About tax information

tips-and-tricks

#1

Hi,

I opened the tax information section in my settings to fill it in, and i’m a bit confused about the Tax ID number field.
Giving that i’m not a U.S person (i’m from Tunisia) could i choose “Foreign Tax ID Number” option and provide my social security number ?

Is this a correct option ?
And will this exempt me from the 30% withholding tax ?

Thank you.


#2

Yes, you should be using the Foreign Tax ID Number option. Not sure if the social security number is the right one to use, but if that’s the number your local tax office use to identify you as an individual taxpayer, then that should do the job.

One thing to note, the tax ID is only of any use if your country has a tax treaty with the US. If it does, then you should get a discount on the withholding rate. If it doesn’t, then you’ll still get 30% withheld, but because you’ve filled in the W8, that will only be on US sales.

My handy form that had a list of all the tax treaties has changed, so I’m not sure if Tunisia have a tax treaty or not.


#3

Tunisia does have tax treaty with the US, but you won’t be completely exempted from the 30%, it’ll just become 15% instead of 30%. Not bad if you ask me.


#4

Osama are you from Tunisia ?
If so, can you please tell me if the social security number (cnss) is the correct information ?


#5

No I’m not, sorry!
Like Space has said, if the SSN is what your local tax office use to identify tax payers in Tunisia, then most likely that’s what you should use. If you don’t know, you should ask a tax expert or your accountant about that.


#6

Thank you both for your answers.