How it's possible for EU aff programs to pay to individuals?
 

Well, it really sucks you have to pay income tax or royalties before you can actually pay a person from EU which has no business entity.
It makes me curious how all those EU aff programs are making it. How it's even possible to send money to Paxum or Payoneer from EU company?

Payer collects income tax for royalties? Are you sure? I just checked our own legislation here in Finland and it talks about work relationship. I don't think you have one if you pay/ get just royalties.

Do you mean sales tax?

You mean witholding for income tax?

yeah, EU company is supposed to pay withholding tax

I think this is only if you pay a person in the same country as you are incorporated in? Hope someone else can elaborate.

Well, maybe you should check what Google Ireland does regarding Adsense. Also, our domestic companies didn't withhold income tax at least some years ago (for individuals).

in EU it applies worldwide based on your country's agreement with the country your counterpart resides.

Google translation from one Finnish thread:

"Trade Tracker such as affiliate networks have a tax ruling that the income is not required to provide withholding tax. Teadedoubler acquired that I remember in 2006 the tax authorities.

Affiliate revenue should begin to pay value added taxes when they should be a year about 10 k €. That's the kind of kinky feature of the VAT must be paid in respect of income which you have not charged VAT as a (a is odd, yeah). This strangeness due to the tax authorities give a bit of fishing line.

In practice, how things go:

You can take the profit but the bank account and deducted from your expenses and mark the difference between a tax return under Other income. You get to do that as long as VAT income limit is not exceeded during the tax year. Receipts for expenditure should be saved and statement made form, was there 15 or 16. That is, as long as the income is about € 5,000 a year, no problem.

If the income begins to rise over a year that has to be very careful that the VAT due perverssiyden. If you believe that your affiliate income exceeds 8500 euros per year, the sun must then take it to the y-ID and go to the VAT-register before the year when the revenue has been rising more than that limit. In practice, the bases of the business name in the previous year when revenues threatens to rise above the limit. At the time you register the networks and Google and they add VAT to the invoice of the statement (Google does not välttis because they work as I recall the reverse VAT obligation)."

Mainostulojen verotus (Google, Tradetracker...) | MuroBBS

https://www.google.com/search?num=50...hold ing+laws

Pay people for what? and as what?

Well, not really. For example, if you get a payment from Adsense (Google Ireland) or any other source as a native person (not a company), in the country you live now (SLO), you need to declare it in 10 days. They will deduct 10% as normalised expenses from that. Than they send you a bill for witholding tax of 25% of the rest 90% of your income. Next year, when your tax return is due, you either get some money back, or if you are in the higher bracket than 25%, you need to pay some more.

Spain is similar, only withouding for this year is 19%. It is better to register as self employed, you can deduct actual expenses than.

About witholding tax, I think no company actually does it for payment outside of their own country.

HOWEVER, I heard that Amazon US is very strict about this and they withold tax for all countries US does not have a double taxation treaty signed with! It even witholds tax when paying commisions to Hong Kong company (???).

if an eu company pays you, no matter where you are, you need a VAT number. With your VAT number, you can declare not being an EU citizen (haha :P ) and get the money returned to you