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W-8BEN Tax form - Tax Treaty Benefits - Australia

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sean83 View Drop Down
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  Quote sean83 Quote  Post ReplyReply Direct Link To This Post Topic: W-8BEN Tax form - Tax Treaty Benefits - Australia
    Posted: 11/November/2011 at 16:18
Hi, I'm not really sure where to post this, but I am an Australian internet marketer, I have joined this American CPA network and to put this short, CPA means Cost Per Action.

And advertisers pay this network to find affiliates to promote their products online and find leads for them, so the network is the middle man between the affiliate and the advertiser.

Anyway I joined them last week, and they require me to submit the W-8BEN tax form, for foreign affiliates so I can get paid.

On part 2 of the form:

9a: The beneficial owner is a resident of ............. within the meaning of the income tax treaty between the United States and that country.

I read this page on the IRS website, and it says something about having a reduced rate of withholding, I am not completely clear on this, or what this really means.

But to put it short, am I better of ticking this part on the form, or just leaving it?



Thanks Anyone

Edited by sean83 - 11/November/2011 at 16:23

MartinO View Drop Down
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  Quote MartinO Quote  Post ReplyReply Direct Link To This Post Posted: 11/November/2011 at 16:51
I do not know, but you had better indicate on your page that you are not a 'Certified Practising Accountant' because that is what CPA stands for in this country.

Also e-mail spam is illegal in this country with fines for those who do, so if the membership of the organisation you have joined requires this, watch out.
I am NOT a lawyer. Anything said is NOT legal advice.

Please post your legal questions in a forum rather than sending a PM. Thanks.

rambler1 View Drop Down
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  Quote rambler1 Quote  Post ReplyReply Direct Link To This Post Posted: 11/November/2011 at 18:21
a withholding tax is a tax that is withheld from your payments and remitted to the IRS by the payer.

You can get this back if you fill out a foreign tax return in the US but generally the IRS keep it as part of the double tax treaty but enough of that as this area is complex. anyway

You are a resident of australia and we have a double tax treaty with the US so Id fill out the bit saying that, therefore the payer will deduct on 5% of the gross and send it to the IRS and remit the rest to you.

If you dont they could deduct up to 50% of the gross payment to you.

Its like the mafia everyone takes a cut.

Edited by rambler1 - 11/November/2011 at 18:22
Luke 11 46: Woe unto you also, ye lawyers! For you load men with burdens that are difficult to carry, and you yourselves won't even lift one finger to help carry those burdens.

khon View Drop Down
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  Quote khon Quote  Post ReplyReply Direct Link To This Post Posted: 11/November/2011 at 19:26
You might be able to get an input credit to reduce your tax liability.
Personal opinion only, should not take it as legal advice

sean83 View Drop Down
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  Quote sean83 Quote  Post ReplyReply Direct Link To This Post Posted: 11/November/2011 at 19:55
Originally posted by rambler1

a withholding tax is a tax that is withheld from your payments and remitted to the IRS by the payer.

You can get this back if you fill out a foreign tax return in the US but generally the IRS keep it as part of the double tax treaty but enough of that as this area is complex. anyway

You are a resident of australia and we have a double tax treaty with the US so Id fill out the bit saying that, therefore the payer will deduct on 5% of the gross and send it to the IRS and remit the rest to you.

If you dont they could deduct up to 50% of the gross payment to you.

Its like the mafia everyone takes a cut.


Your saying if I don't tell them this they could have half my payment?

I'm a little overwhelmed and confused with this, I hate filling out these types of forms.

Do you think you could download the form and fill it out how I should, and email it to me at

I'd be very grateful if you could.

Edited by MartinO - 12/November/2011 at 00:44

MartinO View Drop Down
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  Quote MartinO Quote  Post ReplyReply Direct Link To This Post Posted: 12/November/2011 at 00:44
Sean, we cannot do that. It is up to you to make your own decisions. We only offer opinions here, we do not give legal or financial advice.

e-mail address removed from your post as we do not allow that either.
I am NOT a lawyer. Anything said is NOT legal advice.

Please post your legal questions in a forum rather than sending a PM. Thanks.

sean83 View Drop Down
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  Quote sean83 Quote  Post ReplyReply Direct Link To This Post Posted: 12/November/2011 at 02:40
Ok, but could you please clarify this bit for me, I'm not sure what part of the form rambler is referring to.

Originally posted by rambler1


You are a resident of australia and we have a double tax treaty with the US so Id fill out the bit saying that, therefore the payer will deduct on 5% of the gross and send it to the IRS and remit the rest to you.


I'm assuming he is referring to 10 of part 2:

Special rates and conditions (if applicable—see instructions): The beneficial owner is claiming the provisions of Article.......... of the
treaty identified on line 9a above to claim a........... % rate of withholding on (specify type of income):............. .
Explain the reasons the beneficial owner meets the terms of the treaty article:..........................................................................................................................................

If I wanted to fill this section out, what would I put for the bolded parts?

rambler1 View Drop Down
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  Quote rambler1 Quote  Post ReplyReply Direct Link To This Post Posted: 12/November/2011 at 21:00
this may be wrong so get some advice from your supplier who should know what section you should fill out but in my book you should only need to tick 9.A and list Australia as the country of residence for the correct witholding tax to be held 10 part 2 does not seem to apply to you.
Luke 11 46: Woe unto you also, ye lawyers! For you load men with burdens that are difficult to carry, and you yourselves won't even lift one finger to help carry those burdens.

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