These are perfectly normal requests .
replyThese are needed to reduce withholding taxes and claim treaty benefits .
Where did you get that email from?
replyLooking at the required paperwork, I agree with Pocketbase to refuse funding.
replyIf you were already setup as a non-profit entity with 501c3 US taxes (or similar in other locales), this would be straightforward. Or, even if you were a for-profit company taking part with an LLC or other corporate structure. In those cases, you probably already have an accountant or tax advisor to help handle this stuff. For smaller individual level contributors, I can see how the extra paperwork and overhead could create enough of a hassle to make it not worthwhile. Which is sad.
replyIt looks like the author here is from Bulgaria, so who knows what other hassles they would have on their side.
Why? I don't see it as particularly onerous. They are simply complying with their country's KYC requirements. I've gone through worse to accept payments from US citizens with a US corporation. KYC/AML is annoying but its pretty unavoidable unless you want to do crypto.
replyIt's not really kyc .
It's just standard procedure to claim Double tax treaty benefits.
replyYou can look at the us W8-BEN
invoice for fund disbursement? are they trying to donate as expenses?
replyMost US companies take a tax deduction for charitable donations, I don't see why that wouldn't be the same for an Indian firm.
replyNo it's just that the Indian company is required to withhold taxes .
But they want to use the double taxation treaty to claim benefits to reduce it
replyPaying individual OSS contributors without a service agreement is not a charitable donation with regard to taxes. It's not a deductible business expense and typically leads to double taxation.
replyThat seems reasonable. It mostly looks necessary to comply with tax and banking laws.
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