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Topic # 12101 28-Feb-2007 09:06
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my friend just starting reselling an american web host providers plans. he lives in nz. he filled out this form:

http://www.irs.gov/pub/irs-pdf/fw8ben.pdf

is this the right form to use for him? he is a new zealand citizen living in new zealand and reselling web hosting plans from an american based web hosting company.the other form was this:

http://www.irs.gov/pub/irs-pdf/fw8eci.pdf


the company said they'll pay all the tax in america if he fills out that form,so he doesn't have to hire an american accountant in america right if the company said they'll pay the tax?

and regarding this tax form,it asks for a us tax payer identifiction number,a ssn or itin or ein.i think the instructions for the tax form said he doesn't need one of these if he earns less than $500,000. is this true?

for the foreign tax identifying number he wrote his new zealand ird number.is this correct?

and on the "treaty benefits" section,he didn't fill it out because he said it is not necessary to fill this section out,even though he might get lower tax or something? do you really need to fill this section out?

And on the new zealand ird website it is unclear about whether he would pay tax because the servers are located overseas but he updated the prices from new zealand using his computer. so would he pay gst and income tax? and it also says in all circumstances,he needs to report his worldwire income for tax purposes? what does reporting your worldwide income mean,and what forms do you need to fill out for this?

and yes he has emailed the ird,but he doesn't quite understand the answers they gave him, and he can't afford an accountant at the moment.

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  Reply # 62236 28-Feb-2007 09:09
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stacey1122:
and yes he has emailed the ird,but he doesn't quite understand the answers they gave him, and he can't afford an accountant at the moment.


I would suggest he find the money to pay for one. Not understanding the law is no excuse for not paying tax.






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  Reply # 62238 28-Feb-2007 09:17
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as i said,he doesn't have the money for an accountant. if anyone can answer these questions,that would be great.


also,what accoutant services in auckland new zealand offer accounting advice over the internet? just advice,so he can ask these specific questions to them? it may be cheaper than employing an accountant to fill out the forms,and rather he just get advice and fill out the forms himself.





sbiddle:
stacey1122:
and yes he has emailed the ird,but he doesn't quite understand the answers they gave him, and he can't afford an accountant at the moment.


I would suggest he find the money to pay for one. Not understanding the law is no excuse for not paying tax.




 
 
 
 


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  Reply # 62252 28-Feb-2007 12:37
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things like this best talk/seek for advice in person. Or at least in voice conversation. I doubt many firm will be willing to conduct any advice over internet for the initial phase on email, too untrustworthy.




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