Over-withheld BWT Reversal for Authors

Hey all,

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.



It is a good news for Authors who has given 28% TAX. But I think 28% or 24% both are much TAX rate so will be best solution for Authors to fill up W8 form and submit TAX information so that they can save much more $.


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That’s mean for who don’t have a treaty with US taxes, the deduction will be 24% from each US buyers?


no W form submitted:

  • 24% Backup Tax on all sales

W-8 form without Tax ID submitted:

  • 30% Royalty Tax on US sales only

W-8 form submitted but no tax treaty:

  • 30% Royalty Tax on US sales only

W-8 form with Tax ID submitted and tax treaty:

  • reduced Royalty Tax (0%-30%) based on tax treaty on US sales only

Thanks for the clarification :smiley:, not happy news for me then, it will stay 30% :disappointed_relieved:

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