I just received an email from Payoneer asking me to file a tax form. I think it is the first time they ask me to do so. It is a W8-ben. I am not a resident in the USA.
What does it mean?
The IRS has an automated tax information exchange agreement with several countries: Here is the link: Country-by-Country Reporting Jurisdiction Status Table | Internal Revenue Service
In those agreement there is the same clause:
Pursuant to the provisions of Article 25 of the Convention, each Competent Authority intends to exchange with the other Competent Authority annually on an automatic basis the CbC Report received from each Reporting Entity that is resident for tax purposes in its jurisdiction, provided that, on the basis of the information provided in the CbC Report, one or more Constituent Entities of the MNE Group of the Reporting Entity are resident for tax purposes in the jurisdiction of the other Competent Authority, or are subject to tax with respect to the business carried out through a permanent establishment situated in the jurisdiction of the other Competent Authority.
There are some countries with no agreement for now on: Argentina, Bulgaria, Curacao, Cyprus, France, Germany, Israel, Monaco, Singapore.
So let me explain, if I lived in Belgium, I would fill up the W8-ben now for my payoneer account, later on, the IRS would send my payoneer information to the belgian tax authority. I would receive a letter from the belgian authority to pay taxes.
If you have a lot of money on your payoneer account, transfer it to a paxum or epayservices or epayment account asap.
However, there is one thing that needs to be known: If people have no USD balance, are there Euro or GBP balanced reported too? it is a good question!
What does it mean?
The IRS has an automated tax information exchange agreement with several countries: Here is the link: Country-by-Country Reporting Jurisdiction Status Table | Internal Revenue Service
In those agreement there is the same clause:
Pursuant to the provisions of Article 25 of the Convention, each Competent Authority intends to exchange with the other Competent Authority annually on an automatic basis the CbC Report received from each Reporting Entity that is resident for tax purposes in its jurisdiction, provided that, on the basis of the information provided in the CbC Report, one or more Constituent Entities of the MNE Group of the Reporting Entity are resident for tax purposes in the jurisdiction of the other Competent Authority, or are subject to tax with respect to the business carried out through a permanent establishment situated in the jurisdiction of the other Competent Authority.
There are some countries with no agreement for now on: Argentina, Bulgaria, Curacao, Cyprus, France, Germany, Israel, Monaco, Singapore.
So let me explain, if I lived in Belgium, I would fill up the W8-ben now for my payoneer account, later on, the IRS would send my payoneer information to the belgian tax authority. I would receive a letter from the belgian authority to pay taxes.
If you have a lot of money on your payoneer account, transfer it to a paxum or epayservices or epayment account asap.
However, there is one thing that needs to be known: If people have no USD balance, are there Euro or GBP balanced reported too? it is a good question!
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