Results 1 to 10 of 10
  1. #1
    Newbie
    Join Date
    July 2nd, 2009
    Posts
    2
    Canadian affiliate's tax requirement
    I am a new affiliate, and am unsure of some foreign tax issues. I am a Canadian citizen living full time in Toronto, so surely I wont have to pay US income tax in addition to Canadian.

    But I think Linkshare is requiring me to fill out IRS form # W-8ECI. I'm not precisely sure what this form is. Heres a link to the form:

    http://www.irs.gov/pub/irs-pdf/fw8eci.pdf

    If anyone knows how to handle this, Id be grateful for the info.

    Thanks!

  2. #2
    Affiliate Manager
    Join Date
    May 14th, 2009
    Location
    Texas
    Posts
    1,241
    Sorry to give you bad news, but you will probably be subject to US income tax. The income that Linkshare pays you will probably be sourced to the US. You should check with your tax accountant.

  3. #3
    ABW Ambassador kse's Avatar
    Join Date
    November 29th, 2005
    Posts
    2,511
    As a Canadian living in Canada you do not need to pay any TAX to the US Gov at all. You will have to pay TAX to the Canadian Government. The Canadian Feds have a group tax collectors that visit affiliate sites verifies if the owner is Canadian or not and if they are they keep an eye on your tax returns.

  4. #4
    ABW Ambassador kse's Avatar
    Join Date
    November 29th, 2005
    Posts
    2,511
    Also I just looked at the form and it is not the one for Canadains, their is a one that you will be require to complete but that not it. It been some time since I did it, I have no idea what the number is.

  5. #5
    ABW Ambassador ToughTurkey's Avatar
    Join Date
    January 18th, 2005
    Posts
    993
    kse is correct, you do not pay US tax - but have never heard of this next bit..
    The Canadian Feds have a group tax collectors that visit affiliate sites verifies if the owner is Canadian or not and if they are they keep an eye on your tax returns.
    Not sure what you mean by this, been doing this 8+ years and never had an issue with Revenue Canada and I am pretty sure they have not been keeping an eye on my sites. However, if you are a cdn affiliate promoting a cdn merchant, then there are complications with the GST so get some advice.

  6. #6
    ABW Ambassador kse's Avatar
    Join Date
    November 29th, 2005
    Posts
    2,511
    Quote Originally Posted by ToughTurkey
    kse is correct, you do not pay US tax - but have never heard of this next bit.. Not sure what you mean by this, been doing this 8+ years and never had an issue with Revenue Canada and I am pretty sure they have not been keeping an eye on my sites. However, if you are a cdn affiliate promoting a cdn merchant, then there are complications with the GST so get some advice.
    Yes they are keeping an eye on affiliate sites, ebay and other online stores as well and if the owner of the site do not report earnings/expenses from their online site they will get to them sooner or later and they will be audited back several years.

    ToughTurkey not that it any of my business but I guess you do report all of your earning on your tax returns.

    The GST thing I do not have much information but I do know a GST expert with the Feds so I going to explain to him/her what I do and see if it is required. Also I sure their in a minimum amount of "Canadian Earnings" that you have to earn before any thing may be required.

    I personally hate dealing with most Canadian companies via affiliate programs since they have no idea what their doing so I do not deal with many canadian companies anyway. And if I did have to collect GST I would drop them all. No big loss. Before anyone ask I am Canadian...........

  7. #7
    ABW Ambassador ToughTurkey's Avatar
    Join Date
    January 18th, 2005
    Posts
    993
    Quote Originally Posted by kse
    Yes they are keeping an eye on affiliate sites, ebay and other online stores as well and if the owner of the site do not report earnings/expenses from their online site they will get to them sooner or later and they will be audited back several years.
    I'm sorry but Revenue Canada, or "the feds" as you call them do NOT ask for individual site names of your affiliate websites. I have no idea what you mean that they "keep an eye on them", that is a logistically impossible task. As an affiliate, your tax classification is simply 'self employed', with 5 options on the T1 General Form including 'commissions income' and 'business income' to fill in.
    Quote Originally Posted by kse
    ToughTurkey not that it any of my business but I guess you do report all of your earning on your tax returns.
    ?? I don't even want to know what you mean by that.

  8. #8
    ABW Ambassador kse's Avatar
    Join Date
    November 29th, 2005
    Posts
    2,511
    I fully agree that they do not ask for site names etc. I just report my income as "Commission Income"

    I personnaly do not think it impossible to keep any eye on affiliate sites but that just my option but I do know that they are looking at affiliate sites, online stores etc.. I was just pointing this out to Mike E for his information. He can do with it as he wants.

    I agree that statment was out of line with regrards to me refering to your income reporting.

  9. #9
    Newbie
    Join Date
    July 2nd, 2009
    Posts
    2
    Re: Canadian Taxes
    Greetings Slowcooker,

    I have checked with my accountant, and it seems several countries have a tax treaty with the US to the effect that their citizens are deemed by the IRS to be foreign entities doing business with the US, and are taxed by their own countries, rather than in the US. Canada is one.

    This avoids the absurdity of double taxation.

    One needs to submit form # W-8BEN to the IRS, and claim exemption from US taxation as a foreign business entity doing business in the US. One may also need a Tax Identification Number (or not, this issue we have not yet resolved). One can download the form from the IRS site, along with a PDF instruction sheet.

    Best to talk with an accountant tho, exactly as you suggested. 3 or 4 paragraphs into that instruction sheet and my eyes glazed over like donuts.

    Thanks for your response, slowcooker!

    cheers,

    Mike E

  10. #10
    Newbie
    Join Date
    January 12th, 2011
    Location
    Toronto, ON, Canada
    Posts
    1
    Canadian citizen- US tax question
    Hello:

    I saw KSE reply to a posting with regards to canadians doing affilaite marketing in the US and paying Canadian taxes.

    My US affiliate wants me to fill out the w8ben form. I am a Canadian living in Toronto, I dont want to pay US taxes!

    At the bottom right hand of the form- it says "capacity in which acting"- what the heck is that all about? Is it me? Should I sign in or what?

    Thanks and I need your guidance. I was looking for way to message you privately about this tax stuff, but I guess this forum does not provide this option?

    Thanks and I will wait for your reply.

  11. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. Canadian Affiliate Tax Help
    By Anthony11690 in forum Canadian Affiliates
    Replies: 7
    Last Post: March 26th, 2012, 08:49 PM
  2. Illinois Tax Revenue Declines since passage of Affiliate Nexus Tax
    By JCrooks - AffiliateWindow in forum Illinois Affiliate Tax
    Replies: 1
    Last Post: March 20th, 2012, 04:03 PM
  3. Replies: 12
    Last Post: August 29th, 2011, 02:57 PM
  4. Canadian Affiliates Tax ID during signup?
    By cjk in forum Newbie Affiliate FAQs & Helpful Articles
    Replies: 8
    Last Post: October 26th, 2003, 03:31 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •