US authors and permanent US residents
As long as we have a completed W9 form, there will be no tax withholding on any royalty payments.
Non US Authors
The Internal Revenue Service requires that we withhold 30% of all royalty earnings for all foreign nationals except as provided below:
Some countries have established tax treaties with the US, which benefits its citizens by lowering the amount of tax withheld by the US taxing authority. The way to take advantage for this is by obtaining an individual tax identification number from the US internal revenue service. This document is valid for life, and can be used with other companies from which our authors may also be receiving payment. For more information please go to IRS.gov
and type ITIN in the search term. Then click on the top subject Individual Taxpayer Identification Number (ITIN)
you will be prompted to a detailed frequently asked questions section. Once an ITIN is obtained, this must be submitted to our office and we will then apply the appropriate tax withholding rate. *some countries do not have a tax treaty with the US, in this case the rate will remain at 30%