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Why do I need to submit Tax Forms?


Traxsource is required by U.S. tax law to obtain a valid tax form for any person or company to whom we issue payments.  


For U.S. Citizens and U.S. Corporations:

You must submit a W-9 form.  The tax information gathered is used to report the income Traxsource has paid out to you to the U.S. Internal Revenue Service, as required by law.  By January 31st, each year you will receive a form 1099-Misc tax statement showing the total amount of royalties which have been paid out to you during the previous year. 

You can find more information on how to submit your W-9 tax form here .

 

For Non-U.S. Individuals and Non-U.S. Corporations:

You submit a W-8 form.  If your country of residence has entered in to a Tax Treaty with the United States, providing a completed W-8 tax form will allow you to claim a reduction in the amount of tax imposed by the U.S. Government your income as a Non-U.S. residents.  In many cases the tax treaty provides a full exemption from U.S. tax withholding. By March 15th each year you will receive a form 1042-S tax statement showing the total amount of royalties which have been paid out to you during the previous year and the amount of tax withheld, if any.  You can find more information on the tax treaty rates here .

Please note: If we do not receive a completed W-8 Tax form we are required by law to withhold 30% of your payment and issue it to U.S. Government on your behalf.  It is extremely important to submit a W-8 tax form in order to avoid unnecessary taxation on your account.

You can find more information on how to submit your W-8 tax form here .

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