Tax forms and local obligations

Taxes · Payments & Billing · Updated

Sovrano AI engages you as an independent contractor, which means you're responsible for declaring and paying your own taxes in your country of residence. Deel handles a few US-related tax forms; everything else is between you and your local tax authority.

What Deel handles for you

  • US tax forms (W-8BEN / W-8BEN-E) — If applicable to your situation (you receive US-source income), Deel walks you through completing the right form during onboarding. Most non-US Sovrano AI contractors complete a W-8BEN to declare their non-US tax residency.
  • Australian tax questionnaire — Required for AU-resident contractors.
  • Payment summaries / invoices — Deel automatically generates an invoice for each Sovrano AI payout. You can download them anytime from your Deel account — they serve as proof of income for your tax filings.

What you're responsible for

Deel is not a tax advisor and Sovrano AI cannot give you tax advice for your jurisdiction. You're responsible for:

  • Declaring your Sovrano AI earnings as self-employment / freelance income in your country of residence.
  • Paying any income tax, social security, VAT, or other contributions your local rules require.
  • Registering as a freelancer or self-employed individual if your country requires it (e.g. autónomo in Spain, freelancer in Germany, etc.).
  • Filing your annual tax return on time.

Consult a local accountant or tax advisor if you're unsure. The cost of a one-hour consultation in your first year usually pays for itself many times over.

How to download your payment history for tax purposes

  • Log into Deel and go to your invoices / payment history.
  • Filter by tax year (1 Jan – 31 Dec for most countries; different in some).
  • Download all invoices for that year, plus a payment summary report if Deel offers one for your country.
  • Cross-check against your bank statements to confirm what actually arrived in your account (after Deel's withdrawal fees and any currency conversion).

Frequently asked questions

Do I need to fill out a W-8BEN?

Most non-US Sovrano AI contractors do, even though Sovrano AI is European. Deel will prompt you during onboarding if it's relevant. The form simply declares that you're a non-US resident for tax purposes and aren't subject to US withholding. It takes about 5 minutes.

Do I owe taxes in the EU even if Sovrano AI is European and I'm not?

No. You pay tax where you reside, not where Sovrano AI is based. Sovrano AI doesn't withhold any tax from your payouts — you receive the gross amount and handle local taxes yourself.

Will Deel send my income data to my country's tax authority?

Deel reports earnings to tax authorities where legally required. Rules vary — for some jurisdictions Deel does, for others they don't. Either way, you're responsible for declaring the income yourself; don't rely on Deel reporting it for you.

Can Sovrano AI give me a tax certificate?

Your Deel invoices serve as the tax-relevant record. If your local accountant needs a Sovrano AI-specific document (e.g. confirmation of contract terms), contact payroll@sovrano.ai and we'll prepare one.

Do I need to register as a freelancer in my country before I start?

In most EU countries, yes — even for occasional freelance income. Check with a local accountant. In some countries (e.g. Spain's autónomo, Germany's Freiberufler) registration triggers monthly or quarterly tax obligations. The threshold for needing to register varies widely.

Sovrano AI paid me €X but the invoice shows €Y. Which one do I declare?

Declare the gross amount Sovrano AI paid (the invoice amount). Deel's withdrawal fees and currency conversion costs are your business expenses, which you may be able to deduct depending on your local rules.

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