tax issue

[NAVIDESIGN]

I live in Dubai and UAE is a country free from tax, but still 30% tax of my all income withheld through the last year, I know the UAE and US have not tax treaty benefits, but my total sales weren’t on US sales.
so how can I fix this issue?

[PurpleFog]

You still need t fill the W8 form (you can find it in your dashboard’s settings tab). That way you won’t have to pay US taxes on your non-US sales.

[NAVIDESIGN]

I have filled the form but the 30% withhold has taken. is it 0% or 28% for non-US sales?

[PurpleFog]

It should be 0% for non-US sales if the form was correctly submitted. Only the US sales should be subjected to US taxes. If you’re getting taxed on your non-US sales as well, it means the W8 form was not correctly submitted.

[NAVIDESIGN]

OK, Thanks.

[baileyherbert]

I know the UAE and US have not tax treaty benefits

Envato has moved to the USA. If your country does not have a tax treaty with the USA, you’ll get taxed for all sales.

We’re Expanding to America. Important Tax and Withdrawal Changes for All Authors...

All Non-US Authors, Affiliates and Service Providers Must Complete a W-8 Form
From January 1st, 2016, when you sell to a US buyer, we’ll apply US Royalty Withholding Tax (US RWHT) on those sales only.

US RWHT rates range from 0% up to 30%, and depend on your country of residence and whether there is a tax treaty between your country and the US. We will apply US RWHT only on those sales made to US buyers.

In most countries, the US tax paid will count as a tax credit in your home country when you complete your tax return. Please speak to your tax advisor to understand how this works in your country.

[PurpleFog]

This is incorrect. If the W8 is correctly filled and submitted, non-US sales will not be taxed.