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Sunny Day · 06-02-2012, 03:22 AM

Due to changes in the US tax law, all businesses are required to issue 1099's to every business or individual the pay more than $600 in a year. Whether or not a W9 or W8 is on file.

W8 Instructions

"Purpose of form. Foreign persons are subject to U.S.tax at a 30% rate on income they receive from U.S.
sources that consists of:
Interest (including certain original issue discount (OID). Dividends; Rents; Premiums; Annuities;
Compensation for, or in expectation of, services performed; connected with the conduct of a trade or business in the
Substitute payments in a securities lending transaction; Other fixed or determinable annual or periodical gains, profits, or income."

The key sentence is "Compensation for, or in expectation of, services performed;"
You as an affiliate are expecting compensation for a service performed.

The US business is paying you money. To prove they paid out the money they must receive a W9 from any US based company or individual or a W8 from a foreign based company or individual. If they don't have this document on file, they are required to withhold 30% of the money due you. Companies don't want to fuck with the hassles of withholding. So they put in a policy, no W9 or W8, no payment.

You don't want to get paid, then don't fill out the form.

The statement
"If you are not a US citizen/company etc and do not own any property in the US and have no employees in the US, you must not file a w8ben form. If you do, then you're making a false statement."
IS TOTALLY INCORRECT
The fact that a US corporation is paying you, makes it US income, unless you fill out a W8 to prove you are not a US corporation or citizen.

You fill out the W8, the IRS won't tax you. However, they will report that money to the country you are in, if they have a tax treaty.

06-02-2012, 03:22 AM
Sunny Day Confirmed User Industry Role: Join Date: Dec 2010 Posts: 1,406	W8 IS required for ALL foreign affiliates Due to changes in the US tax law, all businesses are required to issue 1099's to every business or individual the pay more than $600 in a year. Whether or not a W9 or W8 is on file. W8 Instructions "Purpose of form. Foreign persons are subject to U.S.tax at a 30% rate on income they receive from U.S. sources that consists of: Interest (including certain original issue discount (OID). Dividends; Rents; Premiums; Annuities; Compensation for, or in expectation of, services performed; connected with the conduct of a trade or business in the Substitute payments in a securities lending transaction; Other fixed or determinable annual or periodical gains, profits, or income." The key sentence is "Compensation for, or in expectation of, services performed;" You as an affiliate are expecting compensation for a service performed. The US business is paying you money. To prove they paid out the money they must receive a W9 from any US based company or individual or a W8 from a foreign based company or individual. If they don't have this document on file, they are required to withhold 30% of the money due you. Companies don't want to fuck with the hassles of withholding. So they put in a policy, no W9 or W8, no payment. You don't want to get paid, then don't fill out the form. The statement "If you are not a US citizen/company etc and do not own any property in the US and have no employees in the US, you must not file a w8ben form. If you do, then you're making a false statement." IS TOTALLY INCORRECT The fact that a US corporation is paying you, makes it US income, unless you fill out a W8 to prove you are not a US corporation or citizen. You fill out the W8, the IRS won't tax you. However, they will report that money to the country you are in, if they have a tax treaty.