Ditansource collects tax-related information to comply with international tax regulations. Below is an overview of the necessary details and processes that will help you while filling the details:
1. Why Do We Collect Tax Information?
Collecting tax information ensures:
- Compliance: Adherence to VAT, GST, and withholding tax regulations globally.
- Transparency: Informing freelancers and clients about tax deductions applied to their earnings or payments.
- Simplified Filing: Assisting users by providing accurate tax summaries for reporting purposes.
2. What Information Do We Collect?
The tax information we collect varies based on whether you are a U S-based freelancer or a non-U S based freelancer.
For U S based freelancers: We collect details required by the IRS, such as identification numbers and exempt payee codes, where applicable.
For non-U S based freelancers: We collect information relevant to tax treaties or withholding tax exemptions.
For more details on the specific fields collected, refer to W8 Vs W9.
3. How Is the Information Used?
- For Tax Withholding: Accurately calculate withholding taxes based on residency and applicable tax treaties.
- For Reporting: Ensure compliance with government regulations, including providing required information to tax authorities.
- For Invoicing: Generate tax-compliant invoices for all transactions.
4. Data Privacy and Security
Your information is securely stored and protected:
- We comply with GDPR, CCPA, and other data protection regulations.
- Tax information is used solely for compliance purposes and is not shared with unauthorized parties.
5. Need Help?
If you have questions about the tax information required or need help determining your freelancer type, please contact our support team at
contact@ditansource.com. We are here to assist you.