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Tax form

ShielsShiels Posts: 119Member
edited March 2013 in General Discussion
So I'm a bit of a noob when it comes to taxation...

Do we have to fill in the IRS form? On the form it says "do not use if you are a foreigner claiming income from a US business"... isn't that what we are doing?

Besides that, I'm not sure if me and my brother qualify as a partnership or not. Should I rather do individual and give him his split of the funds from that? Can we just say we are a partnership because we are agreed upon it?

Thanks!

EDIT: do I have to apply for an IRS number (SSN, ITIN or EIN) in order to fill the form? This kinda delays our ability to upload :(
Post edited by Shiels on

Comments

  • KonajuGamesKonajuGames Posts: 560Member
    The IRS forms are a @$% to work out for foreigners.  I've been through all this with the Microsoft Windows Phone Marketplace, just before Microsoft arranged with the IRS to not require an ITIN for foreign individuals.  OUYA Inc do not state if they also do not require an ITIN for foreign individuals.  In the case they do require it, here is some information.

    SSN is only for US residents.  ITIN is for foreign individuals.  EIN is for US or foreign small businesses or self employed.  Without an ITIN or EIN, you may have 30% withheld by the IRS (on top of the 30% kept by OUYA Inc).

    An ITIN requires original or notarized identity documents to accompany Form W-7.  Depending on where you are in the world, notaries can range up to $160.  You will also require a letter from OUYA Inc on official OUYA Inc letterhead stating that you will be receiving royalty payments from OUYA Inc. This letter must be individually signed by an OUYA Inc representative (no photecopied signature).  The letter body must also fit specific requirements or the IRS may reject it (and keep your notarized document copies that you paid good money for).  If you re-apply, you will need new notarized documents.

    Here is a good guide for applying for an ITIN.

    An EIN does not have the same identity requirements.  As a foreigner, you cannot use the online EIN application.  You must the other forms of EIN application.
    • download Form SS-4, complete it and fax back (several days)
    • download Form SS-4, complete it and mail back (four weeks)
    • phone (international call charges apply)

    You will be earning royalties from sales.  You are not claiming income from a US business.  The specifics of how the W8-BEN is completed will also depend on the tax treaty that your country of residence has with the US, if any.

  • ShielsShiels Posts: 119Member
    Jaw on floor :O

    Thanks!

    I sincerely hope I don't have to give that ITIN. I'm going to submit without it for now.
  • MagnesusMagnesus Posts: 304Member
    For me things are simple - I don't submit to stores that require ITIN/EIN, so I hope OUYA will not require them.

  • OrikuOriku Posts: 263Member
    You can also use your SSN (if you are a US citizen). You don't need a EIN/ITIN in that case. 
  • ShielsShiels Posts: 119Member
    Actually we are South African. I'm going to submit without, and then later claim back with that other form. We need to get on the store asap, so unfortunately 4-6 weeks for an ITIN isn't gonna work.
  • MagnesusMagnesus Posts: 304Member
    edited March 2013
    @Oriku - the problem is for people outside US.

    We need anwer from OUYA ASAP because it's very important. I assumed they don't require it because they only have W-8 submission form.
    Post edited by Magnesus on

  • The_CraigThe_Craig Posts: 89Member
    Yeah we really need a call on this from the OUYA guys. Anybody of them out there listening?
  • JonAbramsJonAbrams Posts: 51Member, Administrator, Team OUYA
    Yup, we're looking into it.
  • JonAbramsJonAbrams Posts: 51Member, Administrator, Team OUYA
    edited March 2013
    The answer I have at this point is that we cannot legally offer tax advise. We recommend you contact your accountant.

    We can point you towards the IRS' FAQ on the W-8ben though: http://www.irs.gov/pub/irs-pdf/iw8ben.pdf

    I'll continue working to get more info regardless.
    Post edited by JonAbrams on
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