Advice needed on US tax forms for non US affiliates
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
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