Msg#: 2165 posted 10:39 am on Feb 27, 2004 (gmt 0)
Hi all, Dear affiliates Outside the USA, When you take checks to bank do you pay taxes? When you get wire transfers do you pay taxes? Do you declare at tax paying institution that you have income? or do the bank tell you that you have to pay the tax?
Please share your experience, It would be very appreciated. In advance thank you for any comments regarding tax paying and online marketing outside the USA.
That W8-BEn (or I think there's a w9 too) is for the benefit of the US company dealing with you, it makes no difference to you in Canada.
In Canada you don't have to pay tax on that right away - but you will have to declare it on your income and pay tax on it at the end of the year. It's not free money, sorry. In short, track it and declare it.
Then (again, in Canada) if you have to pay more taxes than a certain limit - I think $2000 - they want you to pay installments on your taxes the following year. So if you made $8000 from US sources and had to pay $4000 taxes that year, the govt will want $1000 a quarter the following year as they'll be expecting that you will earn the same $8000 the following year, and don't want to wait for their money.
I think it gets more complicated when you start owning companies both sides of the border but that's when you need an accountant involved.