Today I obtained a EIN and submitted W-8BEN forms to Amazon, CreateSpace and SmashWords. Obtaining an EIN was required in order to submit the W-8BEN, and the W-8BENs were required in order to receive royalties from these U.S. based publisher/retailers, as a 30% withholding tax is otherwise applied to royalties before they're sent to an author. As Canada has a tax treaty with the U.S., all these forms permit us to receive royalties at a 0% tax withholding.
All this applies, of course, when you're not a U.S. resident and don't pay U.S. taxes. This must apply to a lot of people, since so many authors are pursuing this route in order to become published, including a lot of international authors.
You can learn more about the process at the following blog, where a few kind people have graciously documented a simple process for getting this done: http://catherineryanhoward.com/2012/02/24/non-us-self-publisher-tax-issues-dont-need-to-be-taxing/.
So glad to have finally done this. Another check mark on my "to do" list!
Monday, 18 March 2013
I'll also be at the Margaret Dunn Branch of the Caledon Public Library tomorrow at 1:00 pm to share my writing and publishing experiences and to offer copies of Death in the Forsythia (1st Ed.) and Grounds for Death for sale. I hope you're able to attend and look forward to seeing you there.