SLC-S21W5: How to Handle Amazon Taxes
Hello steemians,
Find out the tax rates for self employment income in your country.
In Tunisia, the income of self-employed workers, including those generated by affiliate programs such as Amazon Affiliate, is subject to the Personal Income Tax (IRPP), the IRPP scale is progressive, with rates varying depending on income bracket.
According to the new 2025 Finance Bill, the proposed rates are as follows:
Income Range (TND) | Tax Rate (%) | Income Range (USD) | Deductions for Self-Employment | Notes on Amazon Affiliate Income |
---|---|---|---|---|
0 - 5,000 | 0 | 0 - 1600.00 | N/A (Exempted) | Not applicable for deductions as income is exempted |
5,001 - 10,000 | 15 | 1600.32 - 3200.00 | Standard deductions allowed for business-related expenses | Eligible for deductions if expenses are documented |
10,001 - 15,000 | 20 | 3200.32 - 4800.00 | Standard deductions allowed for business-related expenses | Eligible for deductions if expenses are documented |
15,001 - 20,000 | 25 | 4800.32 - 6400.00 | Standard deductions allowed for business-related expenses | Eligible for deductions if expenses are documented |
20,001 - 50,000 | 30 | 6400.32 - 16000.00 | Standard deductions allowed for business-related expenses | Eligible for deductions if expenses are documented |
50,001 and above | 35 | 16000.32 and above | Standard deductions allowed for business-related expenses | Eligible for deductions if expenses are documented |
Discuss whether Amazon Affiliate income qualifies for any deduction.
Deductions applicable to Amazon affiliate income include various business expenses necessary for the activity, among them, costs related to the rental or utilities of an office, travel expenses for business purposes, equipment such as computers and software, as well as communication costs such as telephone and internet access can be taken into account, Professional training costs, aimed at improving the skills necessary to carry out the activity, can may also be deductible.
Rigorous documentation of these expenses is essential to benefit from the appropriate tax deductions, in order to ensure a compliant and optimized tax declaration, it is advisable to seek the services of a chartered accountant or a tax advisor in Tunisia.
Amazon Tax Form Submission
Describe the process of submitting a W-9 or W-8BEN form (based on your residency). Provide screenshots (hide sensitive information) if possible.
Here are the steps I followed to submit the W-8BEN form on Amazon Associates.
Step 1: Go to the Amazon Associates dashboard
I logged in to my Amazon Associates account, top right, clicked my profile icon, then selected Account Settings from the drop-down menu.
Step 2: Open Tax Information Section
On the page titled "Your Associate Account", I located the Payment and Tax Information section, then I clicked on View/Provide Tax Information to get started.
Step 3: Start the tax interview
In the Tax profile of partners section, I started by selecting my tax classification, as I am an individual and not a company, I chose the Individual option, when asked was asked if I am a citizen or resident of the United States, I answered No, since I am a foreign resident, finally, I confirmed that I do not work as an intermediary or agent by selecting No.
Step 4: Enter my personal information
I filled out my personal information by indicating my full name as well as my country of citizenship, Tunisia, then I entered my permanent address, including street, city, province, postal code and country, as my correspondence email is identical, I checked the corresponding box.
Step 5: Provide my Tax Identification Number
I then provided my Tax Identification Number (TIN), which is issued by the Tunisian tax authorities, as I do not have a US TIN, I left this field blank and continued.
Step 6: Indicate the location of the services performed
I specified that all the services I provide are performed outside the United States by selecting the corresponding option.
Step 7: Verify and sign the W-8BEN form
The W-8BEN form was automatically generated based on the information I had entered, I took the time to review each section to ensure it was accurate, then I signed the form electronically upon entering my full name and I indicated today's date.
Step 8: Submit the form
After verifying everything, I clicked Submit Form to finalize the process, Amazon then validated my information, I received a confirmation that my tax information was successfully validated.
Step 9: Final confirmation
Finally, after validation, the system displayed to me the withholding rate applicable to my account, taking into account the tax treaty between Tunisia and the United States, which reduces this rate to 0%.
By following these steps, I completed my Amazon Associates tax obligation, allowing me to continue receiving my payments in compliance.
Tax Filing Process in Your Country
Explain the process of filing taxes in your country using online portals if available. Include steps and resources specific to your country.
In Tunisia, each Tunisian citizen or resident is required to declare their income within the legal deadlines for employed individuals with no income other than their monthly salary the declaration of income from the previous year (for example, 2023) must be completed before December 5 of the current year (i.e. before 12/05/2024 for the year 2023).
The current tax declaration process remains largely manual. The steps to follow for the annual income declaration are as follows:
You must first download or remove the annual income declaration form for individuals, available on the official website of the Ministry of Finance ([www.finances.gov.tn](http://www.finances. gov.tn/fr)) or in the nearest tax administration office, this form is only available in French or Arabic.
Then, the taxpayer must obtain a withholding tax certificate issued by the employer (company, institution or regional administration), once these documents are in hand, you must complete the first page of the form by entering the year concerned, the tax identification number, last name, first name, address and profession (for example, teacher), for people with a single income coming from their salary, it is necessary to check the box "Salaries and pensions of Tunisian origin,” in the event of exemptions, common reductions or other deductions, proof must be attached.
Once the form is completed, the declarant signs on the penultimate page, then submits two copies of the signed form to the counter of the tax office corresponding to his place of work or residence.
After paying any declaration fees, the declarant receives a payment receipt for the "annual collector" of the year in question.
Regarding income from affiliate programs such as Amazon, Tunisian tax law allows self-employed individuals to deduct certain business expenses to calculate net taxable income; these expenses may include rental or utility costs for an office, travel expenses for business purposes, equipment such as computers and software, and communications costs such as Internet access and telephone.
In addition, professional training costs aimed at improving the skills necessary to carry out the activity may also be deductible, rigorous documentation of these expenses is essential to benefit from the appropriate tax deductions, in order to guarantee a compliant and optimized declaration , it is strongly recommended to seek the services of an accountant or a tax advisor in Tunisia.
Reflection
Why is it important to manage taxes properly for online earnings? What did you learn from this proces?
In my opinion, it is essential to properly manage your taxes online for several important reasons. First, it helps ensure compliance with the country’s tax laws and regulations, because accurately declaring your income online helps avoid legal penalties, fines and tax audits which can not only be costly but also cause a lot of stress. In addition, it reflects a sense of responsibility that builds credibility and demonstrates compliance with the legal obligations imposed by “the State”.
Effective tax management plays a fundamental role in financial planning ,understanding and anticipating your tax obligations allows you to better allocate your resources and protect yourself from unforeseen financial events related to taxes. By taking into account deductions and ensuring that all eligible expenses are correctly declared, it is possible to reduce the risk of overpayments while improving the individual’s personal or professional financial resources. This proactive approach also facilitates access to certain government benefits such as subsidies, loans or social security coverage that are often conditional on tax compliance.
Finally, it is important to note that paying taxes directly contributes to the development of society. Tax revenues provide essential public services such as education, health and infrastructure, and by respecting their tax obligations, everyone contributes to the improvement of their community and country, while supporting the work of public institutions. Therefore, good management of online taxes related to income, in addition to being a legal obligation, is an approach that combines responsibility, financial insight and civic engagement.
Thank you very much for reading, it's time to invite my friends @khursheedanwar, @stream4u, @fombae to participate in this contest.
Best Regards,
@kouba01
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