Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
To whom do I pay taxes when I fill W8-BEN tax form?
There are some websites you can upload stuff for sale to. Most of these are based in US and they require you to fill out this tax form before you can get any money from them. However neither websites, nor the form say for what aim exactly it is used. I am citizen and resident of totally different country, so I am not familiar with American tax system and unsure what exactly does this mean - do website owners take whatever tax applies from my earnings and pay to US or they don't take any taxes from me and I should pay taxes to my country? Also would IRS notify my country about this form so they know they should tax me? Plus on line 10 in form it talks about special rates and conditions that might apply based on treaty between US and my country - how do I know?
2 Answers
- Bostonian In MOLv 78 years agoFavorite Answer
If you are not a US person as defined in US law (generally a US citizen or lawful permanent resident living anywhere in the world or a resident of the US, lawful or unlawful) and are not performing services in the US, your income is not taxable in the US.
For you to incur a US tax liability, your income would have to be effectively connected to the US. That would include dividend and interest income generated from US sources, income from property in the US, and income from activities subject to intellectual property laws (patents, copyrights, etc.) where you retain rights to the property rights.
If you are not subject to US taxation, you do NOT supply a Form W8-BEN to the person or firm that is paying you. You merely certify that you are not a US person, are not performing services in the US, and are not subject to US taxation. Unfortunately a number of US businesses are not familiar with what Form W8-BEN is properly used for and will erroneously insist that persons not subject to US taxation prepare one. Your only viable option in this case is to do business elsewhere.
