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Permlink Replies: 4 - Pages: 1 - Last Post: May 12, 2017 5:53 AM Last Post By: Steafan McLough... Threads: [ Previous | Next ]
Steafan McLough...

Posts: 3
Registered: 05/10/17
Help with the Tax form
Posted: May 10, 2017 10:06 AM
 
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I am filling out the KDP profile and got to the part where I need to fill out tax information. I am a little confused as to why I need to pay 30% of my royalties to the American IRS while I am a resident of the UK (Irish citizen, I have nothing to do with America, I pay my taxes to HM Revenue and Customs). I am neither a US citizen, nor subject to their laws, nor a part of nor representative of a corporation I'll be publishing on the part of that is.

I specified I am not a US citizen on the form and I specified that I don't have a TIN. So why exactly am I being told this:

"Based on the information you provided, your Royalty payments will be subject to 30% U.S. withholding tax once your taxpayer identification form has been processed and validated."

I understand many countries signed on to FACTA so USA can effectively tax its citizens abroad, but why should I pay a 30% withholding tax to the IRS when I am not beholding to them? Or am I misunderstanding something altogether? Have I made a mistake in completing the form for completion's sake?

Also correct me if I am wrong, but Amazon takes 30% of whatever earnings made from the sale of an Ebook for themselves, (leaving the Publisher 70%) and then we have to pay 30% of the remaining royalties to the American IRS?

Edited by: Steafan McLoughlin on May 10, 2017 10:10 AM
Emily Veinglory

Posts: 3,379
Registered: 04/25/13
Re: Help with the Tax form
Posted: May 10, 2017 10:24 AM   in response to: Steafan McLough... in response to: Steafan McLough...
 
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You have to enter your UK tax number, which is as I recall your National Insurance number.
Steafan McLough...

Posts: 3
Registered: 05/10/17
Re: Help with the Tax form
Posted: May 10, 2017 10:46 AM   in response to: Emily Veinglory in response to: Emily Veinglory
 
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That seems to have resolved the issue. Sorry for the trouble, I didn't think my NIN would have counted as a TIN.
Notjohn

Posts: 23,002
Registered: 02/27/13
Re: Help with the Tax form
Posted: May 10, 2017 10:52 AM   in response to: Steafan McLough... in response to: Steafan McLough...
 
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I have nothing to do with America,

You certainly do, since you are hoping to publish through an American software company most of whose sales are in the United States.

However, not to worry, if you have a British tax ID (usually your National Insurance card number) you simply enter that and your withholding rate will be set to zero.

I suspect but am not certain that the same is true for Irish citizens, but in any event Amazon doesn't much care about your citizenship, only the jurisdiction to which you pay taxes.

Good luck! -- NJ

The book: Notjohn's Guide to E-Book Formatting (and print as well!)

The blog: http://notjohnkdp.blogspot.com
Steafan McLough...

Posts: 3
Registered: 05/10/17
Re: Help with the Tax form
Posted: May 12, 2017 5:53 AM   in response to: Notjohn in response to: Notjohn
 
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I realise that and I apologise for my stupidity. I may be an Irish citizen, but as stated (due tot he legal weirdness of my jurisdiction) I pay taxes to the British government and have a NI number, and have since rectified my situation. Nonetheless thank you for your help.
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