Any Canadians with fotolia? - DPChallenge Forums

Canon EF 24-105mm f/4.0L IS

08/10/2010 11:41:55 AM · #1

Got this in my inbox this morning:

Dear Contributor,

We are happy to inform you that one of your files has been sold.

Selling creative content licenses is an economic activity. Income derived from these sales may be subject to U.S. IRS (Internal Revenue Service) Withholding Tax.

It is important that our contributors, and Fotolia, comply with tax law. So, we invite you to visit the Tax Center and to review the information listed on that page.

Until you complete this procedure and the appropriate form is validated, your Fotolia income will be subject to automatic withholding at the appropriate tax rate. By submitting the applicable form, you may benefit from a reduced or zero withholding rate on your income.

We suggest you complete this procedure as soon as possible.

Best Regards,

Fotolia Team

Huh? I've had images on Fotolia for over 5 years (though long ago quit uploading images) and have never been told I may have to pay tax on an image that will probably bring me, ooh, all of .33 or maybe a whole USD! I have made basically no $$, just been paid in so-called credits.

And according to the tax table they refer to, there is already a zero witholding rate for Canada still images (10% for video).

So should I just humour them and fill out the silly form, or let the bad ol' IRS seize all of maybe what, a grand total of $10?!

jeger

Canon EOS-5D

08/10/2010 11:46:19 AM · #2

A quick web search tells me their minimum payout is $50. So, if you think you can eventually hit $50, then it's worth filling out the forms, otherwise...

08/10/2010 11:50:58 AM · #3

I hear where you're coming from, but thus far I have had $0.00 in actual income from fotolia. And this has been over 5 years!!!

Still might fill out the forms and send em in to the IRS just for the hell of it. But how am I going to declare income when so far it's only in fotolia credits?!

Olympus OM-D E-M1 Mark III

08/11/2010 10:09:03 AM · #4

morning bump

colorcarnival

Olympus 45mm f1.8 M.Zuiko Digital Micro Four Thirds

08/11/2010 10:15:04 AM · #5

I didn't read thru all of this thread at Microstockgroup.com , but it might give you some help. I'd consider doing a search there or even posting your question. I find that there's a lot of good info at that site.

one2one

Olympus E-5

Olympus 7-14mm f/4.0 Zuiko Digital Zoom

08/11/2010 10:46:36 AM · #6

I wouldn't bother with it.

I didn't fill out the form Snaffles and I'm not uploading to them anymore. I figure all the US based stock sites will follow Fotolia and require us OVERTAXED Canucks to pay up.

35 cents minus US and CDN taxes = not worth my effort.

I'm lost now. Is Fotolia saying we as Canadians don't pay US taxes because of a treaty between our countries?

leaf

Canon EOS-5D Mark II

Canon EF 24-70mm f/2.8L USM

08/19/2010 11:50:59 AM · #7

Originally posted by snaffles:

Well you wouldn't declare the income until it actually came to YOU as income. Credits on fotolia doesn't count. Also, if you are only making less than $50 in 5 years I think you could safely count it as a hobby :)

That said, it isn't that much work to fill in the forms. If you fill them in Fotolia will take 0% US tax on your sales, if you DON'T fill them in I believe they'll take 30%.

Strikeslip

Canon EOS-5D

Canon EF 100-400mm f/4.5-5.6L IS

08/19/2010 11:58:51 AM · #8

Have your accountant take care of it for you.

Accounting is painful and horrid. I'd rather have my manhood crushed in a vice than deal with it.

But for the amount of money you're talking about, I doubt it's an issue.

Canon EF 70-300mm f/4.5-5.6 DO IS USM

08/19/2010 12:28:18 PM · #9

Originally posted by Jac:

Yeah, my thoughts too Jac. I may as well close down my fotolia account as it's such a duffer anyway.

Thanks all for your input!

cpanaioti

Canon EOS-40D

08/19/2010 01:21:00 PM · #10

Originally posted by snaffles:

Originally posted by Jac:
I wouldn't bother with it.

I didn't fill out the form Snaffles and I'm not uploading to them anymore. I figure all the US based stock sites will follow Fotolia and require us OVERTAXED Canucks to pay up.

35 cents minus US and CDN taxes = not worth my effort.

I'm lost now. Is Fotolia saying we as Canadians don't pay US taxes because of a treaty between our countries?

Yeah, my thoughts too Jac. I may as well close down my fotolia account as it's such a duffer anyway.

Thanks all for your input!

There is a tax treaty between Canada and the US. Income is only taxed in one country, not both, however income from all sources is required to be reported on your Canadian return. So if fotolia deducts US tax from their payout to you, when you fill in your Canadian return you calculate a foreign tax credit.

If they don't deduct tax then you just pay the Canadian tax, no foreign tax credit calc needed.

Definitely not worth it on small amounts.