{"id":219,"date":"2020-06-24T22:00:23","date_gmt":"2020-06-24T22:00:23","guid":{"rendered":"https:\/\/ogtax.wpengine.com\/?p=180"},"modified":"2023-03-30T06:58:27","modified_gmt":"2023-03-30T06:58:27","slug":"xbox-game-and-steam-developers-who-are-not-us-citizens","status":"publish","type":"post","link":"https:\/\/oandgaccounting.com\/staging\/xbox-game-and-steam-developers-who-are-not-us-citizens\/","title":{"rendered":"XBox, Game and Steam Foreign Developers and US Taxes"},"content":{"rendered":"<p>[vc_row css_animation=&#8221;&#8221; row_type=&#8221;row&#8221; use_row_as_full_screen_section=&#8221;no&#8221; type=&#8221;full_width&#8221; angled_section=&#8221;no&#8221; text_align=&#8221;left&#8221; background_image_as_pattern=&#8221;without_pattern&#8221;][vc_column][vc_column_text el_class=&#8221;answer_items&#8221;]If you are an independent game developer and a non-U.S (Non-Resident Alien) inventor,\u00a0 then the task of processing your personal and tax information can be very challenging.<\/p>\n<p>This blog post will help\u00a0 shed some light on the process, and ensure that payment made from the sales of your invention is hassle free.<\/p>\n<p>Foreign or Non-US Independent game developers\u00a0 may be eligible for a reduction,\u00a0 or exemption from U.S. income tax on their royalty income, provided their country has a <a href=\"https:\/\/www.irs.gov\/businesses\/international-businesses\/united-states-income-tax-treaties-a-to-z\">tax treaty<\/a> with the U.S.<\/p>\n<p>If a treaty exist,\u00a0 you may be able to take advantage, provided you have a relevant<a href=\"http:\/\/www.irs.gov\/Individuals\/General-ITIN-Information\" target=\"_blank\" rel=\"noopener noreferrer\">\u00a0Individual Taxpayer Identification Number\u00a0<\/a>(ITIN) and submit a properly completed treaty claim on\u00a0<a href=\"http:\/\/www.irs.gov\/uac\/Form-W-8BEN,-Certificate-of-Foreign-Status-of-Beneficial-Owner-for-United-States-Tax-Withholding\" target=\"_blank\" rel=\"noopener noreferrer\">Form W-8BEN<\/a>.<\/p>\n<p><!--===============google ad=================--><\/p>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3039986354638252\"\n     crossorigin=\"anonymous\"><\/script><br \/>\n<ins class=\"adsbygoogle\"\n     style=\"display:block; text-align:center;\"\n     data-ad-layout=\"in-article\"\n     data-ad-format=\"fluid\"\n     data-ad-client=\"ca-pub-3039986354638252\"\n     data-ad-slot=\"7838143718\"><\/ins><br \/>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/p>\n<p><!--===============google ad=================--><\/p>\n<p>Tax treaty information\u00a0\u00a0appears to be\u00a0 the most difficult and confusing part of the tax process for independent game developers who are not based in the U.S.<\/p>\n<ol>\n<li>You must determine if your country has a <a href=\"https:\/\/www.irs.gov\/businesses\/international-businesses\/united-states-income-tax-treaties-a-to-z\">tax treaty<\/a> with the U.S., and<\/li>\n<li>Decide if you would like to take advantage of the tax treaty<\/li>\n<\/ol>\n<p><u>Determine if your country has a tax treaty with the U.S.<\/u><\/p>\n<p>If your country falls into a \u201ctax treaty\u201d zone. <a href=\"https:\/\/www.irs.gov\/pub\/irs-utl\/Tax_Treaty_Table_1_2019_Feb.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">See this page Table 1,<\/a>\u00a0 Page 3, Income Code 10, 11 &amp; 12 \u2013\u00a0 Royalties).<\/p>\n<p>If your country has a ( 0) under the &#8220;royalties&#8221; category, it means your income will be subjected to 0% withholding.<\/p>\n<p>If you are above 0%, the US will unfortunately withhold at that rate.<\/p>\n<p><u>Decide if you would like to take advantage of the tax treaty<\/u><\/p>\n<p>If your country have a tax treaty with the U.S. then it is in your best interest to apply the treaty\u00a0 to either reduce or exempt the royalty income.<\/p>\n<p>If you are claiming treaty benefits, you are generally required to provide an ITIN<\/p>\n<p>You may apply for an <a href=\"http:\/\/www.irs.gov\/Individuals\/General-ITIN-Information\" target=\"_blank\" rel=\"noopener noreferrer\">ITIN<\/a> by submitting\u00a0 a properly completed <a class=\"plainlarge\" href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/fw7.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Form W-7<\/a>\u00a0to the IRS.<\/p>\n<p>Note: an ITIN is not strictly required to get paid, although without it you will be subject to an automatic\u00a0<a href=\"http:\/\/www.irs.gov\/Businesses\/U.S.-Tax-Withholding-on-Payments-to-Foreign-Persons\" target=\"_blank\" rel=\"noopener noreferrer\">30% U.S. tax withholding<\/a>, even if your country provides a lower rate of U.S. taxation.<\/p>\n<p>The\u00a0 process of applying for an ITIN alone can take weeks \/ months and it is easy for the ITIN application to be rejected by the IRS if Form W-7 is not completed in the right order.<\/p>\n<p>Almost all the platforms , such as Xbox , steam , etc.\u00a0 will report your\u00a0 annual U.S. source income or royalties\u00a0 on the IRS Form <a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/f1042s.pdf\">1042-S.<\/a><\/p>\n<p>This form is issued and sent to the foreign seller or developer\u00a0 on or before March 15 each year, the form will report ONLY your\u00a0 US sourced royalties and amounts withheld during the prior tax year.<\/p>\n<p>As a foreign developer , you are only taxed on royalties earned on sales made to U.S gamers, consumers or customers , therefore if some of your sales were generated from countries other than the USA , only the US sales will be subject to withholding or taxes in general.\n              <\/ol>\n<p>If you&#8217;re in need of professional bookkeeping services, we recommend visiting our subsidiary, <a href=\"https:\/\/ursaservicesllc.com\/\" rel=\"noopener\" target=\"_blank\">URSA Services LLC<\/a>. They specialize in keeping your finances in order so you can focus on growing your business. Don&#8217;t worry, we&#8217;ll still be here to handle all your tax needs. <a href=\"https:\/\/ursaservicesllc.com\/\">Visit URSA Services LLC<\/a> today to learn more!!<\/p>\n<p><!--===============google ad=================--><\/p>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3039986354638252\"\n     crossorigin=\"anonymous\"><\/script><br \/>\n<ins class=\"adsbygoogle\"\n     style=\"display:block; text-align:center;\"\n     data-ad-layout=\"in-article\"\n     data-ad-format=\"fluid\"\n     data-ad-client=\"ca-pub-3039986354638252\"\n     data-ad-slot=\"7838143718\"><\/ins><br \/>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/p>\n<p><!--===============google ad=================--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you are an independent game developer and a non-U.S (Non-Resident Alien) inventor,  then the task of processing your personal and tax information can be very challenging. Therefore, this blog post attempts to shed some light on the process, and ensure that payment made from the sales of your invention is hassle free.Independent game developers who are non-U.S. based creators, may be eligible for a reduction or exemption from U.S. income tax on their revenue, provided their country has a tax treaty with the U.S.<\/p>\n","protected":false},"author":1,"featured_media":531,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>XBox, Game and Steam Foreign Developers and US Taxes - O&amp;G Tax and Accounting<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/oandgaccounting.com\/staging\/xbox-game-and-steam-developers-who-are-not-us-citizens\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"XBox, Game and Steam Foreign Developers and US Taxes - O&amp;G Tax and Accounting\" \/>\n<meta property=\"og:description\" content=\"If you are an independent game developer and a non-U.S (Non-Resident Alien) inventor, then the task of processing your personal and tax information can be very challenging. 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