Question regarding taxes
I'm strongly considering doing local marketing, advertising a certain product in my area and then referring people back to my site. I would be an affiliate of a particular company. I'm from the U.S., but the company is stationed in Hong Kong.
Thus, I'm beginning to think of necessary tax procedures. I read that the W-9 form is a necessary form for the "employer" to handle (which maybe doesn't apply to persons in Hong Kong?) and then that a 1099 form needs to be filled out by the affiliate who lives in the U.S. What about any of you U.S. folks. How do you do your taxes? How do you handle this affiliate stuff?
I'm just asking asking, because I wanna be sure to cover all my bases.
Thanks, guys!
Recent Comments
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mama2Karsten is right. You should consult an accountant familiar with your situation. I used turbotax and their support staff. I have gotten very good advice over the years. I had a international tax question (USA and CANADA) and paid for the research and advice. Turns out a specific Tax treaty between the US and Canada covered the area in question for me and defined how I should do my taxes. Very quick and helpful support for a reasonable fee. So if an accountant is too busy this time of year, try your tax software support. There is likely a tax treaty between the US and Hong Kong. Good Luck!
Bill
Keep track of all payments and transactions. Keep very good support records. I use a 1099 form and a schedule C for fed...but laws are different in different states also. Ask your accountant to be sure... some laws have changed since last year.
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Any revenue you earn from the company is typically taxable in the country that you reside, not the country that is paying you. The affiliate world is a confusing one to the IRS and to many accounts and tax lawyers, so if you do get advice make sure you get it form someone that has knowledge of how the Internet operates.
Thanks, Kyle! I appreciate it.
Kyle, that is true today but was not true when I lived in Canada for ten years. Before the present Tax treaty between the USA and Canada, I had to pay taxes to both countries. Today, it is pay the tax where you live. I think she still needs to research the tax treaty between her country of resident and the country from which she is earning income.
Yeah, I agree. Tax rules change between provinces, states and countries. It is important that you get expert advice in your area if you want the precise answers you are looking for.
Thanks, guys. Hearing this repeated, finding out expert advise in my area, I really want to take to heart these words. Thank you.