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Tax Forms

Why does Traxsource require tax forms to be completed?
The requirements to complete these forms are imposed by the U.S. government and U.S. taxing authorities.

What determines what U.S. tax form I need to complete?
The location or residence of you and/or your company determines which tax form must be completed and submitted to Traxsource.  Generally, Content Providers located in the U.S. and U.S. Citizens operating as sole proprietors outside the U.S.  should complete form W-9 and Content Providers located outside of the U.S. should complete the appropriate form W-8 as listed below:

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Sole Proprietor: Complete form W-8BEN
Corporations: Complete form W-8BEN-E
Partnerships: Complete Form W-8IMY for the Partnership and also submit one completed W-8BEN for each Partner.

For more information and links to the relevant tax forms please log into your account, click on “Company Info”, and then click the “Tax Information” tab

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Do I have to complete a W-9 if I am a US resident? 

Yes. By submitting a W-9, you are certifying that you or your label is a U.S. person or U.S. Company, that the taxpayer identification number (TIN) you are providing is correct and accurate and that you are not subject to backup withholding. Payments cannot be made to you unless you provide Traxsource with a valid W-9 tax form.

Do I have to complete a W-8 form if my label/company is not registered in the U.S.?
Agreements with Traxsource can be completed for non-U.S. based labels without completing a W-8 form however if we do not receive a completed tax form we are required to deduct U.S. withholding tax at the full rate of 30% from all of your payments.  If you are based outside the U.S. and are not a U.S Citizen you must submit a valid U.S. Internal Revenue Service W-8 tax form in order to take advantage of any reduced withholding tax treaty rates that may be available to you. You should consult your in-house tax department or an outside tax advisor to determine which W-8 form you are required to complete.  Traxsource cannot provide tax advice other than giving basic instruction on what parts of the tax form need to be completed.

Why do you require a Tax Identification number on the form?
The U.S. government requires that a tax identification number be listed on the form in order for it to be valid.

(U.S. Resident)
For form W-9 you must either enter your Company Business tax ID Number (EIN), your U.S. Social Security Number (SSN) or your U.S. Individual Tax ID Number (ITIN). Please note that all U.S. tax ID numbers will be verified through the IRS’ E-Services verification system.

(Non-U.S. Sole Proprietors/Partners) For form W-8BEN either the tax ID number issued to you by your country of residence or a U.S. Individual Tax ID Number (ITIN) must be listed on the form in order for it to be a valid tax treaty claim. Please DO NOT provide your VAT registration number on form W-8BEN as a VAT # is not acceptable for this tax form as the tax pertains to Annual Income Tax – Not Sales/Value Added tax.  Instead, refer to the following website for country specific information on acceptable Non-U.S. tax IDs. http://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-identification-numbers/

(Non-U.S. Corporations) For form W-8BEN-E either a U.S. Business Tax ID Number (EIN) or the corporate tax ID number issued to you by your country of residence must be listed on the form in order for it to be a valid tax treaty claim. Please DO NOT provide your VAT registration number on form W-8BEN-E as a VAT # is not acceptable for this tax form as the tax pertains to Annual Income Tax – Not Sales/Value Added tax.  The only exception is if your VAT number is the same exact number you use to file and pay your annual corporate income tax returns each year.

IMPORTANT:  All Non-US Sole Proprietors/Corporations/Partnerships
Please DO NOT provide your VAT registration number on form W-8 as a VAT # is not acceptable for this tax form as the tax pertains to Annual Income Tax – Not Sales/Value Added tax.  

Where do I send tax forms?
Once you have completed and signed the forms you can submit it to us by email to labelsupport@traxsource.com or by fax to 1-954-343-1390.

Or you can mail it to:

Traxsource Inc.

Attn: Accounting Dept.

2436 N. Federal Hwy, # 216
Lighthouse Point, FL 33064 U.S.A.

Do I ever need to update the tax forms?
W-9 tax forms will remain valid unless there is a change of circumstance, address or payee.

W-8 forms are valid for a period of 3 years unless there is a change of circumstance, address or payee. For example, a W-8 form completed and submitted on Aug 1, 2017 will remain valid until December 31, 2020 provided there are no changes to your company, address or payee.

What are the applicable tax treaty rates using the W-8 form?
As a non-U.S. Content Provider you must complete the relevant Form W-8. The standard U.S. non-resident withholding rate is 30%, but you may qualify for a lower negotiated treaty rate if your country of residence has a tax treaty in place with the U.S. .  Reduced tax treaty rates vary depending on where you claim to be a resident for income tax purposes under the terms of the treaty. For more information on this please visit the IRS website: Publication 901- U.S. Tax Treaties https://www.irs.gov/pub/irs-pdf/p901.pdf

What if there is no tax treaty between my country of residence and the U.S.?
If your country of residence has not entered into a tax treaty with the U.S. we are required to deduct the standard US non-resident withholding rate of 30% and remit it to the U.S. government on your behalf.

When will I receive my annual 1099-Misc tax form (U.S. based entities)?

1099-MISC tax forms are issued to U.S. based entitles no later than January 31st following the end of each calendar year. As per section 14(f) of our agreement, tax forms will be provided electronically.  You will be notified by email as soon they are available for download from your account. Copies of form 1099-MISC will be provided by mail through the U.S. Postal Service upon request only. To request a copy by “snail mail” please contact labelsupport@traxsource.com. Please be sure to keep your contact information up to date in your company profile to avoid any delays in receiving your tax form.

When will I receive my annual 1042-S tax form (Non-U.S. based entities)?
1042-S forms are sent to Non-U.S. based entitles no later than March 15th following the end of each calendar year.   As per section 14(f) of our agreement, tax forms will be provided electronically. You will be notified by email as soon they are available for download from your account. Copies of form 1042-S will be provided by mail through the U.S. Postal Service upon request only.  To request a copy by “snail mail” please contact labelsupport@traxsource.com. Please be sure to keep your contact information up to date in your company profile to avoid any delays in receiving your tax form.

Where can I find and download copies of my annual 1099-MISC or 1042-S tax forms?
To download copies of your annual 1099-MISC or 1042-S tax forms, log into your account and click on “Files” from the “Accounting” section on the menu.  Here you can find copies of your annual tax forms from years 2015 and forward. If you need copies for any years prior to 2015 please contact labelsupport@traxsource.com with your request.

 

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