Understanding Withholding Rates and Treaty Benefits
Over 40 countries have favorable tax treaties with the United States that eliminate or significantly reduce withholding tax on your earnings from book sales. Most authors receive 100% of their earnings with zero US tax withholding.
Why Tax Compliance Matters
All US-based publishing platforms, including Amazon KDP, are required by US law to withhold taxes on payments to international authors.
For US tax purposes, the profit-share payments you receive are classified as "royalties" under IRS regulations. This doesn't change how we operate or what we pay you - it's simply the legal category the IRS uses for earnings from book sales. Royalties are subject to US withholding tax.
However, the United States has tax treaties with most countries that eliminate or significantly reduce this withholding. By completing a simple tax form (W-8BEN), you claim your treaty benefits and ensure you receive the maximum amount possible.
Select your country's first letter:
Verify Your Rate
Always verify the most current rates with these authoritative sources: