US Tax Compliance

Withholding Tax Rates by Country

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Understanding Withholding Rates and Treaty Benefits

Over 40 countries have favorable tax treaties with the United States that eliminate or significantly reduce withholding tax on your earnings from book sales. Most authors receive 100% of their earnings with zero US tax withholding.

Why Tax Compliance Matters

All US-based publishing platforms, including Amazon KDP, are required by US law to withhold taxes on payments to international authors.

For US tax purposes, the profit-share payments you receive are classified as "royalties" under IRS regulations. This doesn't change how we operate or what we pay you - it's simply the legal category the IRS uses for earnings from book sales. Royalties are subject to US withholding tax.

However, the United States has tax treaties with most countries that eliminate or significantly reduce this withholding. By completing a simple tax form (W-8BEN), you claim your treaty benefits and ensure you receive the maximum amount possible.

What We Need From You

To claim your treaty benefits and ensure proper withholding, you'll complete a short tax interview during signup - you'll be familiar with this from your Amazon account sign-up.

The W-8BEN is a standard IRS form that certifies you are not a US person, you are a resident of your country for tax purposes, and you claim tax treaty benefits.

We collect this information through a simple online form. No need to download PDFs or mail paperwork.

The form is valid for 3 years from the date you complete it. We'll remind you before it expires so you can renew.

Questions About Your Tax Situation?

If you have questions about your tax situation, we recommend consulting with a tax advisor in your country who specializes in international taxation.