Action Required: International Designer Payment Information
Posted: Friday, June 12, 2015 4:25:18 PM
Hello Designers and Associates,

We have a very important announcement today which affects all non-US resident Designers and Associates. In our efforts to fully comply with updated IRS tax guidelines and forms, and to ensure that all payments are processed properly, we have made some updates to our Payment Settings requirements for all of our international Designers and Associates.

There are a few steps to this process that you may need to take to fully and correctly complete your updated W-8 form for Zazzle earnings, and maximize your Zazzle payments.

In order to maximize your net payout we ask that you please take the appropriate steps to update your W-8 form as soon as possible to ensure your payment is not reduced by the IRS’s default withholding rate of thirty percent (30%), if you qualify for a lower rate.

As a non-US Zazzle Designer or Associate, the IRS imposes a withholding on your payments. The default rate is 30% withholding. Zazzle Designers or Associates who are residents of certain countries with which the USA has a tax treaty may qualify for a lower withholding rate – these countries are listed below. However, there are strict documentation requirements to qualify for these reduced withholding rates.

If you are a resident of one of these listed countries and wish to maximize your net payout, we ask that you first register with the IRS for an Individual Tax Identification Number (“ITIN”) as soon as possible, if you do not already have one. Acquiring this ITIN will allow you to (i) fully complete the applicable W-8 form, (ii) potentially avoid the default IRS tax withholdings from your Zazzle earnings, and (iii) file a tax return with the IRS for possible refunds of any withholdings.

To properly comply with the minimum requirements for payment, when completing the applicable W-8 form as required by the IRS, please ensure the following:

• The name that you enter on the W-8 form exactly matches the name registered as the payee name for your Zazzle account;
• The address that you enter on the W-8 form exactly matches the address registered as the payee address for your Zazzle account; and
• Your signature and the date are included on the form.

If your W-8 form is properly filled out with the minimum required information as noted above, we will be able to submit payments for your Zazzle earnings as normal. However, the default IRS tax withholdings of 30% will be applied to your earnings if any information is missing on the form, which includes a missing ITIN and any other information required in the form.

We’ve included some questions and answers below to help you understand what actions are required, and what steps you may need to take based on what is best for you with regard to your Zazzle earnings:

How do I get the new W-8 form?

If you are doing business as an individual, you can download this form on your Zazzle Payment Settings page. If you are doing business as an entity, please refer to the following link for guidance on which W-8 form to fill out: http://www.irs.gov/pub/irs-pdf/iw8.pdf. After you have completed this updated form, you can email a scanned copy or fax it back to us using the contact information on your Payment Settings page.

I already have an ITIN. What should I do?

If you already have an ITIN, please make sure the applicable W-8 form has been completed entirely and returned to us as soon as possible. Payments will be subject to the default IRS withholding rate of thirty percent (30%) until your complete and correct the current W-8 form (which requires your ITIN information) is processed. After processing, any withholdings will be dictated by your country of residence’s individual tax treaty. Be sure to include this withholding rate on your form, as well as all of the required information related to the appropriate tax treaty for your country, etc. You may be eligible for a refund of withholdings above the rate dictated by your country’s tax treaty, which you can obtain by filing a tax return at the end of the year using your ITIN.

I don’t have an ITIN and would like one. What steps should I take to register an ITIN with the IRS?

As Zazzle is unable to offer tax advice, including the specific IRS requirements for obtaining an ITIN, you should contact a tax professional and/or the IRS directly for explicit directions, forms and requirements. A good place to start is this IRS webpage: https://www.irs.gov/individuals/international-taxpayers/general-itin-information. As soon as you have received your ITIN, please fill out the current W-8 form with all of the appropriate information, including all information related to your country of residence’s tax treaty with the USA, and return it to us as soon as possible. Payments will be subject to the default IRS withholding rate of thirty percent (30%) until the time that your complete and correct updated W-8 form with ITIN information is processed. After processing, the amounts withheld will be dictated by your country’s individual tax treaty. Be sure to include this withholding rate on your form, as well as all of the required information in the applicable W-8 BEN form. You may be eligible for a refund of withholdings above the rate dictated by your country’s tax treaty, which you can obtain by filing a tax return at the end of the year using your ITIN.

Will I still receive my Zazzle payments if I don’t register for an ITIN?

Should you choose not to register for an ITIN, and the required information of name, address, country, signature and date are all properly completed on your W-8 form, you can still submit an updated version of your W-8 form to us and receive payments. Accounts which do not include an ITIN on their W-8 form or are missing other required information will be subject to the default IRS withholdings of thirty percent (30%) of Zazzle earnings.

What should I do if I choose not to register for an ITIN?

If you have already submitted a correct W-8 form to us that has been accepted/processed, and you do not wish to register for an ITIN with the IRS, you are still eligible for Zazzle payments. These payments will be subject to the default IRS withholding of 30% of Zazzle earnings.

If the default IRS withholdings were applied to my Zazzle earnings previously, but I now have an ITIN which makes me eligible for a lower withholding rate, can those withholdings be returned to me?

If you have obtained an ITIN, you have the ability to file a tax return with the IRS at the end of each calendar year. Filing such a return may entitle you to a refund of some or all of the IRS withholdings from your Zazzle earnings. Please contact the IRS for more details.


List of countries with which the USA has royalty-relevant tax treaties:


Armenia
Australia
Austria
Azerbaijan
Bangladesh
Barbados
Belarus
Belgium
Bulgaria
Canada
China
Cyprus
Czech Republic
Denmark
Egypt
England
Estonia
Finland
France
Great Britain
Germany
Gibraltar
Greece
Guadeloupe
Guam
Hungary
Iceland
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Kazakhstan
Korea, Republic of
Kyrgyzstan
Latvia
Lithuania
Luxembourg
Malta
Mexico
Moldova
Morocco
Netherlands
New Caledonia
New Zealand
Northern Ireland
Norway
Pakistan
Philippines
Poland
Portugal
Puerto Rico
Reunion
Romania
Russia
Scotland
Slovakia
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Thailand
Trinidad and Tobago
Tunisia
Turkey
Ukraine
United Kingdom
United States
Venezuela
Virgin Islands, U.K.
Wales
Northern Mariana Islands


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