Withholding tax percentage clarification.

themeforest

#1

I am a non-us author. I haven’t submitted my tax information yet. Without my tax information Envato cut 24% on each sale. If I submit my tax information whether Envato will reduce the withholding tax percentage or not?


#2

Hi,

If you are an author, your earnings will be subject to US backup withholding tax of 24% if you do not submit your tax information. It does not matter if you are a non-US person, your earnings will be subject to 24% backup withholding tax if you do not provide your tax information.

as a non us author you will find all of information about tax from here

take a look on this article hope your find your answer well.

Thanks!


#3

If I provide my tax information of my country, suppose Bangladesh. So then Envato will not cut the 24% backup withholding tax?


#4

If you submit the form with your TAX information then only tax will be taken for US sale and TAX percentage depends on your country.
US Tax Treaties:


#5

Yes they will not cutting extra 24%.
But they must getting 15% us tax fees.


#6

Don’t forget to submit in the W-8 form your domestic tax-id as foreign tax id, otherwise you don’t benefit from the USA-Bangladesh tax treaty of 10%. on US sales. Without the tax-id you have to pay 30% on US sales.