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Thread: Payment in New Zealand


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Permlink Replies: 10 - Pages: 1 - Last Post: May 19, 2013 7:05 PM Last Post By: findlaybooks
fitandtoned

Posts: 4
Registered: 09/08/12
Payment in New Zealand
Posted: Sep 8, 2012 1:07 AM
 
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Hi guys. I am new here and just published my first book. I am wondering if there are any New Zealand authors around. If yes, could you please help me understand how is the payment made for us, New Zealanders. I noticed that we don't have the direct payment into account piton, so I guess that we would have a checque posted. Is that the case? Thanks! :)
orkneyislander

Posts: 41
Registered: 10/17/09
Re: Payment in New Zealand
Posted: Sep 12, 2012 2:32 PM   in response to: fitandtoned in response to: fitandtoned
 
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I'm a NZ author. Yes, payment has to be by cheque for us. I've contacted Amazon in the past and they advised that is the case but hopefully this may change in the future with payments to NZ accounts.
I'd also looked at the option mentioned in the previous post - but there is a charge for the service and decided that it was a better deal to receive the paper cheque. Especially if your royalties are not large enough to warrant extra deductions.
fitandtoned

Posts: 4
Registered: 09/08/12
Re: Payment in New Zealand
Posted: Sep 12, 2012 10:43 PM   in response to: orkneyislander in response to: orkneyislander
 
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Many thanks. Have you applied for an ITIN no with IRS to lower the tax from 30 to 5%? :)
Gary Bartlett

Posts: 1
Registered: 12/27/12
Re: Payment in New Zealand
Posted: Dec 27, 2012 11:17 AM   in response to: orkneyislander in response to: orkneyislander
 
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Hi. Are you able to cash/deposit the cheques in NZ? Local branch or some other way?

Thanks very much!

Gary
wirdmonger

Posts: 118
Registered: 01/07/12
Re: Payment in New Zealand
Posted: Jan 14, 2013 12:14 AM   in response to: fitandtoned in response to: fitandtoned
 
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I too would be interested in the process to reduce the tax.

Amazon take between 30 and 65 percent of my sales and its not great if another American giant takes 30 percent of what is left. I frankly might as well give my book away.
wirdmonger

Posts: 118
Registered: 01/07/12
Re: Payment in New Zealand
Posted: Jan 14, 2013 1:36 AM   in response to: wirdmonger in response to: wirdmonger
 
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Darren Keelan

Posts: 2
Registered: 01/01/13
Re: Payment in New Zealand
Posted: Jan 14, 2013 1:35 PM   in response to: fitandtoned in response to: fitandtoned
 
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Seems good I too have just published my first book, Im planning on saving all profits :)
Darren Keelan

Posts: 2
Registered: 01/01/13
Re: Payment in New Zealand
Posted: Jan 14, 2013 1:36 PM   in response to: fitandtoned in response to: fitandtoned
 
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It all seems good I too have just published my first book, Im planning on saving all profits :)
mixus

Posts: 743
Registered: 06/19/12
Re: Payment in New Zealand
Posted: Jan 17, 2013 7:27 PM   in response to: wirdmonger in response to: wirdmonger
 
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To apply for a US ITIN number for residents in New Zealand.

Here’s the main IRS page with information on applying for an ITIN number: http://www.irs.gov/individuals/article/0,,id=96287,00.html

Here’s the W-7 form that you’ll need: http://www.irs.gov/pub/irs-pdf/fw7.pdf which you’ll need to send to:

Internal Revenue Service
Austin Service Center
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342

If you need assistance from the IRS you can try their Philadelphia Service Center office:

Tel: 267-941-1000 (not toll-free)
Fax: 267-941-1055

Other international IRS Offices: http://www.irs.gov/localcontacts/article/0,,id=101292,00.html

Or perhaps one of the listed US tax specialists in NZ (Note this list is only maintained as we receive information from those on it, some may no longer be qualified to provide US Tax advice or assistance): http://newzealand.usembassy.gov/contact_the_irs.html

Re. getting your passport notarized contact aucklandacs@state.gov

Bruce Thompson

Posts: 4
Registered: 01/06/13
Re: Payment in New Zealand
Posted: Jan 19, 2013 11:41 PM   in response to: mixus in response to: mixus
 
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An ITIN sounds like a lot of hard work!
I'm an aussie, sorry to barge in, and I'm waiting for my first cheque but I do have my EIN (not an ITIN but does the same thing).
The Employer Identification Number (you can be a sole trader) took me less than 10 minutes on the phone, I used my regular phone and the call cost $3.43. And I had the number!
5 % tax from now on!

The most accurate info from Amazon is at
Tax Information for Non-US Publishers
https://kdp.amazon.com/self-publishing/help?topicId=A1VDYJ32T5D3U4

Download the SS4 W8BEN forms from their links.
Scan the info but all you really need to know is here:
Reduce your Withholding Tax on Author Commissions from Amazon for Australian Authors
http://sharnyandjulius.com/reduce-your-withholding-tax-on-author-commissions-from-amazon-for-australian-authors/

If that seems sparse you can spend (waste) a few hours reading:
http://catherineryanhoward.com/2012/02/24/non-us-self-publisher-tax-issues-dont-need-to-be-taxing/
Full of good info especially in the comments but here is my summary:

  • So ring to get an EIN (Don't call Monday or Friday around 9.15 Philadelphia time - they start at 7.00am 11pm here)
  • say you want an EIN for a W8 BEN form or witholding tax

Step 1. Call the IRS at +1 267 941 1099 on Skype
  • phone menu select 3
- have SS4 file open and completed
- I didn't use the NATO code but if you're pedantic you get it at http://upload.wikimedia.org/wikipedia/commons/e/e0/FAA_Phonetic_and_Morse_Chart2.svg
  • when you get the paperwork fill in a W8 BEN and send to Amazon
(Australia and NZ have a tax treaty number of 12 so 5% tax rate in W8 BEN part II 10 - check it out for yourself on Table 1 page 41 of http://www.irs.gov/pub/irs-pdf/p515.pdf we are Royalties > copyright - the last column)
read the comments
  • No need to fill in a Tax return in the US as no tax is payable, it is already paid, Amazon looks after it.

My experience:
Best people to follow are Sharny and Julius see above

  • So I rang up, very late on the Monday night (Dec 10) and got through to Philadelphia with a guy with a strange accent - maybe Hispanic -, early on his Monday morning.
  • No waiting around, straight through.
  • He rushed though the final checking so there was one mistake on my paper form, my street should start with "F" but they had it with a "S".
  • I immediately got my EIN
  • He said the paperwork would take 2-3 weeks. It took until Jan 3 so just over 3 weeks despite wrong street name and Christmas rush.

Next time I would:
- print out and fill out the physical SS-4 and have it in front of me - just so I had all the details absolutely correct - or maybe use fax
- ask him to repeat bits of his "read back" just to make sure they were correct - he rushed through it

I posted a correction request back to the IRS January 7 and at the same time posted my "wet ink", (I used blue ink ) W8 -BEN to Amazon - the address is on the page above. This is so Amazon can show the IRS that I have passed all the hurdles.

I was helped in filling out the W8 BEN form by the (messy) example from Amazon's page (above) and there is a detailed section on the main blog post by catherinerynhoward (also above) but basically what Sharny and Julius had was enough.

I haven't heard back yet but the deed is done. and only has to be done once unless I move to the US (fat chance!)

Edited by: Bruce Thompson on Jan 20, 2013 12:03 AM
findlaybooks

Posts: 22
Registered: 07/11/12
Re: Payment in New Zealand
Posted: May 19, 2013 7:05 PM   in response to: Bruce Thompson in response to: Bruce Thompson
 
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Hi My name is Joy Findlay and I've been publishing on Amazon for over a year now. I've had all of my cheques posted to me (takes two months sometimes!!!) until about a month ago. I now have a GBP Citibank foreign currency account with a NZ local bank and all my payment will be going into that now. My cheques go into this account now and instead of taking 6 weeks (30 working days) to clear, they take two weeks at the most and cost me about $5. The account costs me $10 a month to maintain and I get to accesss it all online with internet banking. I can choose when to draw down on the GBP by watching the currencies and get more bang for my buck.

I am in the process of sorting out my US tax and will be applying for an ITIN number with a court Secretary verified copy of my passport. It doesn't take to long and yes, saving up to 25% will save me thousands each year. The reason I am applying for a ITIN number instead of an EIN number is because I am not a sole trader with Amazon, I am a sole trader for a business (Findlaybooks) I have started here in NZ. This means that I can claim expenses back on my IR3 - my rent, my internet and power, my stationary, domain names, cell phone charges and any other ebooks that I purchase for 'research and development'.

Hope this helps. If you are a kiwi author selling on Amazon, we'd love to see you on facebook. I have a forum for kiwi authors called The Write Stuff. Look us up please, we'd love to meet you.

Hope that helps,
Joy
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