US Royalty Withholding Tax


#1

Hello everyone! I filled W8 form
Then I get 33% every sale because US Royalty Withholding Tax is very high
How do I decrease it?


#2

Where are you from?


#3

You have to determine whether your country has a tax treaty with the US or not. In case it doesn’t then all of your US sales are subject to a 30% withholding tax. If your country does have a tax treaty though then you have to provide envato with a local Tax ID.


#4

You can’t!

Other sites, do have a much lower tax rate, but l won’t list them here, might get into trouble1

Well, Creative Market is one, but getting accepted by them isn’t easy, but possible.

:palm_tree:


#6

Should I change citizenship status ?
I am accepted CM then I don’t know How many sales on CM


#7

It only helps you if the country has a tax treaty with the United States and this country issued you a Tax ID that is suitable as foreign Tax ID

CM is also a registered US company, the same tax rules apply to CM.


#8

Thank you!


#9

The same rules apply, but it is up to the company how much tax they want to withhold, until the end of the financial year!

CM, is tough cookie to get a shop with, but if you manage to get a shop with them, then the tax withheld is lower than GR.

I won’t discuss sales, but CM is more than level with GR.

I obviously won’t go into details here since it isn’t appropriate!

:palm_tree:


#10

this US tax is really making it difficult to earn money out of sale. I don’t know any more when i sell 32$ template how much i get 8$ or 9$.

if US tax was only applied to only US customers that would be no problem. I wish Envato change it back to Australia


#12

Yes, l just checked CM, and they do take out the tax for other, non US countries!

Or don’t put in the tax thing, for other countries!

It seems that some company’s go full hog and some don’t!

:eyeglasses:


#13

Hello there,

How do I know if my country has as tax treaty with the US? Seeing how I got 7-8 bucks from a package of 3 songs that costs $28 was very, very disturbing! It’s possible that the guy who bought it makes million dollar commercials, and I get a few bucks, not even 50% of the price listed!


#14

If this is it, then Macedonia is not on the list. Now, what should I do - Watch how I get around 7-8 bucks for 3 compositions?


#15

Is that a rhetorical question or what? Yup. It sucks. Pretty much so.


#16

The real question is, “Can we do anything to change this?!”. I don’t think I’m going to post new music, since the payment I’m getting is disturbing. I’m opening a new topic and discussion about this.


#17

No, @PhiAudio, we have to play by the company’s rules, and from other conversations l have had elsewhere, about this, it isn’t tax withheld, but tax we have to give the US, for royalties, or something like that.

So it is my understanding that we won’t see it again, which does suck.

Hardly anyone new is doing flyers, since the profits are pretty dismal.

:open_mouth:


#18

This tax kills me.