Forum Moderators: martinibuster
Anything that anyone has heard on this issue of late? I bet the adsense forum is gonna heat up a lot when this finally happens. Would hate to be in your shoes at that time Jenstar ;)
I see no difference in the US company shipping the products to me,and for us to ship them back to the USA, over having our supplier shipping directly to the customer directly.
I know that sales tax is a different kettle of fish, but im
only interested in the Fed Tax as it relates to Google Adsense Program.
I don't think there will be any TAX issues for people outside US/Canada/UK.
This has all been covered a while back - there are no US tax issues for anybody who does not have a "business presence" in the US.
The exact definition of "business presence" was initially confused due to some rather broad and inaccurate wording by Adsense (which still hasn't been fixed), but just having non-owned server/webspace in the US is OK (no presence).
In most countries (not just Canada/UK), local (national) tax is likely to be payable on any profits from the Adsense earnings of course.
If I pay tax to the Americans, then I get a tax rebate from
the Canadian government as we have a recepical tax agreement. I rather keep things simple, and avoid as much paperwork as possible.
They say!
<snip>
I just asked if there was now a delay, and what affect it would have on Octobers payments
Will let you know what i get back.
[edited by: Jenstar at 8:31 pm (utc) on Nov. 13, 2003]
[edit reason] Sorry, no email quotes please, as per TOS [/edit]
I remember people saying that irrespective of our interpretations the final meaning will be that which Google's lawyers make it to be.
Yes, in the previous thread on the subject [webmasterworld.com...] I described the reply I had received from Google when I asked for clarification - it was a carefully worded canned reply with lots of legal disclaimers, no doubt cleared by their lawyers.
As a reminder, Google said in essence using a third-party hosting service or server, or using a US mailing address, is NOT (by itself) a business presence.
Other things might be a business presence, such as owning a server (physical hardware you have the right to do what you want with) or having employees in the US (connected with the adsense income). The next 15 lines or so were disclaimers (so here's mine: your situation may vary, check locally or ask Adsense).
If you want the full chapter-and-verse on what their lawyers are basing this on, read the OECD "Clarification on the application of the permanent establishment definition in e-commerce" report of 22 Dec 2000. That's the international agreement that covers this stuff.
Kudos to Google for making it easy and clear though the support is sure to get bombarded today.
Accordingly I was required to sign and verify (inputting your name constitutes as sign) , my IP address and time of signing were logged.
I was then taken to a thank you screen , told my payments would continue as before. FOr information payments after 30th November will be held up, that means your next cheque wont be posted unless you fill one of these forms.
I own a US corporation (with board and shareholders and stuff). But I am risiding in Germany (found the company when I lived in the US).
Now, I have been paying Federal Corp. and State Corp. tax, I won't change that. All expenses and sales occur in the US.
I do not have any employees.
Now, in order to confim my EIN with Adsense tax info I will have to confirm to live and work in the US, which I am not.
I am stuck in the middle, any idea?
Thanks, Jens
We've provided the tax information above as general guidance only. However, it is up to each publisher to understand and adhere to the appropriate tax rules.... For tax advice or more technical questions about how tax laws apply to you, please consult your tax adviser.
There could be huge implications if Google started giving out tax advice, especially if the advice didn't turn out to be the best choice for the publisher ;) And if they did so and the advice was less-than-perfect, you could bet that someone would sue Google.
I own a US corporation (with board and shareholders and stuff). But I am risiding in Germany (found the company when I lived in the US).
Note that the "you" they're talking about is the US Corporation, not you as a person. The "I am a US person" applies to the corporation (it's a person) - the corp. name goes in the "name" field. See the IRS instructions they link to ("other entities").
But the simplest way to be sure is to ask Google, don't take my word for it (I'm no expert) although they have made fairly clear the W9 does apply to US corps.
Actually as your company is resident in the US, AND also resident in and subject to German tax (assuming you're the majority shareholder resident in Germany) you seem to have the worst of all worlds with that setup.