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International IM using CPA networks, are you being taxed twice with form W-8BEN ?

by Auswarrior996
6 replies
Hey guys, my CPA network is asking me for a W-8BEN form. Does this mean I will be taxed 30% in the US as well as taxed in Australia at the end of the year ?
#cpa #form #international #networks #taxed #w8ben
  • Profile picture of the author mtmjohn
    Nope. The W-8BEN form is only required to be filled out for US SOURCED income, you won't be taxed 30% in the US.
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    • Profile picture of the author Auswarrior996
      Originally Posted by mtmjohn View Post

      Nope. The W-8BEN form is only required to be filled out for US SOURCED income, you won't be taxed 30% in the US.
      Thanks for the reply. Since I'll be dealing with employees (affiliate manager, etc) from the US I am required to fill out a W-8BEN. I take it this is only for there auditing records and I will not be sent to the IRS. My understanding now is that the CPA network will not declare it as tax and I wont be taxed. However there is some conflicting information out there that says the tax will be reduced. Surely there are some international affiliates in CPA networks who would know the answer.

      I found this link which I think should definitely help others out. But like I said there is some conflicting information out there. The good thing is this is affiliate specific, and also tells you exactly what to fill out and what it means. I cant post a direct link yet, so just take the spaces out (between ht and tp) and you should be good to go.

      ht tp://w-8ben.allqoo.info/p/non-us-residents-on-us-online-affiliate-programs-33.htm
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  • Profile picture of the author motley
    I would like to say Thanks to the author of this tread. I thought about it many times before. I still confused, because I don't know do I have to fill this form or not.

    I live in Denmark, but my target market is US/Can/Aus...Global. Hostgator is my hosting provider. I mostly use CB as an affiliate links supplier (they don't ask anything), but LinkShare want me to fill my tax information. I even wanted to stop promoting LinkShare's partners products to make things easier. Until now... I hope this tread will make everything clearer.
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  • Profile picture of the author Filter
    Hey Aus

    As a fellow Aussie who has filled out many W8's with US companies, here's the facts:

    Filling out the W8 as an Aussie resident / taxpayer (if you fill it out correctly) basically says that you do not need to pay tax to the US Govt, so you will not get taxed on any US income by the US IRS. Your CPA network will send you the full amount of any commission. The W8 is more for their records, proving they do not have to withold tax on your earnings or pass back your income info to the IRS.

    It's then up to you to declare any income you make from CPA to the Aussie Tax Office on your annual return, or quarterly BAS if you are registered for GST. Remember that you can also declare any PPC costs, server costs, outsourcing costs, rent, electricity etc etc as expenses. (Get an ABN if you don't have one already)

    One note though - if you don't make a hell of a lot, you may be able to declare your income as a hobby, then it is not taxable as income, but of course you can't claim expenses either. Best to talk to an accountant if you want to go down that path.

    So in answer to your original question, no, you will not get taxed by the US

    Cheers

    p.s. Here's how you should fill it out as an Aussie:

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  • Profile picture of the author motley
    Hi Filter,

    Can I ask a question? Who has to fill a W-8IMY form? It′s written at IRC.gov, that "a person acting as an intermediary" has to fill W-8IMY. Does an affiliate marketer intermediary or the W-8BEN form matches more for affiliates?

    Thanks in advance.
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  • Profile picture of the author Filter
    Hey Motley

    First off, I'm not an accountant so please don't consider this sound financial advice

    If you're a foreign (to the USA) individual or business, simply sourcing income from the US (say through a CPA network), then the W-8BEN is the form to fill in. The -8IMY appears to be more for brokers, intermediary financial institutions etc.

    From the IRS definition:

    An intermediary is any person that acts as a custodian, broker, nominee, or otherwise as an agent for another person, regardless of whether that other person is the beneficial owner of the amount paid, a flow-through entity, or another intermediary




    From the -8IMY form itself:



    Do not use Form W-8IMY if:

    You are the beneficial owner of U.S. source income (other than income that is effectively connected with the conduct of a trade or business within the United States) and you need to establish that you are not a U.S. person. Instead, submit Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding

    Which one sounds more like you? But again, I'm not an accountant so if you want to be 100% sure and legal, it may be best to consult one in your country. Hope that helps mate





    Cheers
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