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Why do affiliate companies take W8 form for international affilates

Discussion in 'Business & Tax Advice' started by eternity, Apr 23, 2009.

  1. eternity

    eternity BANNED BANNED

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    Hey people,

    Needed some serious help ...

    I have been now with many affiliate networks like Hydra , Azoogle , Clickbooth etc

    All of them are US based companies ... they take W8 either via mail or fax or physically mail them

    I am an international affiliate why do they take W8 for international affiliates .. i mean what do they really do with that yes i understand for US affiliates taxation matter so they take W9 form from them but what about the international ones ...

    Do they really contact our country for tax related issues or are they just for their file

    Do they contact our countries taxation dept ... if so why ... as I am not an US citizen , neither do i have any business ( except being affiliate ) with US in any form

    I really need to know this someone having some experience with this or had any problems with this ever

    Can anyone give some explanation what they really do ??
     
    Last edited: Apr 23, 2009
  2. xanax

    xanax Registered Member

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    they are required by the IRS to do so
     
  3. whatsup

    whatsup Registered Member

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    IRS wants them to do so. I don't think they contact your countries tax dept. But this way they are on the safe side. That's what matters to them.
     
  4. Torque09

    Torque09 Junior Member

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    Hi Eternity,

    I don't think so. The CPA's are not going to contact your home country's tax department. This is done only for their own purposes. They have to report IRS that they not own you money. Otherwise they have to pay taxes on money they don't own.

    Just my 2 cents.

     
  5. loamigad

    loamigad Jr. VIP Jr. VIP

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    That totally depends on his country, for example sweden and usa exchange information, everything i earn "white" aka cpa, affiliate networks and such, will be reported to the irs, and information is shared with sweden.
     
  6. keith6andco

    keith6andco Regular Member

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    Occupation:
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    i agree - its only for their side of the operation they wont contact US tax authorities
     
  7. Torque09

    Torque09 Junior Member

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    You are right, Loamigad. Some of the countries have a tax information exchange agreement, but what I'm talking about, if CPA will not report your money to IRS, your home country will never know how much money you have earned.

    Keep in mind, it is your responsibility to report your income, even if CPA doesn't ask you for the W8. ;)

     
  8. jammie

    jammie Jr. VIP Jr. VIP Premium Member

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    It's for accountability; they can show how much money went to whom etc. and it means they aren't commiting fraud etc.

    Just makes it easier for the IRS i guess, but it annoys me as it doesn't effect me either!