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Aussie Paying US Tax..

by mastermoog
9 replies
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
#aussie #paying #tax
  • Profile picture of the author artwebster
    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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    • Profile picture of the author GarrieWilson
      Originally Posted by artwebster View Post

      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.
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      • Profile picture of the author maxyip84
        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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  • Profile picture of the author spearce000
    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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  • Profile picture of the author 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
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    • Profile picture of the author mastermoog
      Originally Posted by Scott Allan View Post

      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
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      • Profile picture of the author Scott Allan
        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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  • Profile picture of the author Ken Strong
    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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