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What is a Form W-8BEN?
john14
Posts: 19
Joined: 24 Mar 12
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24 Apr 12 6:53 pm

What is a Form W-8BEN?

I joined an affiliate program that is requiring me to fill in a W-8BEN form stating:

Based on the Internal Revenue Service code, all Foreign Citizens are required to pay a 30% tax rate on all income made in,from or by US sources.


I'm quite new to this. Is that true? Should I submit such a form paying a 30% tax rate?

Any input would be highly appreciated. Thanks a lot.
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Site Admin
maryt
Posts: 3224
Joined: 16 Apr 12
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25 Apr 12 4:23 am

 Hello John,

The W8BEN is a form that US buyers should have in order to make full payment for you. This form serves as "proof" to the IRS, which does not require you to pay any income tax to them. If your buyer does not have this IRS form and they withhold a portion of your payment and remit this to the IRS, then you have to reimburse this payment to the IRS at the end of the year.

For starters, this seemed to be complicated and scary. But all you have to do is to fill out the W8BEN once and if you have other clients in the US, you may submit the same form to them. In case you get audited and your US client do not have the W8BEN on file, the IRS may impose penalty to your client and not to you.

As for as I know with US clients and companies, if you are going to do business with them, you may have to comply with their cross-border laws. If you feel uncomfortable giving them your signature or any kind of information, it is advised that you just don't do business with them.

I hope that helps.
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michellerana
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25 Apr 12 3:41 pm

 If you are applying as an affiliate in Commission Junction then you need to submit a W-8BEN form to receive your commissions. The information/instructions on this page might be helpful: How To Fill Up W-8BEN Form for Affiliate Platforms like CJ
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freeforamericans
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27 Apr 12 11:55 am

 non usa citizens who will be paid by any thing inside USA required to submit it .
it is very easy to be done and may submit it virtually
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john14
Posts: 19
Joined: 24 Mar 12
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11 May 12 8:41 am

 Does signing and submitting this form mean I will have to pay a 30% tax on all income that I earned on a monthly basis?
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cecille.l
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Joined: 25 Feb 11
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11 May 12 9:14 am

 No, you are not required to pay 30% tax when you fill out the W-8BEN form. This form is proof that you hold a "non-American status" and companies in the US that will accept you as affiliate need to have this in their records.

There *are* states in the US that requires affiliates to pay a certain percentage of tax but this does not apply to non-US marketers.
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mybest.forums179
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22 May 12 7:18 am

 IRS tax forms are used for taxpayers and tax-exempt organizations to report financial information to the Internal Revenue Service (IRS) of the United States. They are used to report income, calculate taxes to be paid to the federal government of the United States, and disclose other information as required by the Internal Revenue Code (IRC). There are over 800 various forms and schedules. The best-known of these is Form 1040 used by individuals.
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backhoe48
Posts: 96
Joined: 26 Nov 08
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01 Jun 12 10:48 pm

 I downloaded the form only to find that while most fields can be filled in online, your signature can't.... which means printing it out, scanning it and send it electronically or send it by surface mail.

The form contains the usual fields...name, address, etc of non US citizens to which the US Government has no right.

I'm of the opinion that big brother is using this to collect personal information from people who have nothing to do with the US Governments Internal Revenue Department and are just keeping data bases on whoever ^%&$# they please.
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