Help understanding the US Tax forms as an Australian sole trader

I know this question has been asked here and there but nothing I can find is helpful enough. The ABN/GST side of things is done and was incredibly straight forward and easy, all done online, very quickly.


The US side of it asks for "Foreign tax identifying number, if any" which is optional, but apparently this is to do with the tax treaty so you aren't double taxed, I am reading conflicting things online, some people say Apple withhold tax and that is then credited to the australian tax, some people say apple don't withhold tax and you will need to do both US and AU taxes. So what's the story, and what do I NEED to do? I don't want to try and avoid taxes, I don't want to try find a loop hole, what is legally required of me and then based on that what is best for an australian developer publishing to the US store?


One "guide" I found online said I need an EIN and then Apple withholds tax and its then credited to the australian tax so you only worry about australian tax, but when trying to apply for an EIN which is meant to take "10 minutes" I was being told an SSN or ITIN is required, and following links an ITIN has to be an application which is mailed in, being in Australia this is likely going to take weeks or even months to be processed completely, am I able to publish paid apps before this is done, as my australian tax side of things is submitted, will I only be able to publish paid apps for australia?


I know it's a lot of questions but I really don't want to be bitten down the track. A final question, why is there only tax submissions for Australia, US, Canada, how does my paid app then sell in the UK or Mexico etc?

Hello,


Wondering how you went with this ?


I see you got no replies.


I am in the same situation as you were...


How did you go?


I'm confused.

I have the same set of questions. I find this to be very confusing.

If someone who understands this process sees this, could you please explain it in plain English?

Which forms do Australian sole traders need to fill out and what are the ongoing obligations?

Hello, I am sole trader in UK, I believe the right option is "Disregarded Entity".

A disregarded entity is a business that is not seen as a separate entity from the business owner for tax purposes. Rather than the IRS taxing the business, the income of the business is passed through to the owner’s income tax return. In this way, the business and the owner are considered one entity.

https://www.nav.com/blog/what-is-a-disregarded-entity-635010/

If a business entity (other than a per se foreign corporation) has only one owner, it is classified as either a corporation or a disregarded entity. If the single owner does not have limited liability, the non-U.S. entity is disregarded as an entity separate from its owner and the single owner should complete the applicable U.S. tax form in its own name. 

https://www.citibank.com/icg/sa/emea/romania/romanian/assets/docs/W-8BEN-E_Completing_Guide_February_20150708.pdf

Good luck, I hope this is helpful.

Thanks for sharing, that is a little bit helpful. I think my main issue is trying to understand why a non US Citizen or resident would need to worry about US Tax issues. This is a bit of a surprise to me.

Does this mean for tax purposes Apple itself is treated as the seller, and Apple sells apps in different countries as a US entity? This doesnt explain then why Apple would be collecting (for example) Australian GST on sales, unless its collecting GST on the commission Apple Takes rather than the entire cost of each sale? IS that what happens?

G'day mate!

I'm also confused about the US tax forms for an Australian-based app. Were you able to solve this?

I'm looking for someone who understands this and can advise me with my app. Please let me know if you're interested, or know of an accountant who could be!

Has anyone worked this out. I am in the same boat.

Help understanding the US Tax forms as an Australian sole trader
 
 
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