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Tax Liability Question | Reply
=> https://apps.topcoder.com/wiki/display/tc/How+to+Get+Paid+for+Competing <=

"Foreign persons performing services* outside of the U.S. are not subject to income tax withholding."
(1) Does that mean i have to pay tax (30% of my TopCoder earnings) to U.S. myself? OR I have zero tax liability on my TopCoder earnings.


"If you are a foreign person, non-resident alien or foreign national who is not performing services*, TopCoder will withhold taxes on the payment."
(2) Can i assume that all my earnings are "services performed outside U.S."?


Facts:
- I am from India and I've never been to any other countries in my lifetime. I have performed all the service while residing in India.
- I do not have any payment type mentioned in "Taxes Withheld for Members Completing Form W-8BEN" section.
- All my payment types are either "Contest Checkpoint Payment" OR "Contest Payment".
Re: Tax Liability Question (response to post by JaydevMehta) | Reply
Hi JaydevMehta,

Thanks for your question.

You will find more information about the tax forms in our Payment Policies and Instructions page. https://help.topcoder.com/hc/en-us/articles/217482038-Payment-Policies-and-Instructions
Re: Thread "Tax Liability Question" in category "Round Tables" has been updated by a.king (response to post by a.king) | Reply
Information provided in "Payment Policies and Instructions" page is almost
similar to "How to Get Paid for Competing" page.
It is not giving answer of my 1st question.
"I have signed W-8BEN form and i have received 100% prize money, but my
question is do i still need to 30% of that prize money as tax to U.S.?"

Also i would like to hear from other winners about this topic of paying tax
to U.S.

P.S. I am an adult and all i want to know is how others are handling this
situation. I will "not" take any reply as Advice/Answer, so anyone
replying, please do not worry about that.

If this thread does not get enough attention, should i post this thread in
general discussion forum?
Re: Thread (response to post by JaydevMehta) | Reply
Hi JaydevMehta,

Since you reside in India , you will have to pay tax to India. You don't have to pay tax to US.
Re: Thread (response to post by ananthhh) | Reply
If so, What i have to mention in the section 10 of W-8BEN Tax form?
Re: Thread (response to post by Thiygau GK) | Reply
No need to fill the section 10. It's not applicable. Your payments will be tracked by your pan card submitted to Payoneer / Paypal.

This income should be declared as a business income and should use either form ITR - 4 / 4s for income tax filing. It's much easier to use ITR 4S, the new scheme introduced by Indian Government.
Re: Thread (response to post by Sharathkumar92) | Reply
I think that is a good idea.
Re: Thread (response to post by Sharathkumar92) | Reply
Ignore pls.
Re: Tax Liability Question (response to post by JaydevMehta) | Reply
I think only to the country where you live? I really want to know too
Re: Tax Liability Question (response to post by Geena_Davis) | Reply
@Geena_Davis, yes that's right.
I received my full payment (full amount of prize money without 30% cut) via WU wire transfer,
And i will pay income-tax to India as per income-tax rules of India.

Thank you ananthhh and Sharathkumar92 for your replies.
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