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Project Guru
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These IRS forms are always confusing!

 

There's a freelance web developer in Tunisia who I hire sometimes. I also sometimes hire an assistant who lives in Hungary. They are not US citizens nor legal aliens. My questions are:

 

1. Do I still need to get them to fill out and sign form W-8BEN?

 

2. Judging by the information they ask in form W-8BEN, it looks like there's a treaty between both these countries and the US for tax collection purposes. Does this mean that once they fill out the form, I have to withhold 30% from their payment? Or do they (the freelancers) have to start filing/paying income taxes to the US?

 

3. The form asks for the Beneficial Owner's Social Security number, an ITIN, and a Foreign Tax ID number. What if a freelancer I hire happens to have a SS number but does NOT live in the US and all work performed was done OUTSIDE of the US?. 

 

Sorry for all the questions. I'm sure others have similar situations.

 

Thanks!

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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