Question about offshore tax

4 replies
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Hi guys,

I'm getting my first cheque from infolinks but am a little confused as they've asked me the following question.

2. Non-U.S. Business or Individual with income effectively connected to the U.S. - must submit the Internal Revenue Service (IRS) form W-8BEN.

3. Non U.S. Business or Individual without any income effectively connected to the U.S - is required to declare No US Activities - No forms are necessary.

Now I also get cheques from Clickbank but have never encounted this before and now I'm a little worried I haven't submitted the right documentation to clickbank.

This may sound like a dumb question, but would I fall into number 2 or number 3, would affiliate payments fall into number 2? I live in New Zealand.
  • Profile picture of the author Martin2010
    Hi Big Norm,

    Get yourself over here: www.taxwizards.eu

    Jarl's a top bloke and he'll look after you.
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  • Profile picture of the author BigNorm
    Thanks Martin much appreciated.
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  • Profile picture of the author sarahstaar
    you should not use affiliate links!!
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  • Profile picture of the author seasoned
    BigNorm,

    According to the W-8BEN form you would be guilty of PERJURY if you signed it for clickbank! You would be LYING about condition #3, that the income didn't originate from a US source etc...

    BTW the TITLE of it is "Certificate of foreign status of beneficial owner for united states tax withholding".

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

    Do not use this form for:
    A US citizen or resident
    A person claiming income is connected with trade n the united states
    ● A foreign partnership, a foreign simple trust, or a foreign grantor trust (see instructions for exceptions) W-8ECI or W-8IMY
    ● A foreign government, international organization, foreign central bank of issue, foreign tax-exempt organization,
    foreign private foundation, or government of a U.S. possession that received effectively connected income or that is
    claiming the applicability of section(s) 115(2), 501(c), 892, 895, or 1443(b) (see instructions) W-8ECI or W-8EXP
    ● A person acting as an intermediary W-8IMY
    Steve
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