Shutterstock Photographer Forum :: View topic - Withholding taxes

mackin43 · Site Admin Joined: 20 Mar 2008 Posts: 427

Dear Submitters,

We are reading your concerns carefully and we understand this is a lot of information to absorb. Please keep in mind that these are not our regulations, they are I.R.S. regulations and we are a U.S. company. Our goal is compliance with applicable U.S. law.

We are collecting all of the questions you are asking and we are going to answer them in a new thread so that the answers can be easily found. Any legitimate question posed in this thread will be answered and anyone being abusive will be banned.

Thank you

g2studio · Joined: 10 Jul 2008 Posts: 323 Location: Naples, Italy

Pleasi I'd like to know what is the meaning of "providing a TAX RETURN"... I do not pay any taxes cuz I'm a student and live in Italy, I do not own anything to pay tax for... so, maybe since it's a royalties issue I do not have to provide any???

Another question: where do I get this if I do not have to provide a tax return????

thegame · Joined: 25 Jul 2008 Posts: 122 Location: Vienna, Austria

I am from Austria, the table says 0% taxes for images... I will not submit the form: What will happen? 0% taxes or 30% like in the mail?

I am a student and do not even pay income-taxes in Austria as the minimum is 700 Euros per month to pay. So if I am earning more than 1000 Dollars I would have to pay taxes. Why can the US ask for taxes from somebody who is earning small change with a lot of work? What is the minimum income to pay taxes in the US? I am not even working in the US, so why should I pay taxes in the US?

Shouldn't SS pay the taxes?

algol · Joined: 03 Oct 2007 Posts: 677

Question - is it possible to temporarily disable my portfolio once I receive my next payout and reinstate it if necessary once all of this has been worked out?

I don't want to get into a knee-jerk reaction here, but I am certainly opposed to supplying personal and company information (more than my own country requires for tax purposes!) to the US IRS and do not want a cent of my sales commission taxen by them in tax.

I'd be grateful for an answer. Thank you.

overthehill · Joined: 22 Oct 2005 Posts: 43 Location: Manchester, UK

Okay. I do not want to provide all that personal information to a foreign country. Will I be able to offset the 30% you withhold against the legitimate tax I pay in my own country? i.e. will SS provide me with any documentary evidence of the amount they have withheld for the US IRS?

Thanks

marilyna · Joined: 02 Nov 2005 Posts: 44

Please confirm whether my solicitor, based in Wales United Kingdom, has the power to certify my passport that needs to be attached to form W-7?
If not can I get a local Justice of the Peace or Magistrate to certify it?

Also, if I am unable to obtain and complete Form W-8BEN by the deadline set by you, due to IRS delays in obtaining the ITIN number (which I anticipate knowing how inefficient and slow they can be), once I submit the form to you after the deadline, will you then be in a position to return any tax deducted from me?
I personally feel that the time limit imposed is insufficient to complete the necessary documentation.
Can the deadline therefore be extended?

Also is it absolutely necessary to obtain the ITIN number, there seems to be confusion as to whether this is needed, being that,
"a Form W-8BEN provided without a U.S. taxpayer identification number (TIN) will remain in effect for a period starting on the date the form is signed and ending on the last day of the third succeeding calendar year, unless a change in circumstances makes any information on the form incorrect."

marilyna

baz777 · Joined: 03 Dec 2008 Posts: 3510 Location: No idea, I'm old!

‘United Kingdom 0% 0%’

Is this applicable only if the forms have been completed?

If the forms are not completed are you obliged to deduct 30% from all earnings?

gudellaphoto · Joined: 11 Sep 2006 Posts: 1151 Location: Hungary

My question:

It seems to be tax for money earned in the US

I don't work in the US. I don't work for a company in the US. I just sell images and SS take it's comission from it. Even the buyers who pay for them are from all over the world. So why is this law applies to us?

If in my country the rate is 0% why must I go through all this? I don't think SS can be sued for not paying the 0 dollars.

What is IRS? I don't think they have the right to have my personal details.

paulgeor · Joined: 19 Nov 2005 Posts: 145 Location: Arad, Romania

lilcrazyfuzzy · Posted: Wed May 27, 2009 6:01 pm

please collect the questions, let your legal dept answer them thoroughly but in understandable english and post an FAQ

zu1u · Joined: 14 Apr 2009 Posts: 77 Location: Romania

When will the new rules apply if any time soon? And how will the new taxes be calculated? Starting from what date? Please consider many users have legitimate jobs and don't ave the time to aquire the legal forms required.

moonmeister · Joined: 22 Apr 2006 Posts: 60 Location: Glasgow, UK

I appreciate that Shutterstock are only trying to keep within the rules of their country. Hoewever, I think Shutterstock have to be very careful about how they do business with so-called 'aliens'. This situation is verging on unacceptable to me and I will be watching developments very carefully. Such a fuss and effort for such a small amount of money.

I suggest Shutterstock look into setting up branches worldwide before they become an American-only firm. Being taxed twice on my earnings is shocking. This is the kind of thing that really upsets people.

Is there not a phrase in American history that says 'no taxation without representation'? I do not have a vote in American elections. Why the hell should I give a foreign government a penny of my cash?

rformidable · Posted: Wed May 27, 2009 6:02 pm

ok, so...i'd just like to understand something...

is this new taxation applicable from the day we started getting income or from a future date?

this type of clause was not in the ss contract when i signed up...

so, in my view, ss is breaching it's contract and can be held as legally liable as submitters would be if they breached their end of the deal....

1973kla · Joined: 24 Feb 2009 Posts: 86

Dear SS admin, I understand that being an US company you should observe the IRS statements as they are, but... considering that you have my ID card which demonstrate that I am italian (5% taxes) is possible to tax me at 5% without asking this awkward ITIN code and W-7 form? For me (and others) is EXTREMELY difficult and very expensive to obtain this... My ID card says : Italian... Italy = 5% taxes (8% on footage) ... this seems simple, to me... Could you simplify the form without oblige us to have the ITIN? Is the ITIN striclty mandatory ?

C.
Rome, Italy.

swhite · Joined: 01 May 2007 Posts: 47 Location: Australia

We should not need an ITIN. The W-8BEN is valid for 3 years without it!
Link to instructions:

http://www.irs.gov/instructions/iw8ben/ch01.html

Please respond to this important statement.