You are not required to update your tax documentation, but if you have no tax documentation, we are required by the U.S. Government to withhold 30% of your royalties earned from sales made by U.S. customers. There is no withholding tax for sales made by non-U.S customers.
Reducing Your U.S. Tax
Good news! It is possible to reduce, or even eliminate, tax on U.S. sales.
The U.S. has tax treaties with a number of foreign countries. Under these treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate, or are exempt from U.S. taxes.
Requested Tax Information
TurboSquid has conducted a rigorous analysis of its obligations to the IRS. The tax experts that we consulted have advised us that in order to be fully compliant with the Internal Revenue Code, TurboSquid is required to file an information return with the IRS on behalf of all artists. To do so, we must collect the following information:
U.S. Person or Organization
If you are a U.S. person or organization, you will need to provide us with your name, address, and Social Security Number (SSN) or your Employer Identification Number (EIN). As a U.S. person or organization you are entitled to a 0% withholding rate. This rate will be applied after we have validated your Tax Identification Number against the IRS database.
Completing the step-by-step tax interview will generate a completed IRS W-9 form, which you can print from the tax center and keep for your own records. For more information about the W-9 form and request for your taxpayer identification number, please review the W-9 help article on the IRS website.
Non-U.S. Person or Organization
If you are a non-U.S. person or organization, you will need to provide us with your name, address, date of birth, and Tax Identification Number also known in some countries as your National Security Number or Personal Identification Number. If you have previously filed with the IRS and have been provided with an Individual Tax Identification Number (ITIN), you should also provide this information. The rate of withholding depends on your country of residence.
Completing the step-by-step tax interview will generate a completed IRS W-8BEN form for individuals and IRS W-8BEN-E form for companies, which you can print from the tax center and keep for your own records. For more information about these forms, please review the W-8BEN article and W-8BEN-E article on the IRS website.
Tax Document FAQ
Where can I find a list of U.S. tax treaty rates?
Where can I see if my sales was from a U.S. customer?
Why doesn’t TurboSquid pay withholding out of the company’s share of the sale?
Why can’t TurboSquid and the IRS fix the tax issue?
Which sales are subject to 30% tax withholding?
Do I earn interest on taxes held?
Does TurboSquid keep any money that artists pay in taxes?
How does TurboSquid know that the buyer is in the U.S?
What is a 1042-S form?
What is a 1099-Misc form?