Australian Authors – Avoiding 30% US Tax

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:

  1. 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)
  1. 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)
  2. 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.


Post to:

Department of the Treasury

Internal Revenue Service

PO Box 149342

Austin, TX 78714-9342.