Difference between Royalty withholding tax & Backup withholding


#1

What’s the difference between US royalty withholding tax & US backup withholding tax?


#2

I’m no tax wizard, but I’m under the impression that if you’ve not filled in a W8 form, then they’ll assume you are a US author and withhold 28% from all your sales, which would be classed as US backup withholding tax. If you’ve submitted a W8, then taxes would then be classed as US royalty withholding tax.

I could be wrong, but that’s my understanding of it!


#3

I think I got my answer. Thanks :slight_smile: