Do I have to pay US Tax if my status is Non US Biz (With US Activitis)

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Do I have to pay US Tax if my status is Non US Biz (With US Activitis)

omarkits

2:41 pm on Mar 4, 2009 (gmt 0)

I'm neither a citizen nor a resident of the US and I live outside of America, I going to hire a US based part time editor to work for my site, he will do daily updates for my sites.

Per Google's instruction, I think my status should be changed to "Non U.S. Business (With U.S. Activities)". Google indicates that I should obtain a TIN from the IRS, but Google didn't mention what kind of TIN they need, this makes me confused.

Also, if I changed my status, Do I have to pay US taxes then? (Pay the same taxes to a US business?)

[edited by: omarkits at 2:44 pm (utc) on Mar. 4, 2009]

netmeg

2:44 pm on Mar 4, 2009 (gmt 0)

You need to consult your own local tax authority or an accountant.

karkadan

6:54 pm on Mar 4, 2009 (gmt 0)

Exactly. Google only makes that procedure only to inform how things should run, but they are not "really cops". So, it is up to you to get the info, and have all the paperwork up to date.

omarkits

2:00 am on Mar 5, 2009 (gmt 0)

So you mean I can just keep my current status (Non-US biz with no US activities)?

leadegroot

4:41 am on Mar 5, 2009 (gmt 0)

This page:
[google.com...]
says
"Non U.S. Business with U.S. Activities: The payee is based outside of the U.S., but has equipment or employees in the U.S. that are involved with payee's participation in AdSense."

Will this person be an employee? Or just someone to whom you pay money?

I would recommend researching what defines an employee. :)

Swanny007

2:42 pm on Mar 5, 2009 (gmt 0)

If I was you I would just leave the status as-is. Consider that person in the US as a contractor and not an employee. That's how I do it and it works great.

Keep it simple.

[edited by: Swanny007 at 2:42 pm (utc) on Mar. 5, 2009]

netmeg

3:50 pm on Mar 5, 2009 (gmt 0)

Do NOT go on what you read in a forum. For your own sake, go ask a tax expert or an accountant.