pay any tax?! It is ridiculous to pay a tax in my country, when I earn money outside my country. My country did nothing to provide me this job. I did all by myself. Why should I pay them anything?

A lot of people from bosnia work in Iraq with US companies, they earn about 5.000$ per month, and they dont pay any tax to the country! So why should I?! pft.... they can kiss my as*.....  ;D

Peter,

You're not earning money outside your country, you're operating your business from within your country aren't you, it just happens that you sell internationally.
It's no different than if you had a factory producing toys and ditributed them abroad, you'd still pay taxes on the profits you make within your own country.

The people you mention in Iraq are in a completely different situation because they are physically there.


« Reply #17 on: January 24, 2009, 16:26 »
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Why would I pay any tax?! It is ridiculous to pay a tax in my country, when I earn money outside my country. My country did nothing to provide me this job. I did all by myself. Why should I pay them anything?

A lot of people from bosnia work in Iraq with US companies, they earn about 5.000$ per month, and they dont pay any tax to the country! So why should I?! pft.... they can kiss my as*.....  ;D

It's definitely not a good idea to publically flaunt the fact you aren't paying taxes.

« Reply #18 on: January 24, 2009, 17:20 »
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Quote
Why would I pay any tax?! It is ridiculous to pay a tax in my country, when I earn money outside my country. My country did nothing to provide me this job. I did all by myself. Why should I pay them anything?

A lot of people from bosnia work in Iraq with US companies, they earn about 5.000$ per month, and they dont pay any tax to the country! So why should I?! pft.... they can kiss my as*.....  ;D

That tells us a lot about your country. Well our country are neighbors so I know a lot about it but whole world will learn a lot about Bosnia and Hercegovina by your words. Me as a neighbor probbably can try understand why you are doing that but on the other hand even I can't understand it.
Even those people in Iraq has to pay taxes because their residence is in Bosnia. If they change residence to Monte Carlo, like most of the tennis players, they has to pay taxes to the government of Monte Carlo.
But in 21st in the middle of the "Old world" means Europe there is one country where is no law or at least their residents don't respect their own country.
But to be truth about it and to be honest to the rest of people who read this and don't understand why, this problem isn't in Peter or BiH residents. Problem is in recent war and politicians witch doesn't want to respect law. They are first who don't do things by the law.
So who other will.
Well you all in BiH has to learn why are you paying taxes. Not because you are earning outside your country but because you are living in it. 
Me, as living in a neighbor country, I hope that you will one day has a decent government and pay taxes to your country. Best wishes to you all there!


« Reply #19 on: January 24, 2009, 18:43 »
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Why would I pay any tax?! It is ridiculous to pay a tax in my country, when I earn money outside my country. My country did nothing to provide me this job. I did all by myself. Why should I pay them anything?

Because it's the law?  ;D

I don't think it is right to pay income taxes from individuals, I think only investment earnings should be taxed.  But unfortunately my government doesn't agree with that.  Our tax reports have a field for earnings abroad, so if I don't fill that in, I am deliberately doing something against the law.  I don't like to be against the law.

Regards,
Adelaide

« Reply #20 on: January 24, 2009, 19:01 »
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The thing is that most countries have a law that you dont have to pay nothing if you earn it abroad and you were living abroad while working for certain amount of days in that year and payed taxes there ( In Croatia is something about more than 196 day yearly ) , and Im sure similar law stands in Bosnia so , Peter that's why most people don't have to pay nothing.

Even if that country doesn't have an agreement on avoiding double taxes with Croatia, here  you dont have to pay nothing , but you have to prove that you were absent more than 196 days in that year and that you payed your taxes there.

If you had work there for less than 196 days and agreement between 2 countries doesn't exist you will pay double taxes , in the same way RT wrote , 100$ earned , 30% tax payed abroad , you pay whatever % you pay in your country on the sum of 70$.

I think all ex YU countries don't have that agreement so if US charge us we would have to pay taxes once again in our countries on the amount that was left after paying firs tax in US , but I hope it wont happen.





Anyway , out of the theme , Im curious , if someone wants to share how much taxes you others have to pay in your countries on microstock income ?


In Croatia it something like this :


Lets say you got 1000$ on your bank account this month.

The law protects authors work so you pay your tax in the way that 30% of your income is nontaxable.

So you have 700$ on which you have to pay:

1) 25%  like main tax which is 175$

2) there is tax on tax you pay to the town you live in , that varies from county to county , but is 18% for me so I have to pay 18% on those 175$ of my main tax, and that's
 31,5$.

So that would be 1000 - 175 - 31,5 = 793,50$.

I would also have to give a piece of those 793$ to social insurance but you don't have to pay that cause that authors work law  protects copyrighted work from that share.


I guess its not that big share comparing with some other countries.

Bad thing is that you cant be compensated for your work expenses paying that way , but you would have to start a small business , but those morons told me
I would have to issue a bill for every image sold , and I would have to bother with ton of paperwork and stuff like that that I'm not yet ready to play with.





 




 
« Last Edit: January 24, 2009, 19:09 by Lizard »

« Reply #21 on: January 24, 2009, 19:14 »
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Even if that country doesn't have an agreement on avoiding double taxes with Croatia, here  you dont have to pay nothing , but you have to prove that you were absent more than 196 days in that year and that you payed your taxes there.
So you don't have to pay nothing but you have to pay tax somewhere! LoL
 ;D

« Reply #22 on: January 24, 2009, 20:36 »
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Ok, I'm from Serbia, should I expect the same email to be received? Or they act randomly on this issue.

« Reply #23 on: January 24, 2009, 20:42 »
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Probably your antivirus software delete mail as spam :)

« Reply #24 on: January 24, 2009, 20:50 »
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I have no antivirus sw, I'm using Mac  ;D


 

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