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Shutterstock Photographer Forum Forum Index : Tax Witholding Discussion for Foreign Submitters :
IRS
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lissic


Joined: 16 May 2005
Posts: 2

Post Posted: Wed May 27, 2009 2:11 pm     Reply with quote

Hello,

I am from Germany and cannot believe I have to provide this ITIN number.

ALL agencies I am working with have given up this painful procedure. Even Getty only requires a W8BEN without the ITIN.

Please Shutterstock let me just send my W8BEN without the cost and the pain that is involved in obtaining an ITIN.
clauds22


Joined: 09 Feb 2006
Posts: 213
Location: Germany

Post Posted: Wed May 27, 2009 2:18 pm     Reply with quote

that doesn't sound too good... what pain and cost is actually involved there?

Best,
Claudi
jasminam


Joined: 12 Nov 2006
Posts: 13

Post Posted: Wed May 27, 2009 2:18 pm     Reply with quote

What is IRS Withholding Rates for Croatia?
robsnowstock


Joined: 30 Apr 2008
Posts: 5
Location: the crumbling planet!

Post Posted: Wed May 27, 2009 2:20 pm     Reply with quote

What is this as well.
Some form of bureaucratic hassle for people who get a small commission on their images anyway?
Incredible!!

what tax do they withhold at present?

I will see if this is really worth the hassle.
dolgachov


Joined: 03 May 2006
Posts: 219
Location: Estonia http://dolgachov.com/forum

Post Posted: Wed May 27, 2009 2:22 pm     Reply with quote

Hello, i'm from Estonia.

all these years i'm paying personal income tax from every penny i make on SS.

now table shows 10% for my country.

does it mean i can pay 10% to IRS instead of much bigger tax rate i pay in Estonia?

or does it mean i have to pay additional 10% to IRS now and then still pay tax here at home?

and if i'll not obtain this IRS number, does it mean i must pay 30% to IRS first then still pay tax at home?

i'm lost and confused now.
aetherial


Joined: 14 Jul 2008
Posts: 169

Post Posted: Wed May 27, 2009 2:25 pm     Reply with quote

My question is:

if a contributor is a non-US resident of a country that doesn't have a tax withholding treaty with USA (such as my country for instance), does that mean that said contributor doesn't have to fill any forms and shutterstock by default retains 30% of his earnings?

if such contributor doesn't fill any of those forms, is that situation OK with IRS, I mean, is it legal and you're not breaking any US law - just forget about 30% of one's proceedings. I wouldn't want to be unable to enter US one day because of some beaurecratic mumbo-jumbo that I didn't know anything about and couldn't do anything about...
zmajdoo


Joined: 10 Aug 2006
Posts: 35
Location: Serbia

Post Posted: Wed May 27, 2009 2:28 pm     Reply with quote

Am I mistaken or if my country isn't on the list (the one at http://submit.shutterstock.com/forum/viewtopic.php?t=62243) I won't be able to avoid 30% tax on all my future SS payments?
makalu


Joined: 15 Dec 2005
Posts: 157
Location: Poland

Post Posted: Wed May 27, 2009 2:34 pm     Reply with quote

I'm paying 9,5% income tax in Poland (19% of income minus 50% for "creative activity protected by copyrights" or whatever, anyway it becomes 9,5% in the end).

Why should I pay 10% now and what about the taxes I've been paying here in Poland? Should I still pay them or what?

Now about the ITIN. The process may take more than 4-6 weeks, for example when someone's passport's validity has just finished. It takes 4-6 weeks to make a new passport, then next 6 weeks for ITIN. What about the tax withholding for these 12 weeks or something? When does the whole thing start? Is IRS going to take 30% of my income until I do that?
lot


Joined: 29 Dec 2006
Posts: 119
Location: Munich

Post Posted: Wed May 27, 2009 2:44 pm     Reply with quote

If I want to fill out form W7 it says I need to provide:

"1(d) A signed letter or document from the withholding agent, on official letterhead, showing your name and account number, and evidencing that an ITIN is required to make distributions to you during the current tax year which are subject to IRS information reporting or federal tax withholding."

Where do I get that signed letter? Also, I have not received any Email as it was claimed in the post by Shutterstock

What can I do here?
lissic


Joined: 16 May 2005
Posts: 2

Post Posted: Wed May 27, 2009 2:48 pm     Reply with quote

I have heard from colleagues that they have even consulted a lawyer to obtain the ITIN, but even with the help of a professional the IRS sent the form back because of "Formal errors".

No, thank you very much. Please tell us that it is sufficient to send a W8BEN as there is a double taxation agreement with Germany.
caveman73


Joined: 17 Feb 2007
Posts: 55

Post Posted: Wed May 27, 2009 2:50 pm     Reply with quote

Totally confused! Is the 30% withheld and payed to the submitters country and he doesn't have to pay taxes for it himself? Or is it additional taxes??

I am seriously on the verge of deleting all of my images from SS.
anmax


Joined: 03 Mar 2006
Posts: 38
Location: Toronto

Post Posted: Wed May 27, 2009 2:54 pm     Reply with quote

I guess we should expect a better royalty split then. Like 50/50. What the... No other agency asked me about it.
jmpaget


Joined: 05 Sep 2007
Posts: 957
Location: UK

Post Posted: Wed May 27, 2009 2:56 pm     Reply with quote

lot wrote:
If I want to fill out form W7 it says I need to provide:

"1(d) A signed letter or document from the withholding agent, on official letterhead, showing your name and account number, and evidencing that an ITIN is required to make distributions to you during the current tax year which are subject to IRS information reporting or federal tax withholding."

Where do I get that signed letter? Also, I have not received any Email as it was claimed in the post by Shutterstock

What can I do here?


I have received a letter, although unsigned, in the email from Shutterstock. Started a post requesting confirmation that the letter is acceptable under the terms of the W-7, as it states 'signed'. Be pointless sending off only to find out its not valid.


Last edited by jmpaget on Wed May 27, 2009 3:00 pm; edited 1 time in total
luceluceluce


Joined: 10 Dec 2008
Posts: 1545
Location: mostly

Post Posted: Wed May 27, 2009 2:57 pm     Reply with quote

Yes. This is very not funny. And extremely confusing for 'aliens' who are generally more familiar with our own countries' tax systems... : (

IRS what the hell?

So, to get this straight - the percentage after your country name is how much tax they take?

UK is 0%. Which sounds like good news (i think many countries have double taxation relief agreements) - but if we dont fill these forms, then automatically 30% gets taken???????

!!!! fPHMPH

4-6 weeks for this number. Presumably there's enough time before the first 30% goes out...

I think i would have liked to have known about this sooner.

Also, if i get a US tax number, does that mean i get benefits in the US because i pay tax? Do i get a passport because, honestly, i like mine.

and also, a previous poster made an interesting point about breaking US tax laws if we don't - could we go to Gitmo when innocently travelling to florida on holiday?
: ) : ( funny not funny
x
limonzest


Joined: 28 Apr 2008
Posts: 3

Post Posted: Wed May 27, 2009 2:59 pm     Reply with quote

lissic wrote:
I have heard from colleagues that they have even consulted a lawyer to obtain the ITIN, but even with the help of a professional the IRS sent the form back because of "Formal errors".

No, thank you very much. Please tell us that it is sufficient to send a W8BEN as there is a double taxation agreement with Germany.


Totally agreed with lissic, cut the cr*p please and let us send a W8BEN. AT least for country with a double taxation agreement.
 
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