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  1. #1
    SitePoint Zealot
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    Angry Fastclick is asking me to pay 30% tax for the revenue generated with them

    Fastclick is asking me to pay 30% tax for the revenue generated with them. So now i have to pay 35% tax in my country and 30% in U.S and i get an income of 35% ?

    Anybody else got such an email?

  2. #2
    SitePoint Wizard CLKeenan's Avatar
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    could you copy and paste the email in here? Im not following what you are saying

  3. #3
    King of Paralysis by Analysis bronze trophy
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    I assume he means that they want to withhold 30% of his revenue for US taxes.

    I'm sure if you explain that you are not a US entity that they will not do this.

  4. #4
    AdCaliber Magic2K2's Avatar
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    I don't believe Fastclick can withhold because you are not an employee of their company, however I'm not too familiar with international law.

  5. #5
    SitePoint Wizard Lil_Red's Avatar
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    Quote Originally Posted by Magic2K2
    I don't believe Fastclick can withhold because you are not an employee of their company, however I'm not too familiar with international law.
    Actually, since a lot of publishers have not been paying taxes on the money they get, ad networks can withhold taxes from the payments unless you fill out a form and submit it to the company. Google started doing this a few months back.

  6. #6
    AdCaliber Magic2K2's Avatar
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    Ah, forgot about that. Guilty until proven innocent, the American way.

  7. #7
    fad (n): a craze; interest... Fahd's Avatar
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    Have you sent them your W8?

  8. #8
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    Compliance with Tax Return Withholdings for U.S. Source Income of Non-Resident Aliens

    I don't know a thing about this, but it appears that all non-US publishers are "non-resident contractors" and subject to this.
    Please do not PM me about your business or sale.

  9. #9
    fad (n): a craze; interest... Fahd's Avatar
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    darnell,

    Your link is about Non Resident Aliens. The poster above would not be a NRA if he is operating from his country. In laymans terms one is a NRA if he/she is temporarily resident in the US but is not a permanent resident.

    Basically, if you are an international resident publisher all you have to do is send FC or any ad network for that matter your W8 form duly completed. You do not have to do any IRS tax filings as mentioned in the above link. (Unless you happen to be an NRA.)

  10. #10
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    I'm just showing the rule they must be using. Tell it to Fastclick.
    Please do not PM me about your business or sale.

  11. #11
    fad (n): a craze; interest... Fahd's Avatar
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    Hey I was just trying to help out, thats all. Best to consult a tax advisor obviously!

  12. #12
    SitePoint Wizard CLKeenan's Avatar
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    I found the email posted over on Geek/Village

    Fastclick is in the process of updating our files for U.S. tax registration information on all our publishers. The United States Federal Government requires the registration of tax status on Internal Revenue Service Form W-8 (see attachment) for all foreign individuals or businesses receiving payments derived from U.S. business income. Fastclick is required by law to collect this information and, if necessary, withhold taxes from payments. In order to determine if tax withholding is necessary, please complete the enclosed documents.
    Based on the address Fastclick has on file for your business location, we have determined that your withholding rate is 30%. Based on that withholding rate, we estimate that your withholdings through June 2005 may be $XXX.XX. Please refer to the attached Internal Revenue Service Publication 515 for the source of this rate. In particular, refer to Chart C on page 16 and Table 1, column 10 on pages 36 and 37. If you can provide alternative information for a different rate, or if the income is connected to a U.S. business, please specify this on the appropriate form.
    The documents that are required to be completed are attached to this email along with web links to instructions and additional information on the Internal Revenue Service website. As a general rule:
    a) If the payments you receive from Fastclick are associated with a business in the U.S., then complete Form W-8ECI.
    b) If the payments you receive from Fastclick are not associated with a business in the U.S. then complete Form W-8BEN.
    This is only a recommendation. It is your responsibility to determine the correct form to complete. Please read the instructions carefully. We recommend that you review these documents with your tax professional.
    These documents must be returned by July 20, 2005. Failure to complete these documents will result in non-distribution of payments until the information is received. Fastclick will temporarily hold the payment of publisher earnings until this information is received.
    If you are claiming a reduced withholding rate due to U.S. treaty or U.S. connected income, you must have a U.S. tax identification number (ITIN, SSN or EIN). If you do not have a tax identification number, please complete the attached W-7 form and send it to the Internal Revenue Service.
    Please fax the completed Form W-8 back to Fastclick by July 20, 2005. The fax number is: (805) 456-4384.

  13. #13
    fad (n): a craze; interest... Fahd's Avatar
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    Seems like all they need is a W8 from non-us publishers? Does this mean they only now started to require non-us publishers to submit W8 forms?

  14. #14
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    Please do not PM me about your business or sale.

  15. #15
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    Also, if you pay international tax, you can have that credited towards your tax payments at end of year - I have been asked by my accountant if I payed any overseas taxes for that reason.

  16. #16
    SitePoint Zealot onlyreal's Avatar
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    it is funny

    what is the relation of fastclick with the tax i am paying in my country?

    why it bothers them?

  17. #17
    Website Publisher incka's Avatar
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    The only company I've had to fill one of those in for is Freeze.com so far, a few others told me in sign up I'd need to but never sent one to me. They're pretty simple to fill in, then you just fax them over to the ad nets.
    Sean Spurr @ Incka Limited
    Fun Games - put games on your site GamesForYourWebsite.com!
    Sites:ABCDEFGHIJ

  18. #18
    fad (n): a craze; interest... Fahd's Avatar
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    I've filled in quite a few W8's over the years. Infact, I still have a few ad networks flashing/blinking "You need to send in a W8 before we can pay you." I'm actually quite surprised that FC is requiring this of non-us publishers this late in the game.

  19. #19
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    Its the same email i told them i already pay taxes in my country. but still asking me to pay taxes in u.s aswell? im an idivudal not an entity do i have to pay?

  20. #20
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    This decision isn't really a Fastclick thing. The IRS requires that US companies paying "foreign persons" either withhold or have a W8 form on hand. You can learn more about this here:

    http://www.irs.gov/pub/irs-pdf/iw8.pdf

    They aren't asking you to pay 30% - they are required to withhold it unless you provide the proper paperwork.

  21. #21
    fad (n): a craze; interest... Fahd's Avatar
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    Just send in your W8 and collect all your money, simple. As JoeMan said, they're only withholding the money as required by law, until you furnish them with your W8. Send in your W8 and you get all your money. You don't have to pay tax in the US from my understanding of what you've said.

  22. #22
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    Can anyone tell me more about this w8 form? Will fastclick accpet this? there are w-8 ben, w-8 eci, w-8 exp, w-8imy which one is for me?

  23. #23
    fad (n): a craze; interest... Fahd's Avatar
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    Read through the links provided in this thread to determine which one is for you. If you're still unable to determine which one is for you, you should probably consult a tax advisor. I use W8BEN.

  24. #24
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    This was a reply posted in a different forum...


    Q. Why is Fastclick requesting that I complete U.S. tax forms?
    A. The United States Federal Government requires the registration of tax status on Internal Revenue Service Form W-8 (see attachment) for all foreign individuals or businesses receiving payments derived from U.S. business income.

    Q. How do I report my tax information to Fastclick?
    A. There are two forms, a W-BEN and a W-8ECI. As a general rule: If the payments you receive from Fastclick are associated with a business in the U.S., then complete Form W-8ECI. If the payments you receive from Fastclick are not associated with a business in the U.S. then complete Form W-8BEN.

    Q. What if I do not complete the requested tax forms?
    A. Existing publishers will need to submit their tax information by July 20th. If the forms are not completed, then payment will be withheld until the proper documentation is on file. Fastclick will not activate new accounts without complete tax information.

    Q. Does completing the tax forms exempt me for withholding?
    A. Not necessarily. You will only have a zero withholding rate if your country has a treaty with the U.S. that specifies a zero withholding rate. Many treaties provide for a reduced withholding rate, but not zero. Additionally, there is an exemption to withholding for non residents with income effectively connected with the conduct of a trade or business in the U.S. (W-8ECI).


    Q. What is the maximum withholding rate?
    A. The maximum possible withholding rate is 30%. However, this amount may be reduced or zero if there is a treaty between your country and the U.S. (W-8BEN). Also, you will be exempt from withholding if your business is effectively connected with a U.S. trade or business.

    Q. Does my country have a tax treaty with the U.S.?
    A. Please go to this link to see if your country is listed. (Page 36, Table 1, column 10) http://www.irs.gov/pub/irs-pdf/p515.pdf

    Q. How do I verify this information?
    A. Links to United States tax information have been provided on this document. Please read the instructions carefully. We recommend that you review these documents with your tax professional.

    Q. Do I need a U.S. tax identification number?
    A. Yes, in some instances. If you are claiming a reduced withholding rate due to U.S. treaty or U.S. connected income, you must have a U.S. tax identification number (W-8BEN). You also need a TIN if you have income effectively connected with a business in the United States (W-8ECI). You do not need a TIN if you do not have a business operating in the U.S. and are not subject to a reduced withholding rate as a result of a treaty (W-8BEN).

    Q. How do I obtain a U.S. ITIN?
    A. Fill out form W-7 and mail to the IRS per the W-7 instructions. http://www.irs.gov/pub/irs-pdf/fw7.pdf

    Q. How long does it take to obtain an ITIN?
    A. Per the IRS instructions for the W7, it takes between 4 to 6 weeks. http://www.irs.gov/pub/irs-pdf/fw7.pdf

    Q. Do I pay both my country of residence tax and the U.S. tax?
    A. Probably not. Most countries allow either a credit for taxes paid to another country or a deduction for the tax so income is not double taxed. We recommend that you consult with a tax professional familiar with the tax laws in your area.

    Q. Why do other advertisers not withhold?
    A. Fastclick has determined that the payments we make to our foreign publishers earned in the U.S. and therefore are subject to U.S. withholding unless an exemption applies. Please refer to the U.S. tax laws reference with this information and consult with a tax professional to validate this treatment. Circumstances at other companies may involve different financial details requiring a different tax treatment.

    Q. Why was I contacted directly by Fastclick?
    A. Fastclick sent direct communication initially to the publishers that would be most affected by this changed. We will be updating our publisher interface in mid July to allow all of our international publishers to submit their proper tax documentation on-line.

    Additional References:
    W-8ECI Instructions (link): http://www.irs.gov/pub/irs-pdf/iw8eci.pdf
    W-8BEN Instructions (link): http://www.irs.gov/pub/irs-pdf/iw8ben.pdf
    Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Entities (link): http://www.irs.gov/pub/irs-pdf/p515.pdf

    Fastclick Contact:
    w8support@fastclick.com

  25. #25
    SitePoint Guru
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    This is bad! Now I will be taxed both in US and my country!


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