Author Topic: Preventing Withholding Tax USA - Courtesy of Ed  (Read 5554 times)

Offline Don

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Preventing Withholding Tax USA - Courtesy of Ed
« on: May 30, 2012, 08:59:27 PM »
I thought this might be helpful to other writers who are going to go the route of selfpublishing with either Amazon Kindle, Smashwords and Createspace and you reside OUTSIDE of the United States.

By default the IRS withholds 30% if you live outside of the USA and you selfpublish through any of the above ( i believe its the same for ibooks, B&N too )

Anyway for a long time people would say you need an ITIN number and there is a long crazy process that takes like 8 weeks minimum to get it, money to pay, passports to be sent etc etc.. and then you still have to send a W-8BEN to all three of the above and wait on them another 4 weeks before they notify you that no royalties will be held back when they pay you.

Well a recent update to this is that you don't have to go the route of ITIN and you can just get an EIN by phoning into the IRS number. Takes 10 mins tops. They give it to you over the phone and then you use that on your W-8BEN and away you go. Now you only have to wait around 4 weeks before they notify you instead of 12.

Nice part is someone has documented the entire process of both the place to phone, what to say and what to put on the W-8BEN here

Hope you dont mind me sharing it with you. It came in handy for me as I'm outside of the USA.

Each country has their own tax treaty with the United states and based on that is what you will be taxed if any. Canada its 0%, UK is 0%, Japan 0%, Australia 5% and India 15% ( poor bastards, if they didn't have it bad enough as it is)

*note* this is not legal advise and you should seek out legal advise. If anything goes wrong, you cannot come after me, my home, my car, my money or my cat yada yada yada!!!
I have a motto: when in doubt, go for the cheap laugh.

Offline Skip Slocum

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Re: Preventing Withholding Tax USA - Courtesy of Ed
« Reply #1 on: May 30, 2012, 09:04:51 PM »