i’ve received a 1042-S form From USA. My question: is that a form for tax payment and if so how does it works? I’ve started now in Audiojungle, so i’ve not earned much: 16 sells and 34$ net (so i’still can not recive money on my bank account, cause the profit is less than 50$). I’ve searched a forum topic about but nothing clear.
Tax Information & Form W-8 Requirements for non US Authors:
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, otherwise, Envato are required to deduct royalty withholding tax of 30% on your sales to US customers.
This is the IRS tax information for US withholding tax paid in 2019.
If you paid this tax in 2019, but are exempt from it due to a tax treaty between your country and the United States, you can use this tax information as evidence in your tax return. Depending on the tax rules in your country, you can get a tax credit/refund from you tax office about this paid foreign taxes. If you are unfamiliar doing your own tax return then give this document to your tax advisor.