We wanted to let you know about a change to the US BWT (United States Backup Withholding Tax).
As you may be aware, for authors who do not submit a W Form to Envato, we’re required to apply US BWT on the author’s worldwide earnings.
Effective 1 January 2018, the rate was reduced from 28% to 24%, as announced in an IRS Notice published in January 2018.
Envato continued to apply the US BWT rate of 28% on authors earnings with no W Forms until 18 May 2018. This means that some authors on Envato Market had an extra 4% tax withheld between January and May 2018.
We are refunding the authors the overwithheld taxes (ie 4% tax) this month (November 2018). This will be paid to your Envato Market payout account.
The US tax summaries we will provide to you in January 2019 will show the correct taxes at the correct rate of 24%.
We apologize for any inconvenience caused. We’ll be here for the next 7 days to answer any questions you might have in batches. Please remember our community guidelines when you post.