{"id":218,"date":"2015-06-24T22:00:32","date_gmt":"2015-06-25T02:00:32","guid":{"rendered":"https:\/\/ogtax.wpengine.com\/?p=177"},"modified":"2023-02-24T07:09:42","modified_gmt":"2023-02-24T07:09:42","slug":"tax-withholding-and-treaty-table-for-non-resident-alien-authors-publishers-receiving-royalty-income-from-us-vendors","status":"publish","type":"post","link":"https:\/\/oandgaccounting.com\/staging\/tax-withholding-and-treaty-table-for-non-resident-alien-authors-publishers-receiving-royalty-income-from-us-vendors\/","title":{"rendered":"Tax Withholding and Treaty Table for Non-Resident Alien Authors\/Publishers Receiving Royalty Income from US Vendors"},"content":{"rendered":"

[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_column_text]Royalties paid to a foreign entity or person are subject to tax withholding in the U.S. \u00a0A foreign entity or person is someone who is not a resident or citizen of the U.S. or a green card holder. The general rate of tax withholding is set by U.S. tax rules and regulations and is currently 30% of royalties paid. This withholding tax rate can be reduced if the recipient (you) is a resident in a jurisdiction that has a valid income tax treaty with the U.S.<\/p>\n

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\"\"This reduced rate is only available if the US vendor \u00a0receives the appropriate documentation from you. Without this documentation, the 30% withholding tax rate will apply.<\/span><\/p>\n

To guarantee you qualify to receive the full or partial exemption from tax withholding, you should submit a signed IRS form,\u00a0W8-BEN<\/a>, to the US vendor, eg amazon, smashword etc.<\/p>\n

The completed form must include a U.S. IRS-issued tax identification number \u2013 either an\u00a0ITIN<\/a>, SSN or\u00a0EIN<\/a>. If you are a U.S. citizen living abroad, you can complete a\u00a0W-9<\/a>\u00a0form with your SSN<\/p>\n

Most authors and publishers don\u2019t have one of the above IRS-issued tax identification numbers. so they must apply for one from the IRS.<\/p>\n

When you apply for an ITIN or EIN, the IRS requires you also provide a valid and signed letter from the US vendor, written on the vendor’s letterhead, stating your reason for requesting an ITIN.<\/p>\n

If you think you may need an Individual Taxpayer Identification Number, we \u00a0can walk you through the process.<\/p>\n

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