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Old 12-10-2008, 01:03 PM  
curiousdog
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Join Date: Jul 2003
Posts: 81
Any original IRS document to prove your statement about 0% withholding?

Quote:
Originally Posted by u-Bob View Post
The W8BEN form is only required to be filled out for US SOURCED income. Now "US Sourced" doesn't mean where the person writing the check is, it means where the work was done by the PAYEE.
Do you have an authoritative source to prove that? Google is pretty good, but the IRS website or an IRS form, or a US law would make me feel better and would make it easier to convince affiliate program bosses

Quote:
Originally Posted by u-Bob View Post
The OECD (of which the USA is a member of) put it's head together many years ago and determined that if you OWN a webserver in a country, then the websites you have on that server are producing income SOURCED in that country. If you merely RENT a webserver in a country, the websites on it are producing FOREIGN SOURCED income.
again, any authoritative source, preferably an IRS website or form?


Quote:
Originally Posted by u-Bob View Post

Like i said, FOREIGN SOURCED INCOME IS NOT SUBJECT TO WITHHOLDING.

All that is required is that the foreign affiliate CERTIFIES they do not have any US-SOURCED income and are not a US Taxpayer, etc.

Google has it spot on, on their Adsense tax information page:

So all you need to do is add a little form to your site where non-US affiliates can click an "I'm not a US citizen and I do not have any US Activities"-button.
As I said, I believe in google, but an affiliate site rightfully can say they are not a tax authority.

Also is there an authoritative source that a simple declaration is good enough
(you might be a US citizen and might be cheating. Or you might own a web server but still be out of the reach of US law enforcement (living outside the US), so the affiliate site might get stuck with tax liabilities they can not recoup

Would it not be nice if the IRS had the required text written out somewhere so it can simply be copied?
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