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ITALIAN submitters: TAX TUTORIAL


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Ok guys I'm italian and I've spent a night to find out how italians can manage this situation and how they can provide all the paperwork needed to get this ITIN number and fill the W8 form.

 

I'm gonna give instructions in italian, I know that it's not accepted writing into another language but this is way too important for us, since we are going to have a 25% less in our taxation:

 

"Come si fa ad ottenere il numero ITIN?"

 

Presso l' Ambasciata Americana:

Per prima cosa si deve andare al Consolato degli Stati Uniti d'America muniti di un passaporto valido e di una fotocopia della prima pagina, quella con la foto e il numero di passaporto, scadenza ecc., per ottenere l'autenticazione notarile della copia.

L'ufficio è aperto dalle 8:30 alle 12:00 solo il martedì e il giovedì. Il costo è di 30US$, circa 24 Euro.

questi sono i dati per chi vorrà contattare l'ambasciata americana a ROma

Vincent P. GAMBINO

Tel: 063751-1192 Fax: 063741-1420

Address: Via Asiago 1, 00195 Rome.

E-mail: VPGambino@tiscalinet.it

 

OPPURE

 

Tramite Comune e Prefettura:

1) COPIA CONFORME DEL PASSAPORTO in COMUNE all'ANAGRAFE, con marche da bollo da 14,62 EURO per pagina. Ovviamente servirà FOTOCOPIA solo della copertina e delle pagine dove si attesta che siamo ITALIANI con foto e dati anagrafici e timbri della questura. Ovviamente bisogna portare con se' anche l'ORIGINALE.

2) APOSTILLA (obbligatoria) si va a farla in PREFETTURA nell'UFFICIO LEGALIZZAZIONI con marca da bollo da 14,62 EURO. L'Apostilla che si trova sul sito del governo USA non è da scaricare, bensì è solo una copia del TIMBRO detto APOSTILLA che tale ufficio della PREFETTURA appone per legalizzare la firma dell'addetto del COMUNE che ha autenticato il nostro PASSAPORTO.

 

Poi si compila il modulo W-7, si allega la copia conforme, la lettera di Shutterstock e una lettera accompagnatoria in Inglese specificando il motivo per cui si richiede l'ITIN

 

Una volta ottenuta la copia autenticata del passaporto, occorre spedirla tramite corriere o almeno posta raccomandata all'agenzia delle entrate americana, la IRS al seguente indirizzo:

 

Internal Revenue Service

Austin Service Center

ITIN Operation

P.O. Box 149342

Austin, TX 78714-9342

 

Insieme alla copia del passaporto vanno inviati i seguenti documenti:

- modulo W-7 (scaricabile dal sito http://www.irs.gov/individuals/article/0,,id=96287,00.html con spiegazioni dettagliate)

Ricordarsi di spuntare con una "x" le caselle A e H nella parte alta del modulo. Accanto a H scrivere "Exception 1" e indicare Italy come "treaty country" e "treaty article" numero 12.

- lettera, ovviamente in inglese, con la motivazione della richiesta

- lettera d'incarico da parte del cliente americano

 

La risposta arrivera' via posta in 4-6 settimane.

 

Dopo la ricevuta del codice ITIN:

Una volta ricevuto il numero ITIN, andrà compilato il modulo W-8BEN (PDF scaricabile da http://www.irs.gov/pub/irs-pdf/fw8ben.pdf)

Nella parte II, articolo n.9 occorre spuntare la casella "A" e scrivere "Italy" sulla riga. Nel caso si stia collaborando con un editore che corrispondera' nel tempo delle royalty per l'utilizzo delle opere, al n.10 scrivere che tu stai "claiming provisions of Article 12 of the treaty on line 9A to claim a 5% rate (o altra percentuale concordata e indicata sul contratto) of witholding on royalties".

 

This is the letter sent by shutterstock to all the photographer, anyway not everybody got it so I'm posting a template of it:

 

ss_email_footer.jpg

 

Username: your shutterstock username

Your name and surname

Home Address

 

City, State

CAP

 

 

Dear your name,

 

This letter is to advise you of potential changes in the amount of tax that may be withheld from your Shutterstock earnings.

 

In reviewing our files we discovered that we do not have a record of having received any US withholding tax certificates from you. Based upon the information in our files it appears that you may be a resident of Italy, which has an income tax treaty with the United States that provides for a reduced rate of withholding tax on royalties.

 

If you are a resident of Italy and qualify for benefits under the US/Italy income tax treaty, you will need to complete a U.S. Internal Revenue Service (IRS) Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding. We are in the process of installing an online version of Form W-8BEN on our website; however, in order to complete Form W-8BEN you must have a U.S. Individual Taxpayer Identification Number (ITIN). If you do not currently have an ITIN, you can obtain one by filing a Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. This process takes only 4-6 weeks and could reduce your withholding taxes significantly.

 

Please complete the most recent version of Form W-7 by checking Box a (Nonresident alien required to obtain ITIN to claim tax treaty benefits), providing the information requested in Lines 1 through 6, and signing the form where indicated. You must provide certified or notarized copies of documents, such as your passport, that substantiate the information contained on Form W-7.

 

After completing the W-7 form and providing the required documentation as described above, you can apply for an ITIN in any of three ways:

 

1. by mail through the IRS, with details available here:

 

http://www.irs.gov/individuals/article/0,,id=96287,00.html

 

2. using the services of an IRS-authorized Acceptance Agent in your country

 

3. by visiting an IRS Taxpayer Assistance Center in Frankfurt, London, or Paris, where they will provide in-person help with ITIN applications on a walk-in or appointment basis.

 

http://www.irs.gov/localcontacts/article/0,,id=101292,00.html

 

Please note that without an ITIN and a completed IRS Form W-8BEN on file at Shutterstock, we will be required to deduct a 30% US withholding tax from royalties payable to you.

 

We will send you a separate email when our online Form W-8BEN is ready for use. Your early June royalty payment will not be subject to withholdings but subsequent royalty payments may be.

 

If you have questions on tax withholding from your Shutterstock earnings, please visit our submitter forum.

 

 

 

Thank you for your cooperation and attention to this matter.

 

 

 

Best Regards,

 

Shutterstock Images LLC

 

ss_email_footer.jpg

 

Shutterstock Images LLC |=

60

Broad Street, 30th Floor | New York, NY 10004 | USA

 

From now on the thread can go on in English.

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Hi, getting an ITIN is the first step so I'm glad you started this thread and thanks for posting this useful information.

 

I have no reason to doubt about this since Vincent P. Gambino is the official IRS Acceptance Agent in Rome.

 

But from http://www.irs.gov/businesses/small/international/article/0,,id=96690,00.html:

 

"The IRS has permanent staff available which are able to help process Forms W-7, IRS Application Number (PDF) at the following U.S. embassies overseas: Beijing, Frankfurt, London, and Paris. [...] In addition, there are public accounting firms overseas in certain countries which are Authorized Acceptance Agents for ITIN numbers."

 

So what does it mean "Per prima cosa si deve andare al Consolato degli Stati Uniti d'America"? Which one?

QUESTION 1: Are the other consolati in other Italian towns - such as Milan- enabled to process W-7 forms or just in Rome?

 

In case the only Authorized Acceptance Agent in Italy is in Rome, and I live in Turin, and for me (as many others in northern italy) it is cheaper and less time consuming to go to London with a cheap flight than to Rome,

QUESTION 2: can the official IRS centre in London certify Italian documents as well?

 

QUESTION 3: why Article 14? I thought it was 12 (Royalties)

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So what does it mean "Per prima cosa si deve andare al Consolato degli Stati Uniti d'America"? Which one?

QUESTION 1: Are the other consolati in other Italian towns - such as Milan- enabled to process W-7 forms or just in Rome?

 

In case the only Authorized Acceptance Agent in Italy is in Rome, and I live in Turin, and for me (as many others in northern italy) it is cheaper and less time consuming to go to London with a cheap flight than to Rome,

QUESTION 2: can the official IRS centre in London certify Italian documents as well?

 

QUESTION 3: why Article 14? I thought it was 12 (Royalties)

 

You have to go to the Rome US embassy because there is where Mr Gambino works, other Embassies do not have employers working for IRS.

 

I do not think that going aboad is a valid solution for obvious bureaucracy issues, you need a US embassy in Italy since they are going to testify that you are Italian.

 

I must be mistaken about the article number, I apoligize: can you post a reference link where you got this info?

 

Grazie

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I live in Italy and have a residence here (carta di soggiorno), but my passport is of other country (Belarus). Will Mr. Gambino treat my passport as well? Or probably carta di soggiorno? Will I be taxed as Italian resident?

 

Do you have an italian passport? I guess no since you have a carta di soggiorno. No I think that you have to go to one of your homecountry embassy to get your document validated as Belarus citizen...

Anyway it depends on what citizenship you have right now

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thanks a lot for the useful infos.

 

So the article 14 change to 12 in the first post! good?

 

 

for the passport I have an expired passport (ten years I think)

 

Can I use other documents instead?

 

on this link: http://www.irs.gov/individuals/article/0,,id=96287,00.html#acceptable

 

are written:

IRS will accept certified or notarized copies of a combination (two or more) of the following documents, in lieu of a passport:

 

So I think It will be ok.

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thanks a lot for the useful infos.

 

So the article 14 change to 12 in the first post! good?

 

 

for the passport I have an expired passport (ten years I think)

 

Can I use other documents instead?

 

on this link: http://www.irs.gov/individuals/article/0,,id=96287,00.html#acceptable

 

are written:

IRS will accept certified or notarized copies of a combination (two or more) of the following documents, in lieu of a passport:

 

So I think It will be ok.

 

There should be no problems about other documents, you referred to the right site so you can be pretty sure of that.

I'm trying to find out if the article is the 12 or 14.

About the exception number I think the #2 is right since is for "treaty benefits on taxes"

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I live in Italy and have a residence here (carta di soggiorno), but my passport is of other country (Belarus). Will Mr. Gambino treat my passport as well? Or probably carta di soggiorno? Will I be taxed as Italian resident?

 

Do you have an italian passport? I guess no since you have a carta di soggiorno. No I think that you have to go to one of your homecountry embassy to get your document validated as Belarus citizen...

Anyway it depends on what citizenship you have right now

 

Shit. Then taxation will cost too much for me. Thanks

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I must be mistaken about the article number, I apoligize: can you post a reference link where you got this info?

Grazie

I downloaded the "United States-Italy Income and Capital Tax Convention" this morning, now i'm trying to find back the link and will post as soon as i find

 

Perfect Claudio, let's keep in touch here ok?

Let us know what you come up with.

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Do you have an italian passport? I guess no since you have a carta di soggiorno. No I think that you have to go to one of your homecountry embassy to get your document validated as Belarus citizen...

Anyway it depends on what citizenship you have right now

So if I'm Italian but living in France I must go to Rome, Italy? OMG... Honestly I don't earn so much on SS to do it.

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Do you have an italian passport? I guess no since you have a carta di soggiorno. No I think that you have to go to one of your homecountry embassy to get your document validated as Belarus citizen...

Anyway it depends on what citizenship you have right now

So if I'm Italian but living in France I must go to Rome, Italy? OMG... Honestly I don't earn so much on SS to do it.

 

I know... probably I'm wrong. You can call the US embassy in France that has an IRS clerk and ask.

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The treaty is concerned only with taxes. Section 2 is for 'earned' income such as wages, salary etc. Section 1 is for 'passive' income such as royalties and section 1d specifically refers to royalties. Therefore section 1d applies.

 

So I'm going to change the first post

 

Now I have to find out which numer is 12 or 14

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I must be mistaken about the article number, I apoligize: can you post a reference link where you got this info?

Grazie

I downloaded the "United States-Italy Income and Capital Tax Convention" this morning, now i'm trying to find back the link and will post as soon as i find

 

Perfect Claudio, let's keep in touch here ok?

Let us know what you come up with.

 

The Italian version (1999) is here - follow the link "La legge di ratifica" from this article:

http://www.ilsole24ore.com/art/SoleOnLine4/Norme%20e%20Tributi/2009/03/accordo-italia-usa.shtml?uuid=7b7457ee-1566-11de-bb0f-b9776b324ea8&DocRulesView=Libero#

 

The English version (1984-maybe not updated but very similar to the 1999 Italian one) is here on the official IRS site:

http://www.irs.gov/pub/irs-trty/italy.pdf

 

thanks again for starting this thread and we will keep in touch here; meanwhile I wrote to the us embassy in london and i will let you know what they'll answer (about certifying italian documents)

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I didn't understand one thing.

 

Of the money taken by SS I pay italian taxes but now after the US taxes what should i do? a difference or whatever?

 

If yes, does the US gov will ship to me a receipt of taxes payed to them to reduce my italian taxes?

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Hi,

 

I'm Italian too.

The number is 12 (not 14) . I'm 99% sure of this! :-D

 

I've got an answer:

What should we write in those 2 letters? :

"- lettera, ovviamente in inglese, con la motivazione della richiesta

- lettera d'incarico da parte del cliente americano

"

 

Can we post here a fac-simile of those 2 letter?

 

Many Thanks!

 

DAvid

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ss_email_footer.jpg

 

Username: your shutterstock username

Your name and surname

Home Address

 

City, State

CAP

 

 

Dear your name,

 

This letter is to advise you of potential changes in the amount of tax that may be withheld from your Shutterstock earnings.

 

In reviewing our files we discovered that we do not have a record of having received any US withholding tax certificates from you. Based upon the information in our files it appears that you may be a resident of Italy, which has an income tax treaty with the United States that provides for a reduced rate of withholding tax on royalties.

 

If you are a resident of Italy and qualify for benefits under the US/Italy income tax treaty, you will need to complete a U.S. Internal Revenue Service (IRS) Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding. We are in the process of installing an online version of Form W-8BEN on our website; however, in order to complete Form W-8BEN you must have a U.S. Individual Taxpayer Identification Number (ITIN). If you do not currently have an ITIN, you can obtain one by filing a Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. This process takes only 4-6 weeks and could reduce your withholding taxes significantly.

 

Please complete the most recent version of Form W-7 by checking Box a (Nonresident alien required to obtain ITIN to claim tax treaty benefits), providing the information requested in Lines 1 through 6, and signing the form where indicated. You must provide certified or notarized copies of documents, such as your passport, that substantiate the information contained on Form W-7.

 

After completing the W-7 form and providing the required documentation as described above, you can apply for an ITIN in any of three ways:

 

1. by mail through the IRS, with details available here:

 

http://www.irs.gov/individuals/article/0,,id=96287,00.html

 

2. using the services of an IRS-authorized Acceptance Agent in your country

 

3. by visiting an IRS Taxpayer Assistance Center in Frankfurt, London, or Paris, where they will provide in-person help with ITIN applications on a walk-in or appointment basis.

 

http://www.irs.gov/localcontacts/article/0,,id=101292,00.html

 

Please note that without an ITIN and a completed IRS Form W-8BEN on file at Shutterstock, we will be required to deduct a 30% US withholding tax from royalties payable to you.

 

We will send you a separate email when our online Form W-8BEN is ready for use. Your early June royalty payment will not be subject to withholdings but subsequent royalty payments may be.

 

If you have questions on tax withholding from your Shutterstock earnings, please visit our submitter forum.

 

 

 

Thank you for your cooperation and attention to this matter.

 

 

 

Best Regards,

 

Shutterstock Images LLC

 

ss_email_footer.jpg

 

Shutterstock Images LLC |=

60

Broad Street, 30th Floor | New York, NY 10004 | USA

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G2STUDIO, THANKS A LOT FOR YOUR EFFORTS.

In the meanwhile I red something about getting the document validated on IRS site. Since there is an agreement about USA and many other countries about double taxation, alien citizens need ITIN to get W-8EBN form and need to validate the document(s) to get ITIN. On the governament site you can read it is possible to do everything by mail without going to Rome but since you should send the ORIGINAL DOCUMENT to get validation (and this is simply FOOL) thanks to the agreement between USA and Italy you can send a copy of the PASSPORT or a of 2 other documents (driver licence, ID, etc) together with something called "APOSTILLA" that needs to be filled and stamped by an italian authority. Everything can be found following the link provided in the original mail sent by SS (the new nazi association)

 

If so this is wonderful news, but how can my documents can get validated? I mean by whom?

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I didn't understand one thing.

 

Of the money taken by SS I pay italian taxes but now after the US taxes what should i do? a difference or whatever?

 

If yes, does the US gov will ship to me a receipt of taxes payed to them to reduce my italian taxes?

 

I do not pay anything, anyway there's a way to get your US tax deducted from the italian ones... go visit the official thread posted by admins with the FAQ: I read something about it there

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FOLLOW THE LINK

http://www.irs.gov/individuals/article/0,,id=96287,00.html

 

AND CLICK ON "How can I obtain an ITIN from abroad?" in section HELP AND INFORMATION.

You'll find out that thanks to the HAGUE CONVENTION (and Italy is part of that convention) you can have your passport or any other of the 13 valid documents validated by the same authority who issued the original one, copies must be accompanied by an "APOSTILLA". The APOSTILLA can be downloaded from a link provided in tha same page. The one I found myself is in English and I don't know if it exists in Italian too, so I think this could be a problem.... imagine to ask for it to the middle age lady working in the Anagrafe of your Comune.... Maybe it could be simplier in Questura. Anyway the "APOSTILLA must be attached to copies when sent by registered mail to IRS in the USA.

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FOLLOW THE LINK

http://www.irs.gov/individuals/article/0,,id=96287,00.html

 

AND CLICK ON "How can I obtain an ITIN from abroad?" in section HELP AND INFORMATION.

You'll find out that thanks to the HAGUE CONVENTION (and Italy is part of that convention) you can have your passport or any other of the 13 valid documents validated by the same authority who issued the original one, copies must be accompanied by an "APOSTILLA". The APOSTILLA can be downloaded from a link provided in tha same page. The one I found myself is in English and I don't know if it exists in Italian too, so I think this could be a problem.... imagine to ask for it to the middle age lady working in the Anagrafe of your Comune.... Maybe it could be simplier in Questura. Anyway the "APOSTILLA must be attached to copies when sent by registered mail to IRS in the USA.

 

I'll go read it, it sounds great. I can only imagine what can happen here in a Comune's office in Naples OMG!!! But it's worth trying that.

Thank you so much!

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Ok the embassy issue and the Apostilla can be avoided just going to the Questura or Police dep. of your city and ask for a certified copy of your passport, that will do according to what the IRS says.

 

then you put all together: certified copy of the passport, letter from shutterstock, w-7 filled properly and sen everything via Posta Raccomandata to the IRS agency address given in the Shutterstock letter.

 

This should put the word end to this odyssey

 

Then just wait for the ITIN number to come via mail and you can finally fill the W-8 form.

 

Wheeeew

 

Ora se permettete stacco che mi sono bruciato il cervello.

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Ok the embassy issue and the Apostilla can be avoided just going to the Questura or Police dep. of your city and ask for a certified copy of your passport, that will do according to what the IRS says.

 

then you put all together: certified copy of the passport, letter from shutterstock, w-7 filled properly and sen everything via Posta Raccomandata to the IRS agency address given in the Shutterstock letter.

 

This should put the word end to this odyssey

 

Then just wait for the ITIN number to come via mail and you can finally fill the W-8 form.

 

Wheeeew

 

Ora se permettete stacco che mi sono bruciato il cervello.

 

 

To obtain the apostilla(postilla) must turn to provincial Prefecture(prefettura)

 

thanks for info

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