Understanding Tax Requirements
When you submit an expense on Open Collective, you may be asked to fill in a tax form relevant to your location.
After you have submitted an expense, you may be asked to supply additional information for tax purposes. The information required will vary based on your location and the location of the Fiscal Host.
If you submit expenses for multiple profiles, such as your individual and company profiles, you will need to complete a separate form for each. You may also need to complete separate tax forms for each Fiscal Host you expense.
You need to submit this information for your expense to be paid.
This page will provide some basic details on what you may be asked to do. However, you may wish to consult an accountant or seek tax advice before completing any forms to ensure you are providing correct and relevant information.
We do not offer advice on how to fill out your tax forms.
Submitting expenses to a Collective with a US-Based Fiscal Host
If you submit expenses totaling $600 or more in a year to a US-based Fiscal Host, it is required by US law to collect certain information. This applies even if you are based outside the US.
This $600 threshold only applies to invoice expenses, not expenses such as payroll, grants or reimbursements.
Once your expenses to a particular US-based host exceed $600 in a year, expect to be contacted by the Fiscal Host and asked to fill out a tax form.
Fiscal Hosts have different processes for collecting tax information. This may depend on where they are located, what information is required, and how they choose to gather it.
For example, Open Source Collective uses an automated system that sends you an email with a link to complete your tax form on Open Collective. These forms are encrypted and only shared with the accountants of the Fiscal Hosts.
Other hosts may opt to contact you directly via email to gather necessary tax information
Which form will I be asked to fill in?
If your Fiscal Host is US-based, you will be asked to fill in either a:
W9 form (for US persons)
W-8BEN (for non-US-based individuals)
W-8BEN-E (for non-US-based entities, such as companies)
If you are not a US-based person, you will only be subject to income tax in your home country, and will not be taxed in both locations.
If you are filling out a W-8BEN or W-8BEN-E form, you may be asked if you claim "tax treaty benefits for chapter 3 purposes". This is to determine if you are a resident of a foreign country that has an agreement with the US which makes it exempt from US income taxes (or taxed at a reduced rate).
If in doubt about whether this is true in your case and whether the exemption applies to your situation, contact an accountant or tax expert.
US persons filing their taxes
If you are a US person who has submitted a W-9 form, the Fiscal Host in question will issue you a 1099 form by the end of January. They will need you to fill in this information for them to complete their taxes.
A Fiscal Host will generally not ask you to fill out a 1099 form if:
You are a corporation (1099s are generally issued to contractors and service providers)
You are a PayPal payee (PayPal tends to issue 1099s to payees itself if required, so the Fiscal Host will not need to do it)
You are submitting a reimbursement (reimbursement expenses do not require you to fill out a tax form, only invoices)
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