US Tax Law requires that US-based companies like Amazon KDP, Smashwords, iTunes and Createspace, must withhold 30% of any non-US self-publisher’s royalties. Basically, if you are not an American and you just signed up for a KDP account, Amazon will automatically keep 30% of your earnings for tax reasons.
Does Amazon KDP pay through PayPal?
Amazon doesn’t accept PayPal as a regular payment method so it don’t be used for KDP.
Does KDP take taxes?
Royalty payments for sales on the U.S. store are subject to 30% U.S. tax withholding, including payments from the KDP Select Global Fund. Publishers may be eligible for a reduced rate of U.S. tax withholding if their country of permanent residence has an income tax treaty with the United States.
Are authors employed?
Some writers and authors are self-employed or freelancers. They sell their written content to book and magazine publishers; news organizations; advertising agencies; and movie, theater, and television producers.
What are the tax requirements for non US authors?
Non-US Authors are required to complete a standard IRS form called Form W-8BEN (for individuals) or Form W-8BEN-E (for companies) which includes some basic information about you, including your Foreign Tax Identification Number (TIN) and country of residence.
How does Form W-8 work for non US authors?
When you complete your tax information, you are certifying that you are not a US person. The Form W-8BEN or Form W-8BEN-E form will determine the appropriate withholding tax rate that will be applied to your sales to US customers, if any (see Royalty Withholding Tax below).
Who is required to file tax return for nonresident alien?
A fiduciary for a nonresident alien estate or trust, or. A resident or domestic fiduciary, or other person, charged with the care of the person or property of a nonresident individual may be required to file an income tax return for that individual and pay the tax (Refer to Treas. Reg.
Do you have to provide tax information if you are a non-US person?
It does not matter if you are a non-US person, your earnings will be subject to 24% backup withholding tax if you do not provide your tax information. The purpose of the Form W-8BEN and Form W-8BEN-E is to establish your identity and status as a non-U.S. person.
