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. should complete form W-9 and Content Providers located outside of the U.S. complete the appropriate form W-8.
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. You should consult your in-house tax department or an outside tax advisor to determine which W-8 form you are required to complete.
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.
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 (TIN). Please note that all U.S. tax ID numbers will be verified through the IRS’ E-Services verification system.
For form W-8BEN either a U.S. Individual Tax ID Number (TIN) or the 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.
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.
Where do I send tax forms?
Once you have completed and signed the forms you can submit it to us by email at firstname.lastname@example.org or by fax to 1-954-343-1390.
Or you can mail it to:
Attn: Accounting Dept.
590 SW 9th Terrace, Suite 4
Pompano Beach, FL 33069 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, 2015 will remain valid until December 31, 2018 provided there are no changes to your company/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. Reduced tax treaty rates vary depending on where you claim to be a resident for income tax treaty purposes under the terms of the treaty. For more information on this please visit the IRS website: Publication 901- U.S. Tax Treaties
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 sent to U.S. based entitles no later than January 31st following the end of each calendar year. Please be sure to keep your mailing address 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.