Double taxation occurs when you sell your stock images and generate income in a foreign country. But why does it happen?
It happens for these reasons: ① The tax authority of the country you reside in can impose taxes on your income because you live in that country. ② The tax authority of the foreign country can impose taxes on your income because the income was made in that country.
The taxation from both countries is justifiable. For example, South Korea will take 22% of your income as tax, and your country of residence will also take a certain percentage of your income according to their applicable tax law. But it could be considered unfair to you.
What you need to know here is that tax treaties are signed between countries to minimize the likelihood of double taxation. And you need to benefit from it. We understand that getting the documents can be a headache in your busy daily life. By reading this post, you will gain a comprehensive understanding of how to prepare tax documents, and that will be a start.
A valid identification document (a copy of your passport) is enough for us to process your payments. But it is not enough for you to avoid double taxation. You need to submit additional documents which are the Certificate of Residence and the application for the tax reduction.
Here are several points that you must know to prepare for additional tax documents.
1. The Certificate of Residence (Tax Residence Certificate) will be approved only if the document was issued in the year you apply for the tax reduction.
A tax Residence Certificate is proof that you currently live in the country where South Korea has a tax treaty. With this proof, we can acknowledge where you live and finally approve the application for tax reduction.
2. The Certificate of Residence has to contain information such as your name, your taxpayer number, your address, and the date of issuance.
3. The Certificate of Residence has to be issued by your country's tax authority.
It is understandable you are not familiar with the papers and don't know where to start. For some countries, it can be done easily via websites. Have a look at the websites below. If you don't have an online service for it in your region, you'll have to contact the public office by phone calls or in person.
- Russia: https://service.nalog.ru/nrez
- Ukraine(Kiev): https://kyiv.tax.gov.ua
- Spain: https://www.agenciatributaria.es
- Belarus: http://www.portal.nalog.gov.by
* The links above are based on the documentation that we received from our contributors. For more accurate information, we recommend you do your own research.
4. The application for the tax reduction can't be approved without a valid tax residence certificate.
A valid tax residence certificate is a requirement for approving the application. If the requirement is missing, the application might be rejected.
5. The approved application for the tax reduction is valid for three years.
We don't know if you happened to move to another country after you submit such tax documents. So the application has to be renewed after three years from the submission date. As mentioned above, you need a new tax residence certificate that is issued in the year that you update the application.
You deserve to receive the highest payment.
When you think you're ready with your documents and want to submit them,
follow the guide: Get Ready to be Paid.
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