Quote:
Originally Posted by faxxaff
Your sniplet is about income from capital gains like dividends or interest payments. It does not apply to revenue flow or the size of the company.
Just look at the big company CCBill: they don't withhold 30% of payments to foreigners.
It's the model's responsibility to file her taxes in Spain. They are way higher than in the US, anyhow. She won't be able to duck that because most payments over 3000$ are reported to the revenue services in one way or another.
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Sorry but I still disagree and maintain that MFC would have to be nuts if they are not deducting that 30% and it has nothing to do with capital gains or interest payments. I?m talking about a US based company whose income was generated by a foreign person.
?a foreign person is subject to U.S. tax on its U.S. source income?.
CCBill considers itself just a processor for the transaction and not any particular foreign person?s source of income, unless of course their employees who I am sure pay income tax.
As for the models responsibility to file taxes in Spain is totally irrelevant, the IRS could less about that.