This is just a warning to other self published authors who might not be aware of the 30% tax withholding that’s applied to Non-US citizens royalty payments. This affects Amazon, Createspace etc. Maybe you’re a new self published author, or hoping to self publish in the near future. If so, read on and learn from my mistake…
When I checked my royalty payment due from Amazon US book sales and KENP pages read, I realised there was a 30% tax withholding fee. At first I thought it was a mistake, then I thought why the hell hadn’t I noticed it before? They don’t hide the fact from you, I just hadn’t paid any attention to that column until now. Looking down the list, each month I’ve been deducted 30% on my US royalties (haven’t told the husband yet!).
So I’ve spent the morning trying to find out what went wrong when I did the tax interview on Amazon back in 2015 and how I can rectify the issue. I’ve googled, checked forums and blog posts, cursed and pulled out my hair.
Finally, I re-did the tax interview on Amazon and Createspace and added my non-US tax reference. Now its showing as 0.0% tax withholding. It’s a huge relief and turned out to be a very simple solution. If only I thought to do it when I registered as self employed last year.
So this is a word of caution, although maybe I’m the only one silly enough not to check their royalty reports properly. I also want to ask a question of those more clued up than me on the whole royalty payment and tax process. Is there any chance Amazon will kindly refund me the 30% underpayments which started in June last year?
Does anyone know how to go about requesting that refund, or have you any experience of trying to get your money back?
If not, it’s back to google and the forums for me.
Suzanne Rogerson Fantasy Author 
I’m of no help, Suzanne – sorry! But sure glad you caught the mistake.
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Thank you. I do feel very silly, but hopefully others can learn from my mistake.
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No idea.
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I contacted KDP about the royalty payments right at the start because there was a mix up with the tax interview. Even if they don’t acknowledge you, keep contacting them, they’ll respond eventually
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Thank you, I’ll give it a go.
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Well done catching it now. Fingers crossed you can get your refund.
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Thank you, I’m currently waiting for their reply with everything crossed!
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OMG! Thanks for sharing Suzanne! This is definitely the sort of thing that would happen to me. I’m so saving this post!
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Glad to help.
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How did you manage to get your non-US tax reference? This is something all writers here in UK should know about, but they make it sound impossible…
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You can use your tax reference from your own country, which is not stated clearly on any of Amazon’s help pages that I could find.
As self published authors we should be registered and file tax returns. Even though few of us make enough money to pay tax after all the expenses of self publishing, we still need to register.
The benefit is you get a tax reference number which will stop you needing to pay tax in other countries.
Claiming back tax already paid is another issue! I need to apply to the IRS according to Amazon.
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Good to know, Suzanne!
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