How Do I Collect My Royalties If I’m Not A US Citizen?

If you earn money in the U.S., you must pay taxes on your income. U.S. tax law requires us to report royalty payments made to non-U.S. members and withhold and remit taxes on the royalty payments to the U. S. Internal Revenue Service (IRS). Although you may also need to report and pay taxes to your own government, we are not involved in this process.

Determining Tax Rates
The standard tax-withholding rate for non-U.S. members is 30%. If you are a non-U.S. member and your country has an established tax rate treaty with the U.S., you may be eligible for treaty withholdings rates if you provide us with a valid W-8BEN.
Here are some common tax withholding rates by country, which are subject to change without notice:

Canada: 0%
Australia: 10%
UK: 0%
Japan: 10%
India: 15%

For more information, see IRS Publication 515.

Obtain a U.S. Tax Identification Number (TIN). Individuals can apply for an ITIN using Form W-7. Businesses should apply for a Tax Identification NUmber (TIN) using Form SS-4. Both forms and how to apply for them can be found on the IRS website. If you are an individual applying for a TIN, you may also be required to submit a document to the IRS, which confirms your business relationship with FastPencil. We call this an IRS commitment letter. Please contact us to receive the commitment letter before applying for a TIN.

Enter your TIN/ITIN by going to your Project Dashboard and click on My Account link on the right hand column and click on Edit Account. Enter your TIN/ITIN in the field labeled Tax Information. Complete all other required fields on the page, then click Save.

Send us your completed W-8BEN form. A W-8BEN form states what country you reside in and which treaty, if any, determines your tax rate. Download and complete Form a W-8BEN in its entirety, including your ITIN/ITIN and FastPencil user ID,  and provide it to us either by mail or e-mail:

    FastPencil
    1608 West Campbell Ave #239
    Campbell, CA 95008
   
    ATTN: FastPencil Accounting
    email: kb@fastpencil.com

Neither a TIN/ITIN nor Form W-8BEN is required to receive royalty payments.  However, if you choose not to provide a W-8BEN, we will withhold 30% of your earnings for tax purposes regardless of any tax treaties your country may have with the U.S.

 

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