W8 form

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1

Hi everyone! I have a question about W8 form. As i understood tax treaty with my country (Azerbaijan) is 0%. I want to fill my W8 form, but my income for now is too small. Give me a piece of advice, please, should i fill w8 form, even if my income for month is not more than 50 $, or should i wait?

2

There is no minimum income threshold for US withholding tax. Without W8 you pay 28% US Backup Withholding Tax on all your sales, no matter how much you sell. From $50 you give unnecessary $14 to the US IRS.

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3

What @Sealord said.

It’s always better to have a form submitted than no form at all, even if you’re not lucky enough to have a 0% withholding tax rate.

  • A form submitted means you only pay your tax rate to customers from the US (in your case, 0%).

  • No form means you pay 28% tax on sales to all customers, regardless of where they are from.

4

Thank you for an answer!

5

Thank you for clear answer)