Avoiding – 30% USA withholding tax on book sales.
Do you need a US ITIN to publish your books on Amazon KDP, CreateSpace, Smash words. Or similar.
If you don’t want to pay the 30% withholding tax – the answer is yes.
With an ITIN you can apply to claim a reduced tax withholding rate for royalties – per the US/Australia tax treaty – of 5%.
Applying for a US ITIN in three simple steps.
Apply for an ITIN is fairly straight forward, but can seem complicated:
- You have to complete a form W-7 Application for IRS Individual Taxpayer Identification Number (Down load from the Internet)
- Enter treaty country (Australia) and treaty article number (12)
- Don’t forget the USA write their dates differently than we do in Australia (month/day/year)
- Provide a letter from Amazon or other USA publisher, saying you have an individual account established to receive royalties. (write to your publisher and ask for the letter)
- Provide your passport or certified copy (Certified copy must come from Department of Foreign Affairs & Trade and be signed in blue pen. – You don’t need an appointment to get a certified copy of your passport made – but do tell them what it is for. They know about the blue pen.
Department of the Treasury
Internal Revenue Service
PO Box 149342
Austin, TX 78714-9342.