-$1.80 US Royalty Withholding Tax

What is this tax? (-$1.80 US Royalty Withholding Tax)

It will reduce every sale made on $6 sale…

It’s a US tax. You need to submit the tax form with a valid Tax ID so that this tax is not applied to non-US sales. Depending on your country and whether it has a tax treaty with the US, you may be able to reduce or waive it altogether on US sales as well.

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For reducing US backup withholding tax (24%) you should to submit your TAX information form. If you submit the form with your TAX information then only tax will be taken for US sale and TAX percentage depends on your country.
US Tax Treaties:

Otherwise you have to give US backup withholding tax (24%) for all of your sale.

But for getting that tax facility you have to provide TAX information through settings=>tax information. When you complete your tax information, you must also provide Tax Identity Number.


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I am not a US person. So do I need to pay this tax?

I am not a US person so will reduce this tax for every sales made in US?

yes for non us person you should to submit TAX information through settings=>tax information
and it will reduce your tax for your country as far I know 10%. So it will save 24-10=14%

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Thank you.

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You have paid “US Royalty Withholding Tax”, that means you already submitted your tax info, otherwise you would pay “US Backup Withholding Tax” but you don’t provided your domestic TAX-ID and therefor you pay the 30% on US sales. $6.00 * 0.30 = $1.80.

According to your profile, you are from Sri Lanka, and Sri Lanka has a tax treaty about 10% for Royalties with the USA. To benefit from this treaty you must also proivide your domestic TAX-ID as foreign Tax ID in the W-8 form. If TAX-ID is correct: $6.00 * 0.10 = $0.60


If I provide ITIN number will my existing deduction will be refunded ?

Not once it’s been deducted or taken as part of a previous payout