Aussie Paying US Tax..

mastermoog · 05-19-2009, 08:59 AM

Hi,

I live in Perth, Australia. I am interested to know if ClickBank holds back a % of my commissions for US tax purposes? As i am not a US citizen does this mean i get all my commissions paid to me by CB? I realize i will be disclosing and therefore paying tax when i complete my yearly income tax statement here in Aus so i don't want to be stung twice. Is is the W-8Ben Form or is that for an outside resident living in US? Any other Aussies working as Affiliates please share your experiences..

Perhaps i need to contact CB on this?

Cheers for the guidance,
Simon

artwebster · 05-19-2009, 09:07 AM

CB can only charge taxes for which it is a registered collector.

For example, somehow CB has a EU VAT registration number even though it has no registered offices in the EU, and is able to charge all EU citizens the relevant VAT for each country in the EU even though the purchase is being made in US$, online, on a server in the USA (usually). This is despite that fact that EU citizens can purchase VAT free in the country of supply and make their own VAT payments on delivery of physical goods.

If CB decides it will also register as a tax collector in Australia, it will charge your customers with the relevant tax.

Whatever, since these taxes are paid by the buyer, there is no reason for them to with hold any of your commissions.

spearce000 · 05-19-2009, 11:13 AM

No, they don't withhold US income tax and social security from people outside the USA - I'm not sure they withhold tax for people in the US either (correct me if I'm wrong).

I'm in the UK, so after my bank has converted the payments into Sterling, I raise an invoice in my accounting software and square things with the taxman at the end of the year.

Scott Allan · 05-20-2009, 12:32 AM

Hi,
Being based in Australia, I have had same concerns myself. I havent used Clickbank for a while but with all my other affiliate commissions coming from US based companies I have needed to fill in what is called a W-8BEN tax form.
Its basically like our own tax forms here when someone starts a new job. This form is for residents outside of the US who are essentially deriving an income from a US source.

Different programs will have different terms of service and affiliate agreements, so you will need to check Clickbank. In my experience they will not withold US tax if you fill out this form, but they will also not release any payments owing until either the W-8BEN tax form, or a US residents tax form has been filled out along with any other conditions they may have.

That being said you will still need to declare the income to our own good old Australian Tax Office.

Hope that helped
Scott Allan

Traffic-Bug · 05-20-2009, 12:46 AM

Lot of good info in this thread.

Ken Strong · 05-20-2009, 12:51 AM

No, they don't withhold any taxes or Social Security for US residents. Normally, you only get money withheld if you're an employee receiving a regular paycheck, with a regular hourly wage or a salary.

For most online stuff a US resident is considered an independent contractor, and you're responsible for dealing with all taxes owed.

GarrieWilson · 05-20-2009, 01:09 AM

Quote:

Originally Posted by artwebster

For example, somehow CB has a EU VAT registration number even though it has no registered offices in the EU

I'm pretty sure they have an office in the UK.

maxyip84 · 05-20-2009, 01:29 AM

i am from singapore, and just started using CB service.

Can learn alot of info here though...

thank you for all the contributors...

mastermoog · 05-20-2009, 01:55 AM

Quote:

Originally Posted by Scott Allan

Hi,
Being based in Australia, I have had same concerns myself. I havent used Clickbank for a while but with all my other affiliate commissions coming from US based companies I have needed to fill in what is called a W-8BEN tax form.
Its basically like our own tax forms here when someone starts a new job. This form is for residents outside of the US who are essentially deriving an income from a US source.

Different programs will have different terms of service and affiliate agreements, so you will need to check Clickbank. In my experience they will not withold US tax if you fill out this form, but they will also not release any payments owing until either the W-8BEN tax form, or a US residents tax form has been filled out along with any other conditions they may have.

That being said you will still need to declare the income to our own good old Australian Tax Office.

Hope that helped
Scott Allan

Cheers Scott,

I'll get the W-8BEN form sorted out now.

Oh By the way you wouldn't happen to be the brother of Peter Allan would you?

Simon

Scott Allan · 05-20-2009, 09:59 AM

Hey Simon,
No Im not, but I do get asked occasionally.
Its usually when Im singing when my baby goes to Rio, haha

05-19-2009, 08:59 AM	#1
mastermoog Warrior Member Join Date: May 2009 Location: Perth, Western Australia Posts: 17 Thanks: 2 Thanked 1 Time in 1 Post Social Networking	Aussie Paying US Tax.. Hi, I live in Perth, Australia. I am interested to know if ClickBank holds back a % of my commissions for US tax purposes? As i am not a US citizen does this mean i get all my commissions paid to me by CB? I realize i will be disclosing and therefore paying tax when i complete my yearly income tax statement here in Aus so i don't want to be stung twice. Is is the W-8Ben Form or is that for an outside resident living in US? Any other Aussies working as Affiliates please share your experiences.. Perhaps i need to contact CB on this? Cheers for the guidance, Simon

05-19-2009, 09:07 AM	#2
artwebster Brutal honesty's me Join Date: Sep 2008 Location: Coín, Spain Posts: 1,032 Blog Entries: 4 Thanks: 33 Thanked 251 Times in 138 Posts Social Networking Contact Info	Re: Aussie Paying US Tax.. CB can only charge taxes for which it is a registered collector. For example, somehow CB has a EU VAT registration number even though it has no registered offices in the EU, and is able to charge all EU citizens the relevant VAT for each country in the EU even though the purchase is being made in US$, online, on a server in the USA (usually). This is despite that fact that EU citizens can purchase VAT free in the country of supply and make their own VAT payments on delivery of physical goods. If CB decides it will also register as a tax collector in Australia, it will charge your customers with the relevant tax. Whatever, since these taxes are paid by the buyer, there is no reason for them to with hold any of your commissions.
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05-19-2009, 11:13 AM	#3
spearce000 Video Warrior War Room Member Join Date: Jan 2005 Location: Near the beach on the "Kentish Rivera", UK Posts: 860 Thanks: 135 Thanked 87 Times in 75 Posts Social Networking Contact Info	Re: Aussie Paying US Tax.. No, they don't withhold US income tax and social security from people outside the USA - I'm not sure they withhold tax for people in the US either (correct me if I'm wrong). I'm in the UK, so after my bank has converted the payments into Sterling, I raise an invoice in my accounting software and square things with the taxman at the end of the year.
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05-20-2009, 12:32 AM	#4
Scott Allan Scott Allan War Room Member Join Date: Apr 2009 Location: Sydney, Australia Posts: 252 Thanks: 39 Thanked 31 Times in 17 Posts Social Networking	Re: Aussie Paying US Tax.. Hi, Being based in Australia, I have had same concerns myself. I havent used Clickbank for a while but with all my other affiliate commissions coming from US based companies I have needed to fill in what is called a W-8BEN tax form. Its basically like our own tax forms here when someone starts a new job. This form is for residents outside of the US who are essentially deriving an income from a US source. Different programs will have different terms of service and affiliate agreements, so you will need to check Clickbank. In my experience they will not withold US tax if you fill out this form, but they will also not release any payments owing until either the W-8BEN tax form, or a US residents tax form has been filled out along with any other conditions they may have. That being said you will still need to declare the income to our own good old Australian Tax Office. Hope that helped Scott Allan
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05-20-2009, 12:46 AM	#5
Traffic-Bug Senior Warrior Member Join Date: Jan 2009 Location: Oregon Posts: 1,196 Thanks: 3 Thanked 69 Times in 61 Posts Social Networking	Re: Aussie Paying US Tax.. Lot of good info in this thread.
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05-20-2009, 12:51 AM	#6
Ken Strong Marxist (Groucho) War Room Member Join Date: Nov 2005 Location: Seattle, WA, USA. Posts: 4,644 Blog Entries: 1 Thanks: 759 Thanked 1,492 Times in 707 Posts Social Networking Contact Info	Re: Aussie Paying US Tax.. No, they don't withhold any taxes or Social Security for US residents. Normally, you only get money withheld if you're an employee receiving a regular paycheck, with a regular hourly wage or a salary. For most online stuff a US resident is considered an independent contractor, and you're responsible for dealing with all taxes owed.
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05-20-2009, 01:29 AM	#8
maxyip84 Warrior Member Join Date: May 2009 Posts: 7 Thanks: 0 Thanked 0 Times in 0 Posts Contact Info	Re: Aussie Paying US Tax.. i am from singapore, and just started using CB service. Can learn alot of info here though... thank you for all the contributors...
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05-20-2009, 09:59 AM	#10
Scott Allan Scott Allan War Room Member Join Date: Apr 2009 Location: Sydney, Australia Posts: 252 Thanks: 39 Thanked 31 Times in 17 Posts Social Networking	Re: Aussie Paying US Tax.. Hey Simon, No Im not, but I do get asked occasionally. Its usually when Im singing when my baby goes to Rio, haha
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