In short, for feral tax reporting purposes, foreigners who do not have an SSN can apply for an ITIN to replace the SSN for tax reporting. directory navigation Uses of Individual Taxpayer Identification Numbers Do I ne an Individual Tax Identification Number? Application reason How to declare ITIN method one way two Precautions ITIN Personal Tax Form Uses of Individual Taxpayer Identification Numbers The main reason for cross-border e-commerce sellers to apply for ITIN is because they have register a U.S. company , and the U.S. company has obtain sales revenue from the Unit States and generat actual profits. The company distributes the proces to shareholders.
As a foreigner when receiving profits
From the Unit States, you ne to file a tax return with the IRS. Although the terms of the agreement are somewhat complicat, it is generally understandable that the income obtain by individuals from the Unit States meets certain conditions, and they ne to declare personal income tax to the IRS. The ITIN is your tax identification number. To give a simple example, a Chinese travel to the Unit States and won some money at a Las Vegas casino. When he went to Ukraine WhatsApp Number List the casino to settle the bill, he found that a 30% tax rate was duct. Then, I was told that the tax agreement between preferential tax rate is 20%. After applying for an ITIN number, I can apply for a tax refund to the IRS and get a refund of 20%.
Of course in actual life and work a large part of the
Purpose of Chinese people applying for ITIN is bas on the purpose of feral tax declaration. For example, in order to avoid risks, most U.S. banks refuse to open U.S. bank accounts or issue U.S. crit cards to foreigners who do not have an SSN number. However, when you can provide an ITIN number, the green light is open to you. Similarly, some collection and payment tools can also allow non-Americans who do not have an SSN to apply for or resolve usage restrictions by using ITIN instead. For example, some advanc features of the US version of PayPal.