Tag Archives: 33%

#Amazon, US #Tax and #Australian Citizens

meeka thumbs upAnything sold on Amazon – including self-published books – is subject to a 33% withholding tax.

This is a tax that Amazon must take out of the sale before you get your share.

This tax is applicable across the board and non-US citizens are not exempt.

 

Unless………..:

  • their country of origin has a trade treaty with the US
  • and they apply for an exemption under that trade treaty

As an Australian citizen, I am lucky enough to meet the ‘trade treaty’ criterion but until today, I did not apply for the exemption because:

  • I was not making enough money for it to matter, and
  • the process was just TOO HARD

I’m not sure what changed, or when exactly, but suddenly the process of applying for an exemption is so easy I’m still pinching myself in case I’m dreaming.

So what’s needed?

  1. Your country of origin must have a trade treaty with the US
  2. You must have an account with Kindle Direct Publishing [nah..really? lol]
  3. You must have a tax file number [or equivalent] from your country of origin

Seriously, that’s it. With those three things you can log into Kindle Direct Publishing and fill in a very VERY easy online form and you’re done.

  1. Log in to your KDP account
  2. Select My Account
  3. Select the option for Tax Interview
  4. Have your tax file number handy
  5. And start filling in the questions.
  6. When you get to the page that asks if you want to do an electronic signature* – select YES
  7. The electronic signature is nothing more than your typed name, email address [same as for logging into KDP] and ‘Submit’.
  8. Be sure to print off a copy at the end and you’re done.

If you’re anything like me, you’ll sit there scratching your head and wondering how you can send an electronic signature. Is there a special program you have to invest in to create such a signature? Or do you have to print the page off, sign it manually and then post it off? Hah!

The answer to all those questions is a big, fat NO. There appears to be no valid reason for doing things the hard way, so don’t.

Having procrastinated for years, literally, I am so relieved to finally have this Sword of Damocles removed from my halo. Thank you IRS and thank you Amazon! Now if only I could be paid via PayPal or EFT I’d be delirious with happiness…

-smack- Don’t be greedy, girl!

Much happy dancing,

Meeks

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