Your Follow on Question: May I please clarify... that if I complete and submit a W-8BEN "Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding" instead of a W-8ECI then 30% tax will be withheld and given to the IRS with me receiving the balance (remainder)?
ANSWER: Yes, but, you only have withholding if you are dealing business to business, or with agents. Individuals form comsumer sales will not be albe to withhold. The general public is ignorant of this kind of thing, and are not really required to do that, because they are making purchases. So you may still be on the hook for reporting your own income and paying the tax at the end of the year.
for example: if you are retained by a company to provide consulting services, the company would withhold back up taxes of 30% and they, the company would pay the tax to the federal government. However if a consumer buys a service or prodcut from you, they are not required to issue any tax payment or collect or withhold any tax, and so would not even know how to do that.
Your follow on question: about the portion of 100K or more. Normally this would be taxed, as personal income at more than 30%. However, this is business income not peronal services income, and no matter, you would receive the tax treaty rate of 30%. The tax treaty takes precedence.
I understand what you are trying to do. the tax returns are not that hard to do. Your accountant would probably be able to understand them. Even if he was not, you would only need a U.S. tax preparer to do this one time and after that you or your accountant would be able to do it on your own.
the problem you have is that there is no mechanism for consumers in general to withold taxes.
One big reason is, that you pay taxes not on gross revenues, but on net profts. The consumer has no way of determining that.
Setting up any kind of system to enable such transactionsn would be extremely costly. Consider, if you have 1000 customers, then you would have 1000 people making income tax payments in your name. You would have to have a system to produce the tax documents required for the customers to complete and fill in with specific instructions for turning the money in your name over to the IRS. What consumers would do that? who would want to buy from you? Consumers want to point and click. How would you determine the net profit from a single sale, when you have no exact idea of what your variable expenses would be for the business?
Trust me friend, the best way is to have your accountant figure your net profits using the schedule C and then for you to pay tax on that. If your net profits are less than the amounts that I mentioned earlier (8,950 ) you would not even have to file a return.
You can pay a bonus. There should be a bonus button somewhere.