Advice needed on US tax forms for non US affiliates

by djn001
3 replies
Hi,

Can anyone advise me what to do when you sign up as an affiliate for an American Company, but you are not a US citizen (I am from the UK).

I have recently created a site for my chosen niche, and I have had a couple of recommendations for Companies to promote because they pay good commissions. When I signed up for their affiliate program, I am requested to fill out forms W-8BEN, or W-8ECI, whilst another Company was asking for a Social Security Number. I have tried emailing these Companies to explain to me exactly what is required, but neither of them seem to be very helpful, telling me that they are not legally allowed to advise me.

I have briefly read some explanatory notes for form W-8BEN, and the bit that stood out was:Purpose of form. Foreign persons are subject to U.S. tax at a 30% rate on income they receive from U.S.

To add to my confusion, one of the Companies did email me back and tell me that they do not deduct any tax from affiliate commissions that I earn and that it is my responsibility, so do they mean that I have to pay US tax as well as UK tax?

I was also advised that I can claim to be exempt from US tax by getting a Tax ID Number (TIN).

This is all new to me, I was just expecting to get the full payment and declare my earnings (if I am lucky enough to get any!) in the UK.

So, if anyone can make things a bit clearer for me and give me some advice on this, then I would be very grateful.

Thanks in advance

Dave
#advice #affiliates #forms #needed #tax
  • Profile picture of the author PhoebeSmellyCat
    I think it's best that you consult with an accountant familiar with internet marketing.

    When it comes to things like tax laws, you do not want to rely on the advice from strangers on a forum.

    As far as I know, yes, you are subject to taxes here and in your own country.

    Your CPA should be able to give you better answers.
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    • Profile picture of the author djn001
      You are probably right, I just thought that someone who has experience in this area might be able to offer some advice.

      If It is correct that I would pay both US and UK tax, then it doesn't seem worth promoting a US Company.
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  • Profile picture of the author HigherPrThanGod
    Originally Posted by djn001 View Post

    Hi,

    Can anyone advise me what to do when you sign up as an affiliate for an American Company, but you are not a US citizen (I am from the UK).

    I have recently created a site for my chosen niche, and I have had a couple of recommendations for Companies to promote because they pay good commissions. When I signed up for their affiliate program, I am requested to fill out forms W-8BEN, or W-8ECI, whilst another Company was asking for a Social Security Number. I have tried emailing these Companies to explain to me exactly what is required, but neither of them seem to be very helpful, telling me that they are not legally allowed to advise me.

    I have briefly read some explanatory notes for form W-8BEN, and the bit that stood out was:Purpose of form. Foreign persons are subject to U.S. tax at a 30% rate on income they receive from U.S.

    To add to my confusion, one of the Companies did email me back and tell me that they do not deduct any tax from affiliate commissions that I earn and that it is my responsibility, so do they mean that I have to pay US tax as well as UK tax?

    I was also advised that I can claim to be exempt from US tax by getting a Tax ID Number (TIN).

    This is all new to me, I was just expecting to get the full payment and declare my earnings (if I am lucky enough to get any!) in the UK.

    So, if anyone can make things a bit clearer for me and give me some advice on this, then I would be very grateful.

    Thanks in advance

    Dave
    In my personal opinion everyone should stop paying taxes. But that wasn't the answer you were looking for.
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