International Domainers Help Please - W8 Forms

[ChicoSuave]

Hi guys,

I've got a few domains with nice amounts of traffic and I've been looking forward to move them away from sedo and give another parking company a try, since I guess that I could have better pay out rates. So far, being an individual located in Chile (and/or Australia) all parking companies I like ask me to fill out a W8 form, and since I haven't found much info online about how this works, I'd be really thankful that anyone told me how the tax withholding thing works in their experience. I understand 30% of your earnings are retained and taxes are deducted, but how do you know if your income should be subject to any taxes, and when are the whithholded amounts released back to you? Sorry if this question is out of place, but I would be really thankful if any of the international domainers could help me out. Thanks!!!

 

[JoeCanadian]

I don't believe you do have to pay US income taxes on US parking income if you are not a US resident/citizen. You pay your income taxes in your home country. The parking/domain sellers that send me money don't withhold anything for US federal taxes.

I think there is a form that you fill out to certify that US federal taxes do not need to be withheld. One parking company asked me to fill it out.

 

[ChicoSuave]

Thanks Peter. I really appreciate your help. The way you describe it is the way O though it should go, but read in a couple of places about non US affiliate marketers having a percentage of their earnings withheld. Great to know that's not your case. And yes, there is a form I've been asked to fill, but I wanted to research a bit before doing it. By the way, what parking companies do you use?