500px’s payment process combines your payment requests and tax form information in one seamless process. The process will lead you step by step and help you determine which tax form is right for you, and what information you need to submit.
If you still have questions after going through the process, please contact your legal and/or tax advisor. W-8BEN Form and Instructions for Individuals (non - U.S. Contributors) is below.
Are you filing for a local or U.S. tax return?
According to U.S. tax law, 500px must withhold a percentage of payments to citizens and entities in other countries depending on the tax treaties, and remit these withholdings to the government.
At the beginning of each year, 500px will use the information in your W-8BEN form to send you a document called a Form 1042-s. This document will outline the amount you were paid out by 500px and the amount of tax withheld in the previous year. If you are filing a Local Tax Return in your country of residence, you may be able to use the 1042-s to claim a foreign tax credit for the taxes withheld.
W-8BEN Form and Instructions for INDIVIDUALS (non-U.S. Contributors)
IRS Form W-8BEN Instructions (FOR INDIVIDUALS ONLY)
This form is filled out by foreign Marketplace Contributors (Contributors who are not U.S. persons for U.S. tax purposes). The Contributor is not required to provide a Tax ID. If a Tax ID is not provided, a tax of 30% is withheld from any payout.
Important: You must complete line 6 and Part II of the above form to reduce your withholding rate.
Part I – Identification of Beneficial Owner
Line 1 - Name of individual who is the beneficial owner
The beneficial owner is the person who is required to include the income on the tax return.
Line 2 - Country of citizenship
Enter the country of which the individual is a citizen. The country name should not be abbreviated. If you are a U.S. citizen, do not use this form; use form W-9 instead.
Line 3 - Permanent residence address (street, apartment or suite number, or rural route)
This address cannot be a P.O. Box or an in-care-of (c/o) address. The country name should not be abbreviated.
Line 4 - Mailing address
This box is only necessary if the Contributor's mailing address differs from your permanent address. The country name should not be abbreviated.
Line 5 - U.S. taxpayer identification number, if required
You may provide a Social Security Number (SSN), an Employer Identification Number (EIN), or an Individual Taxpayer Identification Number (ITIN) in this box. An ITIN is a Tax ID for an individual that does not have a SSN and is not eligible to get one.
Line 6 - Foreign tax identification number
If you are in a country with a tax treaty rate then you need to add a tax identification number to claim a treaty benefit. If you have a tax number from your own country (i.e. a “foreign tax identification number”), then add that into the W-8BEN form on Line 6. This is usually the number that you quote when you lodge your tax return or pay tax in your own country.
If you’re not sure what is the right number in your country, talk to a tax advisor or accountant. You may need to apply to your country’s government or tax authority. Alternately, you can apply and get a US number called an ITIN (Individual Taxpayer Identification Number).
If your country has a tax treaty with the US, there is a simple application process with the IRS that involves a form called the W-7. You find the instructions and form here. Assuming you’re not a US person, then you will most likely be completing the form as a “Non-resident alien required to get ITIN to claim tax treaty benefit”. However, if your country does not have a treaty with the US, then the tax identification number is not necessary as you are unable to claim a treaty benefit.
Line 7 - Reference number(s)
This line is used in particular circumstances. Please consult the IRS instructions (attached below) to see if it applies to you.
Line 8 - Date of birth
If you are providing this W8-BEN to document yourself with respect to an account at a U.S. office of a financial institution, please provide your date of birth in the MM-DD-YYYY format.
Part II (lines 9-10) – Claim of Tax Treaty Benefits (if applicable)
The Contributor may fill out this section if claiming the benefit of tax treaties requiring certain types of additional information. Contributors can reference the Tax Treaty Breakdown by Country document for more information. Please consult the IRS instructions (attached below) for instructions regarding royalties.
Line 9. I certify that the beneficial owner is a resident of Canada within the meaning of the income tax treaty between the United States and that country.
Line 10. Special rates and conditions (if applicable - see instructions): The beneficial owner is claiming the provisions of Article 12(1) of the treaty identified on line 9 above to claim a 0% rate of withholding on (specify type of income) Royalties.
Explain the reasons the beneficial owner meet the terms of the treaty article: Reduced withholding under article 12 paragraph 1 of the United States - Canada income tax convention.
The following guidelines may be helpful in filling out Part II of the W-8BEN, although we recommend consulting a tax professional to ensure you are making a valid claim.
To figure out which article to cite, you will first need to look up your country here, click the link and then find your country’s most recent tax treaty document. Within that document, you will find a section entitled "Business Profits" and an associated article number. For example, the Business Profits section of Australia’s tax treaty is "Article 7." Once you find the appropriate article for your country, note that in your form.
500px has determined that Marketplace payouts are related to “Royalties”
Making a valid treaty claim can reduce a Contributor’s withholding rate to 0%, Contributors can reference the Tax Treaty Breakdown by Country document for the exact rate to enter in this field.
Part III – Certification
The form must be signed and dated by the Contributor or an authorized signatory.
Note: These instructions are not to be considered legal advice. If you have questions, please consult your tax professional.
W-8BEN Instructions (July 2017) irs.gov PDF
**Expiration of Form W-8BEN. Generally, a Form W-8BEN will remain in effect for purposes of establishing foreign status for a period starting on the date the form is signed and ending on the last day of the third succeeding calendar year, unless a change in circumstances makes any information on the form incorrect. For example, a Form W-8BEN signed on September 30, 2015, remains valid through December 31, 2018.**