US Withholding tax on royalties solutions

[CyprusLawyer101]

This is the way intelligent conversations can be done, even on the internet

Yes, indeed!

 

[Puzel12]

US LLC being a Thailand resident, since Thailand has a tax-treaty with US and it is a territorial tax system total tax would be 0 %

does anyone know if US LLC is considered as business income in Thailand and not as being employed? As far as I understand being employed by foreign company and living in Thailand means you are taxed here.

 

[noname]

I am a non-US resident and I provide online services from my country for a US based company and they have asked me to fill out and send W-8BEN. I am trying to understand does it free you of 30% withholding tax or not if my country does not have any tax treaty signed with the USA? Part 2 form of the form is confusing me and I don't know how to fill it or should I leave it empty?

Thank you

 

[Marzio]

does it free you of 30% withholding tax or not if my country does not have any tax treaty signed with the USA?

If your country doesn’t have a treaty with US then you’ll pay 30% wittholding tax.

 

[noname]

If your country doesn’t have a treaty with US then you’ll pay 30% wittholding tax.

Yea that make sense and that's what I thought too. I don't understand why many companies from the USA are thinking if their service provider in this case me just fill out the W-8BEN and won't need to withhold 30%. Upwork does not withhold any tax after filling out this form, and I could name many other companies, but I guess they are making themself a huge issue if the IRS audit their business and finds out.