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
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.