5 Easy Steps to Avoid the 30% Tax Withholding for Non-US Self Publishers

How-to-reduce-Amazon-tax-withholdings-and-setup-ACX-when-foreign

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.  This isn't to be confused with Amazon's cut of your earnings…this is on top of your earnings.  So, if your book is priced at $9.99, Amazon keeps 30%, and also withholds another 30% for taxes, and you're left with…40%Ouch!

Ouch!

Losing and extra 30% of your hard earned money is a hard pill to swallow!

Thankfully, depending on where you live, you can take 5 easy steps to change it around and reduce that percentage and in some cases, completely remove it.

Which equals more money in your pocket.

In this article, you will learn about:

  • What countries can reduce the Amazon tax withholdings
  • Amazon’s tax withhold requirements
  • What is an ITIN and an EIN and which one do we need
  • 5 simple steps to get your own EIN and reduce your losses in all markets
  • Using the steps above, how you can get an ACX account even if you're a non-US resident

My mini disclaimer- I am neither a lawyer nor a financial planner. For any specific tax questions and how to go about paying taxes on your royalties in your country and similar issues, you will need to consult it with someone like an international tax adviser, an accountant or a lawyer.

List of Country Tax Withholding Rate

Are you eligible to reduce your US tax withholdings?  The answer is….it depends.

It depends on where you live, or where your company is registered, and what Tax Treaty that country (where your fiscal residence is) and the US have in place.

To make it easier for you, I have listed them here:

List of Kinle Countries and Their Tax witholdings

Remember, it depends on where you live OR where your business resides, not what nationality you are.

For example, when Dave Chesson lived in Sri Lanka, even though he was American, he would have had to pay the Sri Lankan 10%. However, he set up a publishing company in the US, and was, therefore, able to not pay any taxes, thus saving himself the 10% Sri Lankan tax withholding, which ultimately saved him over $20,000 during that time.

To access the full list of countries directly from the IRS click here.   Also, for more information on how Amazon sees the tax withholdings, check out their official page here.

EIN versus ITIN

So, now that we know that you're eligible, we need to get a particular tax number. You can either get an Individual Tax Identification Number (ITIN) or you get an Employer Identification Number (EIN).

The quick and dirty between the two is that an ITIN takes a LONG time to get and requires lots of steps like filling out forms, paying fees, and visiting U.S. Embassies or consulates.

Luckily for us though, the American IRS views non-US authors as small business owners and therefore allows an EIN to be granted…which you can get from the comforts of your own home and even in your pajamas.

For more information on ITIN vs EIN, check this out.

Update – as for 2017, instead of calling the IRS, you could also try to use your local tax number (individual, or if you operate as a corporation- your corporate tax number). However, while this will work for most non-US countries, in some cases, you still may have to call IRS to get your EIN number. If that’s your case, then the following instructions will help you.

Let’s Get Rid of the Holding: How to Get an EIN

First things first- get your EIN number. You have nothing to lose but a lot to gain. For that, all you need to do is to call the IRS and simply ask them for your EIN number.

Step 1: Call IRS: (1) 267 941 1000

You used to be able to fill out an online form, however, in 2014 the form changed and now requires a Social Security Number (SSN) or an ITIN. You can get around this by calling.

TIP: Their office hours are 7 AM- 10 PM US Eastern Time. I suggest you call them early in the morning (their local time) or at the end of their shift.

Step 2: Provide Basic Information

They will ask you for your name, surname, and your address. In case you operate as a company, make sure you communicate that and explain what your company does.

Step 3: Provide a Reason for the Call

They will ask you for a reason for your call. Again, these are the lines you want to use (you may want to jot them down on a piece of paper):

I need an EIN number to comply with the IRS withholding regulations

I am not a US person, I am (your nationality) and I live in (your country of residence)”

I am not starting an entity in the US

I am an individual and I need to fill my tax forms to obey with the US tax regulations. My intention is to (Insert reason like -publish eBooks on Amazon/work with American companies/ sell info products on Clickbank/ become an Amazon affiliate).”

I have recently started my self-publishing account with Amazon.com and I have to comply with the IRS withholding regulations and fill the W8 – Ben form

After you provide this reasons, they will ask you some crazy questions like “Are you going to be operating heavy machinery in the US” and stuff like that. You know what to say, right?

Step 4: Get Your EIN Number

Finally, they will give you your EIN number. Just write it down – you are ready to go.  As soon as you get your EIN number, you can start using it. However, understand that it will take about one month before the IRS will update their information to reflect your EIN number.  This will become important in the next step.

Step 5: Update your KDP Tax Information

To Access Your KDP Tax information, do the following steps:

Step 1: Go to your account and click “(your name) Account”

 

 

 

Step 2: Then click on “Tax Information.”

 

 

 

 

 

 

 

Step 3: Then Click on “Complete Tax Information” or “View/Provide Tax Information” if you've already completed it.

 

 

 

Here is more information on how to fill out your tax information step by step once on the form.

When they ask “Do you have a U.S. TIN?” click yes and fill in your newly acquired EIN.

Then click submit and in about 10 days, you should be good to go.  However, be prepared to get a rather depressing email from Amazon saying that your IRS records did not match (usually takes 1-2 weeks before getting this).  Remember, it takes the IRS about a month in order to change your record.

To get through this, simply update your tax information and re-submit. After 2 more weeks, it should be fine, and your withholding rate will be reduced. Nothing to worry about. Easy peasy!

Foreign Tax Withholdings From CreateSpace, Smashwords, and other Book Markets

If you also publish paperbacks with Createspace, Smashwords, iTunes, Barnes & Noble, or just about any other US-based online book market, use the same EIN number to update your tax information. These other markets will not update it automatically.

I remember I skipped this step, as I believed that since Createspace is an Amazon company, it all updates itself automatically.  Whoops!

But since it does not work that way, you need to make sure you update your tax information accordingly.

How to Get an ACX Account if You're Foreign

If you want to create an account with ACX.com (to publish audio books), all you need to get is a US address or that you can obtain from ReShip. Update: ACX now allows for Canadians as well.

You will also need a US bank account that you can get from Payoner.

Once you have gotten that address, just go ahead and start your account.

Use a different e-mail address (not the one you used for KDP or Createspace)
Fill in your tax information using your EIN number + putting all your residency details and your local address.

Note- my situation is a little different.  Since I am incorporated in the UK, I use my company address etc. However, I know many publishers who use the above-mentioned solution. My point is that the process of filling in your ACX, Createspace, and even Amazon Associate tax information is exactly as in the case of KDP. I have a detailed step-by-step guide (with screenshots) here:

http://www.lifestyledesignsuccess.com/blog/online-business/how-to-complete-your-amazon-kdp-acx-and-createspace-tax-information-non-us-publishers/

 

Final tips:

Find someone like a tax strategist or an international lawyer locally, where you live. They will help you with your tax situation.

Important Note– don’t tell them that you “sell books” on Amazon. It’s Amazon that sells the books! Amazon sells and Amazon pays VAT and all other taxes like that. Tell them that you “receive royalties from Amazon”. Ask them to check your local regulations on royalties.

At some point, you may want to consider starting a company and publishing your books as a company. Especially if you want to scale and wish to deduct some expenses like covers, editors, marketing services from your tax.

I operate as a company now (I actually have two companies), and even though the initial changes may be a bit scary, I can honestly tell you, it’s one of the best things I have done for myself. Now, whenever I invest in a course, seminar etc. it’s a company expense (aka a tax write off). Of course, you would need to talk to a qualified international accountant/ tax advisor to determine whether setting up a company is a good option for you or not (it will depend on many factors, mostly your income).

In case you decide to upgrade your account to a company account, the process is very simple. You will need to get another EIN number for your company (call IRS following the same template, but give them your company details). Then, you will need to update the information on your KDP/ CS and ACX account. You could also use your local corporate tax number instead of your EIN number. As of 2017, it should work fine.

If you decide to change your company name (this is what I did with one of my companies), you will need to call IRS about it, and update the information on your Amazon accounts. I recommend you always contact KDP, CS and ACX support before making any changes. Just in case.

Again, if you struggle with filling in your tax information, you can check out this complimentary post I created for you:

http://www.lifestyledesignsuccess.com/blog/online-business/how-to-complete-your-amazon-kdp-acx-and-createspace-tax-information-non-us-publishers/

In many cases, it will be cheaper for you to do it as a company. To learn more about how you can start an LLC in the US, check out Dave’s article here. UK and US

Finally, remember that I am not a professional qualified in international taxes and stuff like that. I simply share some information based on my own research and experience. If you feel lost, consult with a good international lawyer or a tax strategist. But your EIN number is the step number one.

Good luck and may your bank account be happy with more royalties and less taxation! Happy and profitable publishing!

86 Comments

  1. Aladdin on June 22, 2020 at 2:22 am

    when i make acx account i must apply new email address not the used one in kdp or its ok if I use the same email in both accounts and I have ein number and us address ?

    thanks

  2. Martin on February 17, 2020 at 3:15 pm

    Hey Dave,
    Great content. Quick question referring the ACX Account. Shouldn’t it be better to open that account with the same email address we are using on our KDP account.? The reason I’m asking is imagine if I make an Audio version of one of my books. would not it be plagiarism to Amazon`s eyes since I’m using a different entity even though I’m the same person? Thanks

    • Dave Chesson on February 21, 2020 at 11:11 am

      No, not exactly. You’d still need to link them together so they sell on the same page.

    • Anibal Pedroso on May 16, 2020 at 4:24 am

      Thanks.
      Great stuff.

  3. DarKrowSama on December 2, 2019 at 3:42 pm

    If I got 35% royalty, and US takes 30%, I would become a beggar with 5% left. lol. My country doesn’t have tax treaty with the US, so no point with the hassle. Double taxation is the only way. lol.

  4. Soh Hui Cheok on October 15, 2019 at 3:28 am

    So, as a non-US publisher who resides in a country that does NOT have a tax treaty with the USA, how can I reduce the withholding tax of 30%? I cannot seem to find any info on this. Any help is appreciated!

    • Dave Chesson on October 16, 2019 at 1:09 pm

      Either live somewhere that does, start a business where it does, or change citizenship….but there aren’t any hacks out there to evade the tax laws.

  5. Soh Hui Cheok on October 5, 2019 at 12:18 am

    So, what is the tax treatment for publishers whose companies aren’t in a country where the USA has a tax treaty with?

  6. Hans Schumann on April 17, 2019 at 12:32 pm

    Thanks for this great article. One question: after you have updated your tax information on Amazon Kindle and qualified for the discount, can you retrospectively reclaim withholding tax retained in the years before the update on the account?

  7. Jacopo Baroncelli on March 29, 2019 at 10:16 am

    Hi! Do you know how long does it take to have your tax survey accepted if you received the EIN a week before? I remember a question asking “did you receive your TIN less than 60 days ago?” and I said yes, so that means what they will approve it 60 days from the day I received my EIN? I’m from Europe btw

  8. aikidolutte on March 8, 2019 at 7:10 pm

    Hi Marta, thank you for this amazing article ;).
    I have a question : I’am living in north africa, and i publish books on kindle as individual….can i get an EIN number just by calling the IRS and provide my name !! or do i need some extra informations (i’am not asigned to the taxes in my country ^^) ??.thank you.

  9. tom on February 15, 2019 at 9:13 pm

    I have an EIN number, when i filled the tax interview KDP on the 2 page I’m ask to give my address in the USA, which I do not have or I cannot complete the form which address should I put?

    • Dave Chesson on February 16, 2019 at 12:24 pm

      Like she says in the article, you fill in your own address. The only reason why it would ask you that is if you answered you were a US citizen. So, one of the other steps is filled out wrong. Here is an article that that article references about it: http://www.lifestyledesigns

  10. Abid on February 10, 2019 at 2:24 am

    Is this Process working in 2019 🙂 thanks

    • Dave Chesson on February 10, 2019 at 3:16 am

      Yup

      • Beng on April 16, 2019 at 1:21 pm

        I have receive my EIN from IRS but when i fill in the tax interview form.They say that i can only use ITIN or SSN to fill the W8 Ben form. IS there any other solutions?\

  11. NepTune RainbowDreamer on December 22, 2018 at 1:48 am

    I came across this article while researching recently and it helped, however, loads has changed and there is an easier, quicker way to avoid the US 30% tax withholding. Please refer to this post:
    https://www.savvynewcanadia

    • Robson Cubo on March 26, 2019 at 4:59 pm

      But only for who live in a country wich has a tax treaty with the US 🙁
      My country doesnt have it, so I still searching a way to avoid the 30%.

      • DarKrowSama on December 3, 2019 at 5:09 am

        Have you tried to consult any CPA?

  12. Ehsan Khabiri on November 19, 2018 at 3:39 pm

    How much is the withholding with Singapore?

  13. Gianni Marinozzi on November 14, 2018 at 11:33 am

    hello! this is gianni from italy. Great article! One quest regardin ACX….i’m trying to create an account , i know about reship and pyoner for bank account but what about ID tax? is there any way to have that? i feel like address and bank account are not enough…hope you tell me i am wrong…tks
    g

  14. Isaac Javan on February 13, 2018 at 6:59 am

    My country also does not have a tax treaty with US. It was painful at first, I almost wanted to give up. Because losing 30% is quite a lot. But then, writing is my passion. I have reached a point that what matters is getting my book out there. To me, that pays a lot more than money itself. Knowing that my book has changed someones life, makes me more happy than anything in the world. So I have decided to live my passion, and write as many books as possible and see as many lives as possible getting transformed through me. This gives me peace. If writing is your passion, do not give it up, simply because you are not eligible for 30% off. A good book can give you other opportunities that pay more than money you could ever made with Amazon`s royalties. do not give up, if writing is your passion. It will pay off one way or another. do not give up. Keep writing.

    • Dave Chesson on February 13, 2018 at 1:10 pm

      Great words of wisdom Isaac!

      • Isaac Javan on February 13, 2018 at 4:46 pm

        Thank you so much Dave!

  15. Suresh Menon on January 15, 2018 at 7:41 am

    Hi Marta. Need your advise. My country is NON TAX TREATIES with USA. My country is not in the list. Can this method of getting EIN helps to remove the tax withhold by Amazon?Will there be any method to help those who are non tax treaty with USA and still get exempted from tax withholding. Many thanks!

  16. Ash on December 13, 2017 at 5:13 pm

    Hello,

    Refering to this
    “Amazon keeps 30%, and also withholds another 30% for taxes, and you’re left with…40%Ouch!”

    actually the 30% withholding is of the remaining 70% royalties so 30% of 70% is 21% of the original amount. Means you keep 49% of the initial list price.

    Just a minor correction.

  17. Adam Smith on October 31, 2017 at 1:36 pm

    When I am about to submit the EIN it throws me away due a lack of Physical US address. What can I do?

    • Adam Smith on October 31, 2017 at 2:32 pm

      ReShip.com solved the problem. Thanks!

  18. Prince Jain on October 23, 2017 at 6:34 am

    Hello. I am from India and I own an partnership firm. I already have an EIN number and my tax is already reduced from 30% to 15%. As per new guidelines I am required to submit a Tax Interview at Createspace to keep it 15% in future. In the online interview I am unable to choose and fill from Limitation of Benefit Options. Do you have any idea and help me out?

  19. Christine on September 20, 2017 at 3:55 pm

    Great post Dave and Marta! I’ve shared with my writer’s blog – thanks!

  20. Rakshith Nani on June 5, 2017 at 4:07 am

    what is this 30% tax are they recieve tax from our books profit if 100dollars then they are going to take 30 dollars from the books which has sold is it right………
    its not that we have to pay right…..
    reply pls

  21. Hassan Khalid on April 4, 2017 at 3:29 pm

    @marta_tuchowska @StawickiMichal : Nearly all of us struggling with the Problem that , we have received an an EIN # ; but having registered as an Individual , we are being given the ONLY Option of entering the ITIN # . Neglecting this if we enter the EIN # then we receive an Email saying :

    Based on your prior inputs, an ITIN or SSN would be expected, but you have provided an EIN. Generally, EINs are issued to businesses and organizations. Your prior input for Type of Beneficial Owner is an Individual and not a business or organization. You can either provide the ITIN or SSN of the individual who is the beneficial owner, or if the beneficial owner of the income is a business or organization, please update your previous inputs.”

    : Any Solution to this ?

  22. Bento de Espinosa on March 28, 2017 at 9:31 pm

    Thank you, Marta! It worked, they gave me a EIN number. The problem is, the KDP Tax Information asks me for Type of beneficial owner (Corporation, Disregarded Entity, etc.). I don’t know what to select. I don’t see anything that fits a one-man business. What type of business should I select?

    • Hassan Khalid on March 29, 2017 at 8:16 am

      Hi , Did they Give it you on Phone call ? What did they ask you ? Please share a little bit –

    • Hassan Khalid on April 4, 2017 at 3:25 pm

      @bentodeespinosa : Did you find any solution ?

    • Georgi Ivanov on June 14, 2017 at 2:37 pm

      Hello Bento,

      Did you find the answer for this?

      George

    • Marta Magdalena on September 20, 2017 at 10:03 am

      If you have a company, choose- corporation. if not, then -individual. But I have no idea what your business entity is. I suggest you hire an accountant to make sure you do it the right way.

  23. mgbenka ifeanyi on February 9, 2017 at 1:08 pm

    I am a Nigerian and the 30% seem much to me.
    do you know if there is anyway to reduce it?

  24. Nick Vasey on January 9, 2017 at 6:20 pm

    So, it looks like the EIN is NO LONGER functional for an individual. I had previously (successfully) registered as an Australian for tax purposes and had my withholding rate reduced to 5%. Logging back into Amazon recently however, I saw that it had changed back to 30% (I received no notification, no nothing – it just flipped back to 30%). I went through the rigmarole of trying to re-register my details, and it seems the EIN is no longer useable. This is the error message I got.

    “Based on your prior inputs, an ITIN or SSN would be expected, but you have provided an EIN. Generally, EINs are issued to businesses and organizations. Your prior input for Type of Beneficial Owner is an Individual and not a business or organization. You can either provide the ITIN or SSN of the individual who is the beneficial owner, or if the beneficial owner of the income is a business or organization, please update your previous inputs.”

    This is the current state of play. Does anyone have any relevant updates in light of this sad money-grubbing fact? 🙁

    • Hassan Khalid on March 29, 2017 at 7:57 am

      Do you have any updates regarding the issue that you raised ? Is the EIN number Working ? Or is it useless to undergo the process of Calling them & requesting an EIN # ?

    • Hassan Khalid on April 4, 2017 at 3:24 pm

      @nickvasey : Did you find some Solution to this ? I have now gotten the EIN number but I am an individual & the tax form gives me the option of entering ITIN # only . What did you do ?

    • Marta Magdalena on September 20, 2017 at 9:56 am

      hey Nick, you may want to talk to an accountant about it. International laws change all the time. Also, if you are an individual, you can also try to fill in the tax info again with your local tax number. But again, it’s better of you can talk to an accountant.

  25. Sven R on December 28, 2016 at 12:09 am

    Couldn’t I register an LTD in UK and use that for Amazon? To save 30 % (if i am not in one of the listed counries?)

    • Marta Magdalena on September 20, 2017 at 10:05 am

      Of course. UK LTD is a great option. But like with everything, there is a process and a learning curve involved. Hire an international accountant to make sre you do things the right way.

  26. Daud Hamadi on December 19, 2016 at 5:44 pm

    I cant call the number for IRS from ireland ((001 267 941 1000) for some reason. Can anyone help please.

  27. mgbenka ifeanyi on December 19, 2016 at 1:24 pm

    gotten my number and everything validated but the Tax treaty

    is excluded in my country (NIGERIA), so i will continue to pay the 30% tax

    very bad but is there any way to remove it further?

    • Gerald Kanyingi Njuguna-Gee on September 18, 2017 at 6:31 pm

      im from Kenya..got my EIN today and thought it would reduce the 30% tax but it didnt work

    • Marta Magdalena on September 20, 2017 at 9:59 am

      Talk to an accountant about it. When declaring your Amazon income in your country, you may be able to write off that 30% paid to the IRS. But again, I am not qualified to give you this kind of information. Personally, everything I do in my business, I consult with an international accountant.

  28. Γιαννης Αντωνοπουλος on December 6, 2016 at 11:23 am

    Hi, thanks for your guide. I have a question. When I get my EIN as foreigner does the treaty “works” by itself, or I have to make fill an extra form every year in order IRS do not with hold 30%? I want to accept payments through stripe. Thanks

  29. Mike Ferson on November 28, 2016 at 6:25 pm

    Hey Marta, I am from Macedonia, even if I get the EIN and insert into my tax interview, I will still be charged with 30% tax right? Because Macedonia is non-treaty with US. Any idea how can I reduce the tax?
    Thank you.

    • Marta Magdalena on September 20, 2017 at 10:06 am

      sorry to hear that, please talk to an accountant. Maybe that 30% paid to the IRS can be written off your local taxes?

  30. Maria McMahon on October 12, 2016 at 12:53 pm

    Oh, here’s the message I got: Based on your prior inputs, an ITIN or SSN would be expected, but you have provided an EIN. Generally, EINs are issued to businesses and organizations. Your prior input for Type of Beneficial Owner is an Individual and not a business or organization. You can either provide the ITIN or SSN of the individual who is the beneficial owner, or if the beneficial owner of the income is a business or organization, please update your previous inputs.

  31. Maria McMahon on October 12, 2016 at 12:50 pm

    This is indeed useful and accurate – I’d already found out how to get an EIN and that went really well, but now, as mentioned above, I got the message saying that my information doesn’t match the IRS records. When I try now to update the info and put my EIN in, it’s saying I can’t do this if I list myself as an individual, and of course that is the only option that is relevant to me. In fact, trying to figure out what the others actually mean is a bit like going deep down the rabbit hole… my plan now is to call them again at a time when the estimated wait isn’t 30-60 minutes as it was just now when I tried to see if I can get this sorted!

  32. Dish1111 on September 8, 2016 at 7:21 am

    I have received my EIN today on phone. Should I wait for 2-3 weeks before updating my EIN in amazon tax interview, or can i do so right away? Please help.

  33. Kevin on May 28, 2016 at 9:48 am

    I have 2 questions here

    1. I’m from Indonesia, that means if I have EIN number the tax withholding will only be 10%? or 0%?

    2. Is there any other way beside making a call directly to get my EIN? By email or such perhaps?

    Thx

  34. Ivan Juras on May 24, 2016 at 11:22 am

    So, if your country doesn’t have a tax treaty with the US, even if you get EIN, they’ll still keep 30%, right?

    • kindlepreneur on May 24, 2016 at 1:23 pm

      Yup…

      • Smith Ng on June 3, 2016 at 8:17 pm

        too bad for me since my country is not on that list, it’s useless to get EIN either way. Is there any other ways for people who are not on that list?

  35. Salwa Ib on May 10, 2016 at 5:54 am

    Hi,
    Great article by the way, I really appreciate how useful it is. Just to re-affirm you do NOT need to be a citizen if you live in one of the countries within the ‘List of Country Tax Withholding Rate’?.
    Thanks Dave 🙂

  36. Eric Z on April 20, 2016 at 8:23 am

    This is -STILL- an enourmously helpful article. I keep sending it to friends oversees almost daily. Thanks Dave!

    • kindlepreneur on April 20, 2016 at 10:05 am

      Awesome to hear Eric! Yeah, saving that much in your income is always important…that’s for sure.

    • Marta Magdalena on September 20, 2017 at 9:59 am

      glad it helped 🙂

  37. beetle tiger on March 4, 2016 at 7:54 am

    Hi. Where can I find “IRS Publication 515” to see country wax withholding rate?

  38. bardirian on January 28, 2016 at 4:24 am

    Hi Marta,
    In your sharing, you mentioned that
    “It depends on where you physically live (not where you are from) and what Tax Treaty that country and the US have in place.”

    I like to know more about this, if I am a Taiwanese, and I am living/working in Thailand as a nomad, do you think I am able to apply from Thailand?

    • Marta Magdalena on September 20, 2017 at 10:10 am

      Please talk to an international accountant.
      Also, we have updated the article now.
      Many things depend on international laws,. tax treaties between different countries and your business entity. As an online business owner, you can register a company wherever you want, and then you pay corporate taxes there. But again- the only way to know what works for you is to talk to an accountant. You gotta pay something somewhere. But a good accountant will have a look at your assets and situation and design the best option for you.

  39. Winson on January 24, 2016 at 12:22 pm

    Hi Marta,

    I transitioned from a single person to a company in Singapore, is the EIN for a new company different from an individual? i haven’t called for any EIN before, but i did receive the 1042-S letters detailing that i’m staying in Malaysia and did complete the tax interview inside kdp. So as a company is it possible to get a new EIN from one of the listed reduced withholding countries?

    when i call to ask for an EIN for my company, do i still answer like the above article, “I am not a US person, I am (your nationality) and I live in (your country of residence)”

    • Marta Magdalena on September 20, 2017 at 10:02 am

      hey Winson, we have updated the article now. I have a company in the UK, I went through an entire process and filled in with my company info, company tax number, back account etc. I think you could use both your local corporate tax number or the one from IRS (but it must be under your company name). But it may depend on your country, I have no idea how it works on Singapure.

    • Marta Magdalena on September 20, 2017 at 10:04 am

      When you call IRS as a company, they will ask about your company name, address, date of incorporation and activity. 🙂

  40. Fem-dom Destiny on November 16, 2015 at 7:54 pm

    This article pulled me down. I wasn’t aware that someone can ask for 30%. That is insane from affiliate marketer perspective. I can see that list above but many countries are missing. Where we can find complete list of countries? thanks

    • kindlepreneur on November 16, 2015 at 10:28 pm

      As far as I know, that’s it. All others are 30%.

      • mouaad on December 5, 2015 at 12:40 pm

        Australia: 5%, Austria: 0%, Bangladesh: 10%, Barbados: 5%, Belgium: 0%, Bulgaria: 5%, Canada: 0%, China: 10%, Cyprus: 0%, Czech Republic: 0%, Denmark: 0%, Egypt: 15%, Estonia: 10%, Finland: 0%, France: 0%, Germany: 0%, Greece: 0%, Hungary: 0%, Iceland: 0%, India: 15%, Indonesia: 10%, Ireland: 0%, Israel: 10%, Italy: 0%, Jamaica: 10%, Japan: 0%, Kazakhstan: 10%, South Korea: 10%, Latvia: 10%, Lithuania: 10%, Luxemburg: 0%, Malta: 10%, Mexico: 10%, Morocco: 10%, Netherlands: 0%, New Zealand: 5%, Norway: 0%, Pakistan: 0%, Philippines: 15%, Poland: 10%, Portugal: 10%, Romania: 10%, Russia: 0%, Slovakia: 0%, Slovenia: 5%, South Africa: 0%, Spain: 5%, Sri Lanka: 10%, Sweden: 0%, Switzerland: 0%, Thailand: 5%, Trinidad & Tobago: 0%, Tunisia: 15%, Turkey: 10%, Ukraine: 10%, United Kingdom: 0%, Venezuela: 10%

    • Marta Tuchowska on January 6, 2016 at 8:26 am

      You can always start a UK Ltd or a US LLC and do publishing as a company. I will be adding more info to this article soon and ask Dave to update it:)

      • jocool on November 8, 2016 at 2:41 pm

        Hi Marta, Really useful article, thanks. Do you have any information about how it works publishing through a UK limited company?

        • Marta Magdalena on September 20, 2017 at 10:14 am

          It’s simple, you set up a UK LTD and fill in your Amazon account with your company details. US- UK – 0%. You pay your taxes in the UK (on your profit of course). You pay yourself a salary or dividents (which is a company expense). Make sure you talk to an accountant if you want to incorporate etc. I am not qualified to guide you on how to set up a company (even though I am incorporated). Everyone has a different situation. It’s better to invest in an accountant and save yourself headaches.

  41. Gaurav Kohli on June 3, 2015 at 8:15 am

    Hi,
    Thanks for this informative step by step post 🙂
    Just wondering, is there a way to receive the already withheld royalties which were calculated at 30%?
    Thanks!

  42. Michal on May 12, 2015 at 5:52 am

    In case of KDP it may be even simpler. I filled my Tax Information interview, provided a foreign (so from my country) tax id number, my personal data and consent to submit all these info via digital means. It took me 5 minutes and I’m now eligible for 10% withholding.
    I Poland the tax law is favorable for authors. It’s more benefitial to be an individual than a company.

    • Marta Tuchowska on October 13, 2015 at 6:19 am

      yes, true my brother lived in Poland when he first got started on kindle (now he is a full time digital nomad and he changes countries pretty often) he said the same during the first year when he was only making 1-2 K a month. Some people worry too much about starting a company but they still don’t really have any business. However, when you reach 5K a month or more, and you also have more expenses (marketing, covers, editing) it makes more sense to do it as a company. Otherwise you will pay way too much taxes as an individual (at least here in Spain where I live, but Poland is the same, very few people in Poland make more than $5K a month or more) This will be my next guest blog post if Dave asks me, lol:) Besides, as a company you can write off lots of stuff from your tax so you don’t end up paying that much (UK is a great place to register a company). But if you are only to publishing part-time, you don’t make more than 5K a month, and don’t have any other businesses like we do, then it may be better for you to do it all as an individual. It’s always a good idea to talk to a few international tax attorneys (I love them all!). You can shoot us a message on facebook. We have a few awesome contacts (taxes are now my passion, lol).

    • Marta Tuchowska on January 6, 2016 at 8:23 am

      It all depends on your income really. For me, it’s much more beneficial to operate as a company (I have a UK Ltd. which means 0% withholding in the US). All my friends from PL (or other European countries) who are successful online entrepreneurs also do their businesses (including publishing) as companies not individuals (as an entrepreneur you can choose where to register your company and UK is pretty good). But if you are just starting out, you can do it as an individual. Why not. it’s probably better for small royalty income. But if you are making serious money, sooner or later, you will need to consider registering a company. As an individual you will pay way too much personal income tax and you can’t write off costs that you can as a company (marketing, editors, VA’s and other freelancers, as a company I can even write off traveling, books, courses, seminars…+ the list goes on and on). It’s really important to get it right, most authors overlook it. I always advise people to talk to an accountant/tax attorney. Start as an individual but as soon as you start making money, upgrade to a company (then you will need to call IRS again and ask for a company EIN number). Again, UK Ltd is a fantastic option. Think as an entrepreneur.

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Hey Guys, I’m Dave and when I am not sipping tea with princesses or chasing the Boogey man out of closets, I’m a Kindlepreneur and digital marketing nut – it’s my career, hobby, and passion.

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