Quote:
Originally Posted by Jet Set Cat
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.
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There is a difference between income and revenue. The models are not being paid a salary either. The model runs a freelancer type business in Spain and that's where she has to pay tax - whether she is aware of that is another question. A cam company is just an intermediary who facilitates broadcast and billing for a fee, that is deducted from her pay. As you see, the cam platform is providing her a service. She is NOT working for them. As you said the US won't care too much, but the Spanish revenue service will be happy.
Either way, passive income from the US has never been taxable at the source. All foreign affiliates with revenue from US companies are getting paid in full, always have. Then they pay taxes or not depending on where they reside.
If you find out otherwise most foreign GFYers would owe Millions of back taxes. ROFL.