Question about Tax..

[chuamishael]

I am NOT a U.S. citizen, I was suppose to recieved $180 from zazzle, but zazzle remove 30% tax from it... so I end up only recieving $126.63 ... I didn't expect this.

Do I get some kind of tax return from this at the end of the year? I'm pretty sure, this kind of small amount shouldn't be tax.  I'm confused. 

I didn't fill up my tax treaty because I'm confuse with this.

[Sara_H]

@chuamishael 

If you didn't complete your W8BEN tax form - Zazzle are entitled to hold back 30% of any earnings.

To stop this from happening in the future - you really need to complete the tax form to receive all of the money that you earn.

There is a facebook group that can help with international creators filling in the form (search for International Zazzlers United) and request to join. I'm sure there will be someone from your country that has successfully had their W8BEN accepted.

The W8BEN is just a form that you fill in your name, address, etc and is not difficult to complete.

I don't think you can claim tax back but am not a tax professional so I have no idea.

[chuamishael]

Yeah actually I already submitted my W8Ben, only that section 9 and 10 part with "Claim Tax Treaty" I leave it blank. 

The reason I leave it blank, because I don't know how to fill those blank.  I submitted an email a while ago, to ask this question. but I'm not sure how long will I get a response from them. I'm so panicking and stress right now, because I didn't realize that I have to fill up that part of of tax treaty. I don't mind resubmitting the form, if they will return my 30% percent...... 😥

[Sara_H]

@chuamishael You won't get that 30% back I'm pretty sure on that. Zazzle won't advise you what to write 

Join the facebook group, find out what tax treaty your country has with the US and resubmit a fully completed W8BEN.

The sooner you do it - the better and you will get all your earnings (minus any tax that your country's tax treaty has with the US)

[chuamishael]

😫I won't get my 30% back? oh no.... do you have any links on facebook? I'm searching youtube right now... 

[Sara_H]

@chuamishael https://www.facebook.com/groups/456252351220004

[chuamishael]

Thanks Sara

[travelvida]

Did you receive the payment for this month

[chuamishael]

Yes, first time, after all the trouble trying to get my W8ben approved last 2 months, then I got 30% tax today. I just received my first payment today.

[waterart]

Are you saying that Zazzle approved your w8ben without you completing the tax treaty part of the form?

[chuamishael]

Yes..., but they also said I could update it anytime.

[Fiorenzo]

I wrote a forum post about how to fill out the W-8BEN form. Depending on the country you live in, you may unnecessarily lose quite a good amount of money if you don't fill out the Part II section, so it's worth the hassle. Note that the tax exemption % varies from country to country depending on the treaty.

If you tell me your country, I can check the appropriate rate, article, and paragraph for you. In the meantime, read my post, so you get an overview of how to fill out the dedicated parts, then wait for my response so we can get it right from the beginning. Please allow me a day or two to respond, pretty busy ATM. Here's the link:

https://community.zazzle.com/t5/share-your-tips-tricks/w-8ben-links-to-irs-documents-and-tips-for-fo... 

Cheers.

[chuamishael]

Hi, I currently live in the Philippines, what's lowest tax I can get there? 

Oh by the way I read a bit on the links you posted... and search on royalties but still confuse. 
Is this the part ?
-----
"(2) However, the tax imposed by that other Contracting State shall not exceed(a) In the case of the United States, 15 percent of the gross amount of the royalties, and (b) In the case of the Philippines, the least of: (i) 25 percent of the gross amount of the royalties, (ii) 15 percent of the gross amount of the royalties, where the royalties are paid by a corporation registered with the Philippine Board of Investments and engaged in preferred areas of activities, and (iii) The lowest rate of Philippine tax that may be imposed on royalties of the same kind paid under similar circumstances to a resident of a third State."
----   
🤔
There is also this part.... I'm not very good at these terminology
-------
(4) The provisions of paragraphs (1) and (2) shall not apply if the recipient of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs in that other State professional services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions of Article 8 (Business Profits) or Article 15 (Independent Personal Services), as the case may be, shall apply.
-----------

[Fiorenzo · Accepted solution]

Checked the Philippines treaty on IRS. In your case, the article/paragraph is 13(2)(a) and the rate is 15%.

Analyzing the text in the treaty, 13(1) tells that in your case the Contracting State is the Philippines (resident) and the OTHER Contracting State is the USA (source [of the income]):

(1) Royalties derived by a resident of one of the Contracting States from sources within the
other Contracting State may be taxed by both Contracting States.

So, the paragraph to take is 2a, and the rate is 15%:

(2) However, the tax imposed by that other Contracting State shall not exceed-
(a) In the case of the United States, 15 percent of the gross amount of the
royalties, and...

Edit the data in the respective fields as mentioned in my post. For the rest, use my wording. This should work. If not (may happen), feel free to respond to this thread again and we'll check it out further. The data is correct in any case. Good luck!

[chuamishael]

Thanks, I'll try this 😊

[chuamishael]

Fiorenzo, I need help again, I keep on recieving this part from the review team. "- Please revise the paragraph reference that pertains to you, next to the Article number in Part II, line 10."

I revise twice and not sure what to write there. those review team are NOT very clear of what should I revise there!  I wrote there Royalties from artistic works...

[personalables]

Hello kabayan! Were you able to fix this? I'm facing the same issue. TIA 😊 

[chuamishael]

Yes, already eligible for 15% tax