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Need to be enlightened on tax

Discussion in 'Business & Tax Advice' started by zerofoxtrot, Sep 1, 2012.

  1. zerofoxtrot

    zerofoxtrot Senior Member

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    Sorry for asking so much questions, I'll try to contribute something later. Well I'm running on MGCash and I'm about to receive my next payment but I need to be enlightened on my tax situation. I think the company is established in the USA, and my payment gets transferred on my Payoneer Mastercard, which is, a USA company too. But I live in the Netherlands, and I'll probably use that card in the Netherlands too. Would I still be required to pay taxes in the USA and the Netherlands? Or only one of those? MGCash doesn't have a form where you can submit an IRS W8-BEN so I don't know... Any tax gurus here? Thanks!
     
  2. seopencil

    seopencil Supreme Member

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    i think not

    if they didn't took ur tax id no then no need to pay taxes if you are using Payoneer master card

    but still i think you need to consult your local tax adviser
     
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  3. zerofoxtrot

    zerofoxtrot Senior Member

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    I see, but Payoneer requires their users to deal with tax business themselves, but I have no idea how to confront that. I'll try a local tax adviser Monday if my question has not been resolved yet. Thanks for the quick answer though!

     
  4. synfig

    synfig Regular Member

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    Keep log of the payoneer transactions that made to your card or bank. Use them while filing the tax. W8-BEN Is tricky stuff and these days most of the companies expect you to sign it with or without threshold hitting. Download PDF file of that form, fill it out and then scan it and keep it on your computer. Just fax it online or send via email whenever they want you to have it. That said, like any other country, you will have to pay taxes as per your countries policies and not to the US. You have no business registered in US. You are affiliated and renting hosting etc, and not have owned business.
     
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  5. zerofoxtrot

    zerofoxtrot Senior Member

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    So to clarify I've to fill in a IRS W8-BEN and send it to the both MGCash and Payoneer? That will exclude from me from the tax scheme in the USA? Sorry I'm not really experienced with Internet Marketing tax.
     
  6. synfig

    synfig Regular Member

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    Only if they asked you to send. Most of the time the income threshold of 900 per month or year is for the W8-BEN. You can consult with their support before sending them. I am also NON-US affiliate and I only send that form when affiliate manager or account manager asks me or they publicly send message in dashboard or via announcement about it. If you have yet to reach the threshold or if they have not asked to, don't send them that form. Payoneer will ask for that form when you hit the threshold as per their policies. David from payoneer will let you know about their policies, I have no idea about mgcash.

    You are not taxable in US unless you have registered business. Once you reach some high threshold for income from US, they cut the tax at the source, nothing for you to do on your side. You are under W8-BEN as long as you have no registered business in US.
     
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  7. zerofoxtrot

    zerofoxtrot Senior Member

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    Okay thanks! Won't reach $900 this month in time though. Also on a side note, I'm in a joint venture with someone from the UK. And I will pay him via PayPal. I'm not sure how much I will pay him because we still have to launch the campaign. But will the payment from my Payoneer card to his UK PayPal account be tax deducted?
     
  8. synfig

    synfig Regular Member

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    I am not a tax person so I can't answer this. However his paypal will have deduction for incoming fee and also there will be bank transfer fee with VAT in EU or UK. On your end, nothing changes in terms of tax. Tax is for earned money, not spent money.
     
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  9. bananaman5000

    bananaman5000 Regular Member

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    i have a marketplace business where some sellers are from around the world. i don't have to file any US tax stuff on them, just on US citizens. you will hear from them if there is anything for you to pay. you are however, subject to your own government's taxes.

    taxes = the affiliate program the government forces you to join