Do taxes get taken from my paypal account? (Not a US citizen, but with online income)

[Tachie1]

Hello!

I have questions regarding the taxation for non-US citizens on paypal business accounts.

I am not a U.S. citizen, but my income comes from a platform similar to fiverr. I pay my taxes to my own country.

Is there any chance that paypal will want me to pay taxes to the U.S.? If the answer is "yes", then do they automatically remove the tax money from my account?

I got suspicious of that when I was trying to answer the fw8ben form on my paypal business account... I was afraid of being double taxed. I tried reaching out to a lot of accountants in my country, but none of them has knowledge of paypal nor any knowledge about receiving income online, which got me very frustrated 😞

So far I haven't been able to submit my fw8ben form, as they keep denying it because they claim it's not properly filled, because the accountants filled it up wrong. The way I fill this form will affect my chances of being double taxed?

Thanks!

[PayPal_JonK]

Hello @Tachie1,

Welcome to the PayPal Community! This is a great question. I pulled the following information from the Help Center article What is FATCA and what should I do: "FATCA requires financial institutions such as PayPal to provide information about accounts outside the United States but owned by Americans. If you are a non-US PayPal account holder, you will need to provide PayPal with additional information and confirmation of your address as well as your non-US status."

For more information on the classification of taxpayers and what obligations you may be asked to complete, please see the US IRS Taxpayer Site.

I hope that clears things up,

 - Jon K