Sunday, November 10, 2013

LifeVantage explains tax issues in the Philippines



Posted by Heidi Lopez
LifeVantage Independent Distributor:  Australia, Canada, Hong Kong, Mexico, Japan, Philippines, USA
LifeVantage Enroller ID # 887146
http://www.mylifevantage.com/HeidiLopez 
Email:  Heidi_Lopez@comcast.net



TAX

Will there be a charge for taxes, separate from the price of the product, during Pre-Enrollment?
Yes, orders shipped to the Philippines are sales of US products made by a US entity and are therefore subject to certain US tax laws, as well as any taxes imposed upon importation of the product into the Philippines such as value added tax and customs duties. This tax charge is equivalent to approximately 19% of the price of the product including shipping.

I am not a US Citizen, a Permanent Resident of the US, or a legal entity registered with the IRS (e.g. Corporation, Partnership, LLC, etc.), nor do I plan to conduct my LifeVantage business in the US. Do I still need to complete and electronically sign the Substitute Form W-8BEN?
Yes, the IRS requires US companies making payments to non-US residents to gather certain information to determine whether US income tax withholdings apply to the payments.  For services rendered by a non-US resident outside the US, this information is generally ultimately collected on Form W-8BEN. For services rendered by a non-US resident inside the US, this information is generally collected on Forms W-8ECI or 8233.

For more information on US withholding requirements on payments to non-residents, please visit:
http://www.irs.gov/Individuals/International-Taxpayers/NRA-Withholding

TAX

I am a US Citizen or Permanent Resident of the US and my LifeVantage Distributorship is in my name.  Do I need to complete and electronically sign the Substitute Form W-8BEN?
No, please contact Distributor support and complete Form W-9 instead.

I am not a US Citizen or Permanent Resident of the US, but I reside in the US and wish to sign up under the Philippines, and my LifeVantage Distributorship is in my name.  Do I need to complete and electronically sign the Substitute Form W-8BEN?
It depends. If you are an individual Distributorship you need to complete Form 8233 for non-US residents performing services in the US. If you are signing up under a legal entity (e.g. corporation, partnership, etc.) you should complete either Form W-8BEN or W-8ECI.      Please contact Distributor support for more information.

TAX

I require more information in order to fill out Form W-8BEN.  What resources are available to me?
Please refer to the Form W-8BEN Instructions on the IRS website or the following attachment:
http://www.irs.gov/pub/irs-pdf/iw8ben.pdf

What will happen if I don’ t complete the substitute  Form  W-8BEN?

The IRS requires LifeVantage to withhold 30% of Distributor earnings and remit them to the IRS in instances where a properly completed Form W-8BEN has not been provided.

Heidi Lopez's LifeVantage website:
http://www.mylifevantage.com/HeidiLopez

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