I am from India (15% tax because of Treaty). I provide wordpress related services on Envato Studio. Will I be liable for tax? Also, if yes than it would be applied to earnings of December as well (paid on January 7) or from payments made in February and onwards. ? @natman@SpaceStockFootage
US RWHT won’t be applied on service income including Item Support extension purchases and freelance/service work you provide via Envato Studio. The portion of item support which is embedded in the Item Price will have US RWHT applied.
You can also fill & submit W8-BEN form right after the JAN-1 , and if your contry has a treaty, Envato will still implement the USA TAX reducement. But you MUST also send the W8-BEN form BEFORE Jan-1 to just let Envato know that if you’re a US Person OR not.
So…
1- Let’s assume that before JAN-1 you still don’T have your ITIN number.
2-Just fill and send the W8-BEN form before Jan-1 without an ITIN. (But of course, USA tax will be applied 30%)
3-Then , right after you get your ITIN NUMBER (even if after Jan-1) , fill an another W8-BEN form from your profile and send it ; Enavto will implement the treaty and you will still benefit from the tax reducement.
By the way, just letting you know ; I was also asked the same question to EnvatoSupport, and the one I have posted above was from their official response. So you can be sure about it.
Not 100% sure about the Envato Studio side of things, but the withholding will apply to any sales from the 1st of January, so they won’t have any affect on what you’ve earned in December. The new withdrawal rules (not being able to withdraw to certain countries, split payment etc) will apply to your January withdrawals though.
Just wanted to make sure I understood correctly considering December earnings are being received on 15th of January.
At the end of December when the withdrawal request are made the “split payment” will work, even thou the money is actually sent on January 15th. The “split payments” will be disabled starting from January withdrawals ( to be received on February 15th ).
Hello can samebody help me with with PART II in this form ?
I’m not sure what to write there. I’m individual person from Poland.
Question nr2: If I saved my tax information at user settings page do I have to also send this w8 to envato email?
As I understand they will freeze my account If I will not delivery this scanned document to envato.
Thanks.
10
Special rates and conditions (if applicable—see instructions): The beneficial owner is claiming the provisions of Article
of the treaty identified on line 9 above to claim a …% rate of withholding on (specify type of income):…
.
Explain the reasons the beneficial owner meets the terms of the treaty article:…
Hey guys, just a silly question, or two . I just can’t comprehend the sentence next to last check box in the “Claim of Tax Treaty Benefits” part. This is what it says “The beneficial owner is claiming treaty benefits of dividends received from a foreign corporation or interest from a U.S trade or business of a foreign corporation and meets qualified resident status (see instructions).” and I’m not sure if I must/should check this too. I’m filling the form for a Corporation registered in Armenia where I reside. I can’t understand what “foreign corporation” in this context stands for. Foreign to whom, me or U.S?
The second check box doesn’t really make sense either, but I think I understand (maybe) and need to check the box. This is what it says: “The beneficial owner derives the item (or items) of income for which the treaty benefits are claimed, and if applicable, meets the requirements of the treaty provision dealing with limitation on benefits (see instructions).”
Also, a thing about the “Reference Number(s)” field. Do you have any idea what should go in there? I got the “Foreign Tax ID Number” but have no idea what this field is for and if I should leave it blank or fill out with something.
Thanks for your help.
Cheers
Edit: Now I’m not even sure if I need to check the second box as well
Hi @natman@collis are there any news regarding the questions about updating the author fee for exclusive authors? For the ones that are earning the 50-something percent for each item would be a huge blow having that minus the 30% for US sales. For the ones who are not in a country with a tax treaty, earning only 20% of US sales for Exclusive items is really too low, keep in mind that there are other marketplaces who are offering 70% without exclusivity, we think this will really help people keep their items in this marketplace. Thanks!
@natman Hi, Just a quick question, is it enough to just fill out the Tax information under our account dashboard? and not fill out the W-8 form? and if we need to do both, where we can submit the W-8 form? any reply would be much appreciated!!
If Envato is cutting pricess they can at least make our life easier when filling this annoying form
I didn’t checked the last 2 checkboxes. I read 100 times and still don’t understand what I should do there
So next year is going to happen the following things
I will go into game industry and move all of my items to a different market or… I won’t be waiting 10days for my item to be approved
I earn 50%… so is not enough that I earn 50%, now I have to pay tax in US ? Why not paying tax and in Australia ? and don’t forgot about China and the other countries. If I get 1% it would be perfect!
. I just can’t comprehend the sentence next to last check box in the “Claim of Tax Treaty Benefits” part. This is what it says “The beneficial owner is claiming treaty benefits of dividends received from a foreign corporation or interest from a U.S trade or business of a foreign corporation and meets qualified resident status (see instructions).” and I’m not sure if I must/should check this too. I’m filling the form for a Corporation registered in Armenia where I reside. I can’t understand what “foreign corporation” in this context stands for. Foreign to whom, me or U.S?
Just get one on BIR, it’s not too hard to get your own TIN.