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  1. #1
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    September 18th, 2008
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    Non US activities and Tax Info Issue.
    Hey guys,

    I just have some trouble with the tax info and argue with the CJ staff.

    I am not a US citizen or living in US. I rented a hosting in godaddy, using some P.O box as my contacts and a US bank account to receive money.(I am the account holder)

    Now CJ called me to submit a W-8BEN form .

    I insisted that what I need to submit is certificate of non- us activities . My reasons are :

    1 According to wikipedia: en.wikipedia.org/wiki/IRS_tax_forms#W_series , "W-8BEN is for persons subject to tax withholding. For non-U.S. affiliates, affiliate income is generally "foreign-sourced income" and therefore not subject to tax withholding."

    2 Also ,Google has some some help articles for non-us activities:
    google.com/adsense/static/en_US/TaxInfo.html?gsessionid=ReePsG6z4_1gfjuUcy3x2w#nonus

    Generally, utilizing an unrelated third-party U.S. web hosting service to host your web pages, renting web servers that are located in the U.S. from an unrelated third party, or having your payment sent to a U.S. Post Office Box or mail forwarding address, do not of themselves constitute U.S. Activities.

    3 I have used the same address and bank account in Google Adsence in last 2 years, what they requested was just the non US activities certification. What was more, CJ request the same when I submitted the new contacts in 2009.

    So
    Any one knows whether using US bank account to receive commission constitute US activities?

  2. #2
    Outsourced Program Manager Chris -  AMWSO's Avatar
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    I filled on a W-8BEN last month, for the Taxpayer ID and Foreign Tax ID, I put NA and listed my foreign business address in Part 1. Part II I left blank and Part III I checked the box.

    I am not really sure what your concern is unless you are resident in the US for a fair amount of time each year.

    That said I am not a tax lawyer, accountant or tax consultant so I would recommend getting some professional feedback on this topic

    Cheers

    Chris
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  3. #3
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    Thx Chris.

    My concern is I have to pay 30% tax . Have you been charged any tax ?

    The situation is : If CJ was right , then google is wrong.

  4. #4
    ABW Ambassador ladidah's Avatar
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    Quote Originally Posted by Reviewfbi View Post
    So
    Any one knows whether using US bank account to receive commission constitute US activities?
    Having a US bank account to receive commission does constitute US activities, but that does not constitute that those funds are taxable.

    You may perhaps take a photocopy of your passport and send it to them to verify that you are a foreign national and not subject to taxes.

    Also, I am not a lawyer but I know that lots of foreign nationals have bank accts in the US of which the funds are not taxable.

  5. #5
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    I don't know what the tax laws or regulations say (IANAL), but it sure seems like you've invited this problem by maintaining both a US mailing address and a US bank account. Have you also created relationships with any advertisers who restrict their programs to "US residents only?"

    It's also possible that CJ (or its parent company, ValueClick) might have received different tax advice this year, or might even be under special IRS scrutiny (the IRS has been negotiating special agreements with some internet companies, like eBay, to require different types of reporting than in the past, independent of tax laws and regulations.)

    While you might get some useful advice and feedback here, do not rely on free advice you get from strangers; consult with a tax professional. If you make a mistake, it could threaten all your advertising relationships, and/or trigger substantial withholding and paperwork hassles.
    Last edited by markwelch; February 15th, 2011 at 01:50 PM.

  6. #6
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    September 18th, 2008
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    Thx ladidah and mark welch

    "Having a US bank account to receive commission does constitute US activities" Why it constitute US activities? I did not use it in my services, if this constitute US activities, so does the P.O box to receive the payment. However, it listed as Non us activities in Google`s help article.
    I opened this bank account via a agent, I still don`t know how they did that.
    Even I would like to submit my passport, but the US bank issue is still there.(They may ask how you open the bank account with out SSN/TIN )


    For markwelch`s question, I would like to say there is no help. CJ`s system would still block you. To show quality of your sites/content is the best way to setup partnership with the merchants, not the location.


    does your guys have any tax professional site to recommend ? I just called IRS support, they just transfer me again , again again.

  7. #7
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    Hi all,

    I just got an official and pro reply from CJ`s accounting manager.
    " No you would not be charged any tax. No tax will be withheld. The W-8BEN is for our informational purposes to confirm that you are located outside of the United States and that you are not subject to US taxes. "

    I just submitted the W-8BEN form and the non-US activities certification was gone.


    I still quite not understand why could I just used the non-US activities certification.

  8. #8
    Full Member Lanny's Avatar
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    dicey tax situation
    I do not know how or when the Agent was able to open a bank account for you, in the USA, but I can tell you, *many* Overseas Americans (U.S. Citizens) are having severe problems, opening and/or maintaining bank accounts in the USA.

    For U.S. Citizens and Permanent Residents, if one received more than USD$600 from CJ or any other networks, they must mail an I.R.S. Form 1099-MISC to you and that money is reported to the I.R.S. If that is the case, then you need to file a U.S. Income Tax return, for tax year 2010, with the I.R.S. If you do not file a Tax Return, the I.R.S. will eventually contact you...........

    I am not sure, if CJ or other networks will be mailing Form 1099-MISC to you, since they know you are not a U.S. Citizen or Resident.

    You should apply for an ITIN number from the I.R.S., since you are neither a U.S. Citizen or Permanent Resident of the USA. Use the ITIN number, on any forms you send to the I.R.S. and provide that number to your bank in the USA and to CJ and other networks you work with.

    Does your U.S. bank know that you are not in the USA?

    Your U.S. Bank account and your U.S. Mailing Address are *probably* going to cause problems for you, with regard to U.S. taxes, now and in the future.

    Because of your U.S. Mailing Address, the I.R.S. and other government agencies will assume that you are in the USA.

    Also, if your U.S. Mailing Address is in one of the 44 (?) states that have personal income taxes, you may hear from the state income tax officials too.

    I believe there is a possibility that you are breaking some U.S. banking laws that are enforced by the U.S. Goverment and that if they become aware of that, your U.S. bank account will be closed and/or confiscated, for violations of U.S. laws and that you may be subject to U.S. Civil and/or Criminal penalties.

    NOTE: I am *not* a Tax Professional or Attorney. I believe the above information is true and correct, and I believe you should *not* be looking for U.S. Tax Advice on Wikipedia, or on other web sites. I believe you should hire a competent C.P.A., Tax Attorney, or someone who is an I.R.S. Enrolled Agent, in the state where your U.S. Mailing Address is located, to work on this for you, *before* the I.R.S. contacts you.

    HTH and GL

  9. #9
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    I live in the UK and filed a W-8BEN 6 years ago with CJ and have never been asked for or paid any taxes to US, only my own country.

    That said, seek professional advice.

  10. #10
    Outsourced Program Manager Chris -  AMWSO's Avatar
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    Quote Originally Posted by Reviewfbi View Post
    Thx Chris.

    My concern is I have to pay 30% tax . Have you been charged any tax ?

    The situation is : If CJ was right , then google is wrong.
    No never, my bank is in Delaware and my address info all offshore.
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  11. #11
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    Thanks Lanny.

    When I set up the account, they did know I am non US citizen or resident alien. According to my personal knowledge, some bank, such as HSBC could open foreign bank for its premium clients.

    Or you can just register a LLC in Delaware , then visit the bank on your behalf of the business owner. (Maybe Chris used this way to open his account)

    My bank was a very small bank, I always kept my eyes on its stock price in case that it went bankruptcy. They did not give me any info on how they open the account. I think they did get some TIN for me. ( At least, I have a friend in Vancouver always help other to transfer many out of US via his bank accounts in Seattle, he told me that he had very good relationship with the bank account manager and always sent some gifts to them.)

    For the mailing issue, I remember I filled some thing called FORM 1583, which required you to select some options if you used this mail for business.

    If I got tax , I would feel unfair as most of my earring were from non US merchants.

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