Program asking me to fill out W-8BEN Tax Form?

[HeresJohnny]

Hello all,

I own a site that generates income via sales directed from it to the official site (for a sex toy), a simple referral system. It's been going fine so far but today, after one and a half years of being online, I just got a message from one of the reps from the Program asking me to fill out a W-8BEN Form as their accounting office has requested all foreign members to do so. Details of the form: irs.gov/uac/Form-W-8BEN,-Certificate-of-Foreign-Status-of-Beneficial-Owner-for-United-States-Tax-Withholding

It's quite a long read but from what I gather it's for stating wether you are declaring the income or not, but I may be mistaken.

The first thing I did was reply to the rep, who has always been very helpful with me, but he said he doesn't know the exact reason as to why I need to fill it out, only that I need to do it before the next payout.

I live in Spain, declared spanish resident and self-employed. I pay my own insurance as well as self-employment fees and what not. I also declare the income I make online here.
I'm just a little worried about what could happen if I fill out the form. Having read it, it says I could be liable to 30% tax from the U.S. as well. That means I might be paying over 50% tax in both countries for the online income? Or have I misunderstood something?

Does anyone have any experience with this with other affiliate programs?
Thank you very much for your time,
Johnny

[MiamiBoyz]

[ravo]

You misunderstood. The form basically declares that you are NOT subject to US taxes, so the program does not need to withhold taxes.

[BigFurry]

Originally Posted by ravo

You misunderstood. The form basically declares that you are NOT subject to US taxes, so the program does not need to withhold taxes.

It depends on the country though, doesn't it? As I understand, there are countries that have a 0% withholding tax treaty, but not all?

The Amazon Associates USA affiliate program has all non-US affiliates fill out such a form for instance btw.

[brassmonkey]

don't seek help here!
What is Form W-8BEN and What is it Used For? » Lets Talk About: US Tax

it's to pay taxes i think! 30%???? dayum

[HeresJohnny]

Alright thanks for the info guys I appreciate it!

[xXXtesy10]

Originally Posted by MiamiBoyz

[Barry-xlovecam]

Spain

Income that residents of Spain receive as independent contractors or self-employed individuals (independent personal services) in the United States is exempt from U.S. income tax if the residents do not have a fixed base available to them in the United States for performing the services. If they have a fixed base, they are taxed only on the income attributable to the fixed base.

https://www.irs.gov/publications/p90...link1000219372

It's more of a 'get out of jail card' for a US payor of non-resident independent contractor's commissions. An exemption form from 1099 Miscellaneous Income annual reporting requirement.

[brassmonkey]

Originally Posted by Barry-xlovecam

https://www.irs.gov/publications/p90...link1000219372

It's more of a 'get out of jail card' for a US payor of non-resident independent contractor's commissions. An exemption form for 1099 Miscellaneous Income annual reporting requirement.

https://www.irs.gov/pub/irs-pdf/iw8ben.pdf

it's to pay tax b4 it leaves the usa

Purpose of Form
Establishing status for chapter 3 purposes.
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;
Royalties;
Premiums;
Annuities;
Compensation for, or in expectation of, services
performed;
Substitute payments in a securities lending transaction;
or
Other fixed or determinable annual or periodical gains,
profits, or income.

[RummyBoy]

theyll just find a way to throw you in jail.... enjoy yourself there

[Barry-xlovecam]

No shit Sherlock.

Independent contractor income for Affiliates that are not in the USA are not taxed.

Do you understand what a W-8 or W-9 is actually for?

It is to determine the tax status of someone that you pay ''non-employee'' income to.

Ask a fuckin' CPA