Withholding tax


#1

Why do you guys withhold tax on affiliate commission?

Tax treaties are on royalties and an affiliate commission is not a royalty.

You guys are the only company i"m an affiliate for where you withhold tax and you shouldn’t be.

Clickbank doesn’t withhold because they know that royalties are not commissions and affiliate commissions do not all under a royalty.


#3

You missed my point. They withhold tax on those as royalties and affiliate commissions don’t fall under royalties.


#4

Some are… most aren’t. There’s several things that are subject to withholding taxes which aren’t royalties. Off the top of my head, two would be pensions and poker winnings. But if you have some information that specifically states that affiliate payments shouldn’t be subject to withholding tax… then by all means share that here and/or send it to support.

Or are you saying that affiliate earnings are being taxed by Envato using the rates for royalties… when they should be taxed using the rates for affiliate payments? If so, I’m assuming you’ve checked what the rates are for affiliate payments… they could be higher than the rates for royalties!


#5

i agree, but i think you need to fill out some info to get this lifted