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  1. #1
    Newbie ceetee's Avatar
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    Taxes for non American
    For promoting to the US market does it make taxation more complicated if the web server is located in the US? Meaning, would I have to pay the US taxman even though I'm based in the UK?

  2. #2
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    You won't have to pay US tax. Tax is based on where you, or your company, reside. I do affiliate marketing from my home in Australia, but mostly from US servers targeting US folk. I pay tax in Australia on my US earnings. Any checks I get from Aussie merchants I need to pay GST on (same as VAT).

    Some affiliate programs in the US require you to fill out a tax form stating that you do not reside in the USA.
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  3. #3
    AM Navigator Geno Prussakov's Avatar
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    I think the main question was related to the servers' location. I've heard someone at ABW mentioning possible complications in tax filing if you reside outsite of the US, but have a web server in the US. I think, ceetee's question is a good one, and it it'd be good to hear an opinion of someone who has first-hand experience with this.

    Geno

  4. #4
    ShareASale President/CEO and ABW Veteran Brian - ShareASale's Avatar
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    THe location of the server typically doesn't matter... unless you actually own the equipment or have employees in the US who work for you.
    Thanks,

    Brian Littleton
    President/CEO - ShareASale.com, Inc.

  5. #5
    AM Navigator Geno Prussakov's Avatar
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    Quote Originally Posted by Brian - ShareASale
    THe location of the server typically doesn't matter... unless you actually own the equipment or have employees in the US who work for you.
    Thanks, Brian.

    Geno

  6. #6
    CPA Network Rep JP Sauve's Avatar
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    If you're the affiliate program you're advertising is located in the USA, and you're International, ask the merchant to send you a W8-BEN form to declare your foreign status. That way, the merchant won't hold back any taxes.
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  7. #7
    Kung Fu Master Eathan's Avatar
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    If this is personal income it also depends on your citizenship. US citizens are required to pay federal income regardless of where they live and earn. If I were to get a job at Tescos, for example, Uncle Sam would want a cut. If you're a UK citizen, this obviously doesn't apply.
    Eathan Mertz

    Black Cat Mining - Gold Prospecting & Rockhounding Equipment

  8. #8
    I like traffic lights
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    Quote Originally Posted by Brian - ShareASale
    THe location of the server typically doesn't matter... unless you actually own the equipment or have employees in the US who work for you.
    Yes. If you only lease a server in the USA, you are not liable for tax in the USA.

    If you have a co-location agreement - where you OWN the equipment, you are liable for tax in the USA.

    Likewise, if you have "representatives" in the USA or people working on providing content for your sites, then you are liable.

    Google's adsense information pages have a good run-down...

    https://google.com/adsense/taxinfo

  9. #9
    I like traffic lights
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    Quote Originally Posted by JP Sauve
    If you're the affiliate program you're advertising is located in the USA, and you're International, ask the merchant to send you a W8-BEN form to declare your foreign status. That way, the merchant won't hold back any taxes.
    But there is NO IRS requirement for a W8-BEN for people outside the USA whose income is NOT US SOURCED.

    Quoting https://google.com/adsense/taxinfo ...

    "If you do not have U.S. Activities, you will be asked to agree to a statement to that effect. No tax forms are required in this instance."

    Merchants insisting on W8-BEN's when they are not required are taking the lazy option and are not doing their non-US affiliates any favours.

    Generally, if a Merchant demands a W8-BEN from me, I take my business elsewhere, and if there are no suitable merchant available, I convert the site to adsense only.

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