Authors are required to submit a W form to avoid paying Backup Withholding tax on all sales.
Complete a W form now to be ready for your first sale.
should we submit w form?
What happens if we do not fill form?
then you pay 24% Backup Withholding Tax tax to the USA on all your sales
I thought it was 30%?
Either way - it’s the right thing to do
30% is the US Royalty Withholding Tax rate on US sales (only on US sales) if tax infos are submitted but no tax treaty is applied.
US Backup Withholding Tax will apply if no tax information is submitted at all and will be applied to all sales. The rate was 28% and decreased to 24% on January 1, 2018