Tax Are You Paying It Twice

Tax Are You Paying It Twice



Tax: Are you​ paying it​ TWICE ?
This article would prove beneficial for people or​ websites based countries other than UNITED STATES OF AMERICA and doing businesses with websites or​ companies in​ the​ UNITED STATES OF AMERICA .​
This is​ specific to​ businesses from US to​ other countries .​
For businesses originating from other countries see International Tax Laws for that country.
For further and more accurate information always consult the​ site www.irs.gov
Whichever country you​ are coming from,​ the​ term business is​ always related to​ tax .​
It is​ your financial obligation that MUST be taken into account and paid.
Online Business is​ no different .​
The way online business differs form other businesses is​ that it​ is​ the​ easiest way to​ cross international borders and bring into effect the​ international tax laws.
You may receive the​ payments by Checks,​ Bank Transfers,​ PayPal or​ whatever .​
All the​ income must be estimated and tax should be calculated and paid .​
If you​ are unsure consult your Tax Agent .​
He would be able to​ guide you​ better .​

Online business is​ mostly generated from UNITED STATES OF AMERICA as​ all the​ good sites that provide good returns are based in​ UNITED STATES OF AMERICA .​
has opened its gates for people from all around the​ world (with exception of​ some countries) to​ conduct business from these online firms .​
According to​ the​ U.S .​
government’s rule all income or​ business generated from U.S .​
Businesses or​ income related to​ U.S .​
Businesses or​ Companies should pay tax in​ the​ US .​
the​ companies in​ the​ US are advised to​ hold tax from you​ or​ not to​ make nay
Does that mean you​ pay the​ Income Tax TWICE? Once to​ the​ US Government and once again when you​ do your local taxes .​
The answer in​ NO .​
The good news is​ that US has got international rules for dealing with Tax issues arising in​ these sorts of​ situations .​
To get around it​ you​ need to​ fill in​ the​ APPLICABLE W-8 series of​ forms like W-8BEN,​ W-8ECI,​ W-8EXP,​ and W-8IMY and give it​ the​ company whom you​ are doing business.
A further note Google AdSense is​ a​ bit different .​
It takes care to​ see your country of​ origin and advises you​ accordingly .​
You DO need to​ pay tax in​ UNITED STATES OF AMERICA .​
if​ you​ have people,​ services and equipment based in​ the​ UNITED STATES OF AMERICA .​
Having only a​ hosting service is​ not considered as​ owing equipment in​ UNITED STATES OF AMERICA.
More information can be obtained from the​ following publications:
These are some of​ the​ links to​ that give further information on​ these issues .​
If you​ do not understand the​ technical tax jargon,​ consult your tax agent or​ tax consultant .​
0506 Inst W-8 (PDF) Instructions for the​ Requester of​ Forms W-8BEN,​ W-8ECI,​ W-8EXP,​ and W-8IMY (35.9K) PDF
0206 Form W-8BEN (PDF) Certificate of​ Foreign Status of​ Beneficial Owner for United States Tax Withholding (66.8K) PDF
0206 Inst W-8BEN (PDF) Instructions (43.8K) PDF
0206 Form W-8ECI (PDF) Certificate of​ Foreign Person's Claim for Exemption From Withholding on​ Income Effectively Connected With the​ Conduct of​ a​ Trade or​ Business in​ the​ United States (56.6K) PDF
0206 Inst W-8ECI (PDF) Instructions (32K) PDF
0206 Form W-8EXP (PDF) Certificate of​ Foreign Government or​ Other Foreign Organization forUnited States Tax Withholding (59.6K) PDF
0206 Inst W-8EXP (PDF) Instructions (37.5K) PDF
0206 Form W-8IMY (PDF) Certificate of​ Foreign Intermediary,​ Foreign Partnership,​ or​ Certain U.S .​
Branches for United States Tax Withholding (65.6K) PDF
0206 Inst W-8IMY (PDF) Instructions (44.4K) PDF




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