Thursday, May 28, 2009

Shutterstock is Imposing 30% Withold on non-US contributors

Shutterstock went mad and started to ask non-US contributors to fill in with IRS in else they will be withold 30% of their income. Obtaining ITIN number costs around 600 USD and it takes at least four months. Not to mention that this is only IF your papers are correct.

Many submitters are determined to close their SS accounts as SS is the only agency imposing this tax withold.

Romanian contributors are even more humiliated: they have a 90 days delay on payments they get from SS, just because they are from Romania.

More, the treaty signed both by the Romanian Government and the US government clearly states that

Royalties derived by a resident of one of the Contracting States from sources within the other Contracting State shall not be taxed by the other Contracting State at a rate in excess of 10 percent of the gross amount of cultural royalties(art 12)

Similar is for other treaties.

Download Romania-USA treaty from HERE. Other countries treaties HERE

The fact is that the tax SS is reffering to is related only to sales made to US customers. SS is not providing a differentiated.

Submitters already opened an ONLINE PETITION.

My feeling is that SS has a big financial problem and is trying to sort it out on the back of submitters. They might be on the verge of bankruptcy or IRS caught them with something bad?

I just have been banned from posting on SS forums!!! Perhaps because I signed the petition.

I found out later that even private messages sent between SS members are censored!!!

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