This is an important announcement to let you know about an error in the calculation of US royalty withholding tax for Vietnamese authors.
As you’ll likely be aware, Envato applies a 10% royalty withholding tax on sales from Vietnam-based authors to US customers.
The rate that we apply was taken from a recent agreement between the US and Vietnamese governments which provides for a reduced rate of 10% withholding tax on royalties. Upon learning of this treaty, Envato took the adjusted tax rates to be in full effect.
Unfortunately, we’ve recently learned that this isn’t the case.
Despite the existence of the agreement, it has not yet been ratified by the United States. The result of this is that Envato has been under-charging US royalty withholding tax to Vietnamese authors at a rate of 10% instead of 30%.
We will not attempt to recoup the cost from authors.However, we do need to ensure that the situation is rectified moving forward. As a result, we need to inform you that as of 8/9/2016 the royalty withholding tax for Vietnamese authors selling to US customers will increase to 30%. This will remain the case until the newly agreed upon treaty comes into force.
We apologise for all inconvenience caused as a result of this error.
Feel free to discuss the changes below, and if you have any questions at all about the error or the change you can reach us at taxinfo@envato.com.
What?! my partner in Vietnam has been charged 30% since 2016 Jan.
Why do you say only 10% for such a long time?
Eight months, dude. We lost thousands of USD of this royalty withholding tax for an unclear treaty? are you serious?
I think Envato need update the Earnings statistic page. Now it may not calculate US royalty withholding tax. So it make misunderstanding for author to know how many have they earned.
We can complaint to VN government and tell them that we need tax agreements to USA. But that’s very hard dream when no one wants to reduce tax for communism. This situation is because the gov, not Envato, don’t attack Envato.
As far as I know, tax of US authors is 30%, but they will receive a pension in future. Vietnam author won’t receive any pension from US, but still be tax 30%. It is not fair and ridiculous. Sadly for our authors from Vietnam. Please consider this carefully. Thank you!
Thank you for your quick response.
It doesn’t matter now as we all will be charged 30% for all buyers from US now until the VN gov has a better tax treaty with US gov. I doubt it won’t be soon.
Best to add it though, so you can benefit from the treaty straight away if and when it’s implemented. Sounds like it’s pretty much signed off but just has’t been put in action yet, so hopefully that will be soon.
Think Envato don’t calculate for support. But tax applied with support. Now we feel “don’t want buyer from US” we get only $16,56/59, but have more request support from US user. Whyyyyyyyyyyyyyyyyyyyyyyyyyyy
I think Envato need update the Earnings statistic page. Now it may not calculate US royalty withholding tax. So it makes misunderstanding for author to know how many have they earned.