What is TurboSquid’s Withholding Policy for artists from tax treaty countries?
posted this on May 12, 2010 05:59
TurboSquid has conducted a rigorous analysis of the U.S. tax regulations that govern U.S. Internal Revenue Service (IRS) withholding regulations for payments to our non-U.S. artists (those considered "Non-Resident Aliens" according to IRS code). As a result of this analysis, we are clarifying our tax withholding policy regarding artists in countries with which the United States has tax treaty agreements.
In order to be fully compliant with U.S. tax regulations, the IRS requires that all Non-Resident Alien (NRA) artists who wish to enjoy tax treaty benefits have a U.S. Taxpayer Identification Number. Individuals who wish to enjoy these benefits will need an Individual Tax Identification Number, (ITIN), while foreign entities that are not individuals (such as foreign corporations and foreign partnerships) will need an Employer Identification number (EIN) on file with TurboSquid. Those who do not have such a number on file will be subject to the IRS statutory rate of 30% withholding on their U.S.-Source income. Foreign Source Income is not subject to tax withholding.
We believe that this interpretation allows us to be in full compliance with U.S. tax law. Just to be clear: TurboSquid receives no benefit from this policy, and our only interest is in helping all affected artists enjoy the tax treaty benefits to which they are entitled by helping them to file the appropriate documentation.
Please feel free to contact us through our support system for any further questions, or post your questions and concerns on the TurboSquid forums.