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Royalties and Tax Withholding

All author and creator revenue that meets the true and legal definition of a royalty is subject to US income tax withholding. Income earned from books published with Glasstree-owned ISBNs is considered a royalty and is therefore subject to US tax withholding.

If you own your own ISBN, your earnings are considered Other Revenue and are not subject to US tax withholding.

 

U.S. Domestic entities or individuals:

  • A US Domestic Entity is an individual, company, or organization that typically (but not always) resides in the United States and is required to pay taxes to the government of the United States.
  • Each payee must complete and submit a W-9 form for Glasstree to keep on file. A properly completed W-9 form provides your Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Federal Employer Identification Number (FEIN).
  • Current tax forms can be downloaded and submitted from the Payee > Tax Information step of the Glasstree publishing tool.
  • With a valid W-9 form on file, your withholding rate will be 0%. If we have no W-9 form on file, your withholding rate is the default backup withholding rate for U.S. domestic entities as set by the Internal Revenue Service of the United States; currently this rate is 28%.

Foreign entities or individuals:

  • A foreign entity is an individual, company, or organization that typically (but not always) resides outside of the United States and primarily pays taxes to a government other than the United States.
  • Withholding is waived when your published material is delivered, either physically or electronically, outside the United States.
  • When your published material is delivered, either physically or electronically, within the United States, the Royalties earned on these sales are subject to US withholding.
  • Non-US Glasstree authors should complete and submit a W-8BEN form to remain on file with Glasstree. A properly completed form provides us with your US, or non-US tax identification number and assigns you to a Resident Country.
  • With a valid W-8BEN form on file, your withholding rate is the percentage defined in the tax treaty between the U.S. and your Resident Country as appropriate for royalties. These rates vary by country.
  • Without a valid W-8BEN form on file, your withholding rate is the default backup withholding rate for non-US individuals or entities as set by the Internal Revenue Service of the United States. Currently this rate is 30%.
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