How to fill out the W-8BEN form on iStock

As you know, since January 29 on the Istock stock photo site there have been significant changes related to payments of earned funds, namely – the payments through Moneybookers (Skrill) were discontinued, and payments are now monthly by default, provided the minimum withdrawal amount is reached at the end of the reporting month. Currently, this minimum is set at $100. But that’s not all.

Another important change concerns tax payments. Now you need to fill out the W-8BEN tax form for Istock as well, in order to avoid losing 30% of earnings from sales to U.S. buyers.

Previously, I described the nuances of filling out this form for microstock agencies Shutterstock (here) and Depositphotos (there). For those who haven’t encountered this before, I want to clarify that filling out this form is necessary to avoid double taxation of your income (in your home country and in the U.S.).

By filling out this form, you confirm that you are not a U.S. resident. This form can be left unfilled, but then 30% tax withholding will be applied to your earnings paid into the U.S. treasury. And you don’t want extra expenses, right?

So, I recommend reading on how to correctly fill out the W-8BEN tax form on Istock.

W-8BEN Form on Istock

Tax Interview Section

So, to fill out the W-8BEN form on Istock, go to the “Tax Interview” section in the left menu on your profile page.

After carefully reading the explanation about why and when you need to fill/update the tax form, click the button with the strange translation “Report income”, which is more logically named “Take a Tax Interview” in English.

Next, you’ll be taken to a verbose preamble to the form filling, which is in English for all languages. The first page explains what to expect when completing this form, as the title suggests.

The exact text says:

This short tax interview will guide you step-by-step to provide the tax information we need. Before starting, please note the following important information:

• Navigation Tips. Always use the “Continue” and “Previous” buttons to navigate through the interview. If you exit the interview before completing it, your answers will be lost.
• Get Help. If you need assistance answering a question, use the “Help guide” available in the top-right corner of any interview page. Also, quick help is available when you hover over an input field.
• Be Careful. Fill in all required fields, including those marked with red asterisks, which indicate mandatory questions. Check that the information is accurate. Some fields may be repeated.
• Provide Electronic Consent. We will ask you to provide an electronic signature. If you do not, you will need to print and mail us the completed tax form.
• Print a Copy for Your Records. At the end of the interview, you will have the option to print the tax form.

So, let’s start gathering your tax information now.

Then you can either continue or go to the next page.

Profile Section

Click “Continue” to go to the “Profile” tab. Here you are asked if you are an individual or an organization:

Are you registered with us as an individual or as a representative of a corporation, trust, partnership, company, or other entity?

Answer options:

• Individual
• Sole proprietor
• Corporation, Trust, Partnership or LLC

You should answer as you did when registering on Istock; in most cases, this will be “Individual.” Immediately after, new fields for filling appear. Remember, all fields must be filled out in Latin characters!

Now check that your first name and last name are spelled correctly, enter your date of birth and country of residence/citizenship.

After completing these, you can press “Continue” to go to the address confirmation page, mainly needed for sending postal tax notifications, useful tips, and for verifying driver’s licenses and passports.

Some lines might be pre-filled; if not:

• The first line – “Country” – country of residence, easy to select from the list.
• The second line – “Address Line 1 (Street address)” – the first address line, for street name,
• Next line – “Address Line 2 (Suite, unit, building, floor, etc)” – for house and apartment number, floor, block, etc. You can also put these in the first line using numbers and dashes.
• Then – “City” – city of residence.
• “State / Province” – region, district, or area, etc.
• “Zip / Postcode” – postal code.

Next, two checkboxes. The first confirms the address is valid. The second should be checked if the mailing address differs from the registered address (likely you will need to fill a few more lines for the actual address).

Consents Section

Click “Continue.” Now you are on the “Consents” or “Confirmation” page. Here you must answer two questions. The first is:

“We may ask you to provide a signature to identify tax documents. If you sign tax documents electronically, we need your consent. If you do not consent, you will need to print the tax form at the end and mail it with your signature by post.

I confirm my consent to the validity of my electronic signature.”

Check the “Yes” box.

The second question:

“If you want, we can provide report documents required by law (e.g., forms 1099-MISC, 1042-S) electronically. In that case, you must confirm consent to receive these documents electronically.

I confirm my consent to receive electronic tax reporting documents.”

Although electronic signatures are not yet fully recognized as legal proof in our countries, it’s advisable to check “Yes.” Then click “Continue.”

Status Section

So, we are halfway through the interview on the “Status” page. This is perhaps the most critical part of filling out this form. The question is whether you are a U.S. resident.

U.S. resident status is given to a person legally living in the U.S. under immigration laws, unless this status has been revoked administratively or judicially, or someone who has been in the U.S. at least 31 days in the current year and 183 days over the last three years, including the current year.

The question is:

“For tax purposes, are you a U.S. citizen, U.S. resident, U.S. collaborator, or U.S. corporation?”

Choose “No” and click “Continue.”

Next is the beneficial ownership question, simply – who owns the money. In my case, the beneficial owner type is set automatically to Individual:

Type of Beneficial Owner: Individual

So just click “Continue.” On the next page, there is a test to let Istock verify your status for U.S. tax purposes.

You need to select the statements that apply to you.

Statements include:

• I have a U.S. passport.
• I was born in the U.S. and have not renounced my rights at birth.
• One or both of my parents were born in the U.S.
• I have received or held a Green Card.
• I have been in the U.S. in the last 3 years.
• I hold a non-immigrant visa type “F”, “J”, “M” or “Q”.
• None of the above apply.

Check the last item (if applicable) and happily click “Continue.” Now you arrive at a page saying you may be eligible for tax treaty benefits if your country has a treaty with the U.S.

Your country is already indicated, and if no boxes were checked on the previous page, just click “Continue.”

Tax Identification Number

Here you are asked if you have a taxpayer identification number. It can be a U.S. or foreign TIN. Without it, no treaty benefits will apply. So click “Yes.”

New fields appear. It is stated that the name on the TIN must match the name given above. The first field is for U.S. TIN holders. A checkbox confirms if the person obtained a U.S. TIN in the last 30 days.

The second field is for holders of foreign TINs, including ours. Enter the number without dots or spaces. Confirm by checkbox that the number is correct and used for tax purposes. Scroll down to the coveted “Continue” button and press it.

On the next page, you will receive a pleasant notification of the level of tax benefits you qualify for.

Just rejoice and click “Continue.”

Next is another question:

“Are you the owner or manager of a U.S. business that produces services, products, or goods?”

This question is related to the fact that tax reduction or exemption in the U.S. does not apply if you have your own business in the country. Any entrepreneurship that yields income for you or your employees.

Choose “No” and click “Continue.”

Form Completion Review

Hooray! We have reached the review stage! Now check the form for accuracy and if satisfied, click “Continue.”

If you previously chose not to use electronic signature, you will need to print this completed form by clicking “Print,” sign it, and mail it to Istock by regular post (this is written in red at the end).

Thought that’s all? No! There is a lot more text, saying:

“Under penalty of perjury, I certify that I have reviewed the information provided in this form, and to the best of my knowledge and belief, the information is true and correct. Under penalty of perjury, I certify that:

1. I am the beneficial owner (or an authorized representative with power of attorney) of all the income to which this form relates or I use this form to certify myself as the owner or account holder of a foreign financial institution;
2. The person identified in line 1 of this form is not a U.S. citizen;
3. The income to which this form relates (a) is not effectively connected with conduct of trade within the United States, (b) is effectively connected but is exempt from tax under a tax treaty, or (c) the partner’s share is consistent with the tax treaty;
4. The person identified in line 1 of this form is a resident of the country listed in line 9 that is a participant in a tax treaty with the United States (if applicable);
5. As a foreign person, the beneficial owner is exempt from broker transactions or barter exchanges under the instructions; and
6. I agree to provide a new form within 30 days if any statement in this form becomes incorrect.

Check all the boxes. Next comes this text.

Additionally, I consent to the disclosure of this form to any withholding agent having the authority to control, receive, or pay income to which I am beneficial owner.

The Internal Revenue Service does not require your consent for any provisions of this document except for the required certifications of your non-U.S. status and, if applicable, claim for treaty benefits.

By typing my name, date, and e-mail associated with my account, I acknowledge that I understand I am signing tax documentation knowing the penalties for submitting false information.

Following are fields to fill:

“Name of authorized beneficial owner (or person authorized to sign beneficial owner’s documents)”

Here enter your first and last name exactly as previously entered.

“E-mail used to log into the account”

Enter your e-mail. Below it says:

“The e-mail you entered must be accurate.”

In the “Capacity in which acting” field, write “Beneficial Owner.”

The last line says:

If you are satisfied with the information provided on the W-8BEN form and have signed the above certifications, click the “Submit W-8BEN” button to complete the process.

Click the “Submit W-8BEN” button and you will be directed to the confirmation page, which says:

You have completed the tax form. Your information has been received and may be subject to review in the future.

Click “Exit Interview” to exit.

Click the coveted button.

Congratulations! You are done!

This article is available in the following categories: About Microstocks, Istockphoto