Tax on income from the US

Hello all.

I have a question to those who have experience with getting income from the US and dealing with income tax therefore.

I am expecting to get a substantial amount from a US based payer. As part of the payment procedure, I have to sign form W-8BEN (https://www.irs.gov/instructions/iw8ben). Having read through some documentation, I reckon the payment is a subject to the US income tax (30%). However, as a high-skilled migrant (kennismigrant), apparently, I have the right not to pay income tax on foreign income as long as I have the 30% ruling. I wonder if I can somehow specify this circumstance as "special rates and conditions", line 10, part II of the form. One more time, to be clear: apparently, if do not do anything about it, the payer will withhold 30% of the amount payable as the US income tax, whereas, if I find a way to get the full amount and pay income tax here, I am eligible for zero tax from this payment.

Cheers.

Hi and welcome to the Forum.

My advice is that if it's a lot of money, then it's worth speaking to a tax-advisor who is experienced in US/NL tax matters - this Forum maintains a list of people who claim to be Tax Experts; this link will take you straight there.

Hope this helps.

Cynic
Expat Team

Sure thing, I'm considering tax advisers' service, thanks for the heads-up and the link! I just wanted to ask here as well: who knows, maybe my situation is not unique and someone would like to share their experience ;-)

Hi again.

LOL - I shared your experience, just didn't want to piss you off; I got hammered by Social taxes (27%) - these aren't part of the 30% tax deal; but mine was some time ago and had I spoken to an adviser earlier, I probably wouldn't have cashed in my shares; hence my advice - speak to a tax adviser.

Hope this helps.

Cynic
Expat Team

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