Amazon Kindle Direct Publishing withholds 30% of your royalties without a completed W-8BEN and ITIN. Authors from treaty countries like the UK pay 0%, Canada 5%, India 15%. Here's how to set up your ITIN, complete the tax interview, and keep more of every royalty dollar.
Apply Now — Only $99 →Amazon Kindle Direct Publishing pays royalties to authors worldwide. When an author is a non-US person, Amazon is required by the IRS to withhold US tax on those royalty payments before releasing them. The default withholding rate is 30%.
Amazon withholds because: (1) book royalties are classified as US-source income under US tax law, (2) the IRS requires Amazon to collect tax on behalf of foreign payees unless treaty documentation is on file, and (3) without a completed W-8BEN with a valid ITIN, Amazon has no documentation to apply a reduced rate.
The withholding rate Amazon applies depends on your country's tax treaty with the USA and whether you have submitted W-8BEN with a valid ITIN.
| Country | Without ITIN | With ITIN + W-8BEN | Annual Saving (on $10K) |
|---|---|---|---|
| 🇬🇧 United Kingdom | 30% | 0% | Save $3,000 |
| 🇩🇪 Germany | 30% | 0% | Save $3,000 |
| 🇳🇱 Netherlands | 30% | 0% | Save $3,000 |
| 🇦🇺 Australia | 30% | 5% | Save $2,500 |
| 🇨🇦 Canada | 30% | 5% | Save $2,500 |
| 🇲🇽 Mexico | 30% | 10% | Save $2,000 |
| 🇧🇩 Bangladesh | 30% | 10% | Save $2,000 |
| 🇮🇳 India | 30% | 15% | Save $1,500 |
| 🇵🇭 Philippines | 30% | 15% | Save $1,500 |
| 🇵🇰 Pakistan | 30% | 15% | Save $1,500 |
| 🇳🇬 Nigeria, 🇦🇪 UAE, 🇧🇷 Brazil, 🇬🇭 Ghana, 🇰🇪 Kenya, 🇸🇦 Saudi Arabia | 30% | 30% (no treaty) | ITIN still needed for W-8BEN + 1042-S |
Apply at itinplus.com ($99). IRS CAA certifies your passport via video call. ITIN arrives in 7–11 weeks.
Go to kdp.amazon.com → My Account (top right) → Tax Information → Update Tax Information.
Choose W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding). This confirms you are not a US person.
In the TIN field, enter your ITIN (format: 9XX-XX-XXXX). Select your country. If your country has a treaty, Amazon will display the applicable royalty rate for you to claim.
Amazon reviews and applies the treaty rate. Future royalties are paid at your treaty rate (0–15%). Withheld amounts from before your ITIN was on file can be recovered via Form 1040-NR.
If Amazon has been withholding 30% of your royalties while you didn't have an ITIN, you can recover excess withholding for up to 3 prior tax years by filing Form 1040-NR with the IRS. Amazon issues Form 1042-S each year showing the royalties paid and tax withheld — this is your documentation for the refund claim.
3-year lookback rule: You can file 1040-NR for 3 prior tax years. For example, if filing in 2026, you can claim refunds for tax years 2023, 2024, and 2025. Deadlines: each year's return has a separate 3-year claim deadline from the original filing due date.
| Amazon KDP (Royalties) | Amazon FBA (Product Sales) | |
|---|---|---|
| Income classification | Royalty income | Business income |
| Default withholding | 30% | 0% (with W-8BEN) |
| Treaty reduces rate? | Yes — 0–15% with ITIN + W-8BEN | N/A — already 0% |
| Form required | W-8BEN (individual) or W-8BEN-E (entity) | W-8BEN or W-8BEN-E |
| ITIN required? | Yes | Yes (or EIN for LLC) |
Get your ITIN, complete Amazon's tax interview, and start keeping 85–100% of your royalties depending on your country.
Apply for ITIN — $99 →| Provider | Price | IRS CAA? | Passport Mailing? |
|---|---|---|---|
| ITIN Plus | $99 — Lowest Price | ✅ Yes | ❌ No |
| ITINSERVICES.com | $160 (+61%) | ✅ Yes | ❌ No |
| ein-itin.com | $245 (+148%) | ❌ Outsourced | ❌ No |
| TheITIN.com | $348 (+252%) | ✅ Yes | ❌ No |
Yes. Amazon withholds 30% of royalties from non-US authors who have not completed the W-8BEN tax interview with a valid ITIN. With an ITIN and W-8BEN on file, treaty countries' rates apply (0–15%). The withholding is sent to the IRS — not held in escrow — but can be recovered via Form 1040-NR for up to 3 prior years.
Step 1: Get a US ITIN from ITIN Plus ($99, 7–11 weeks). Step 2: Log in to KDP → My Account → Tax Information → Update. Step 3: Complete W-8BEN with your ITIN and select your country. Amazon applies the reduced treaty rate from that point forward.
Yes — for up to 3 prior tax years. Amazon issues Form 1042-S each year documenting withholding. File Form 1040-NR with the IRS using your ITIN to claim excess withheld royalties. The IRS refunds the difference between what was withheld and your actual US tax liability under the treaty.
UK, Germany, Netherlands: 0%. Australia, Canada: 5%. Mexico, Bangladesh: 10%. India, Philippines, Pakistan: 15%. No-treaty countries (Nigeria, UAE, Brazil, Ghana, Kenya, Saudi Arabia): 30%. These rates require ITIN + W-8BEN to apply — without ITIN, Amazon defaults to 30% for all countries.
Yes. Even for no-treaty countries (where the rate stays at 30%), you still need to submit W-8BEN with your ITIN to: (1) document your foreign status for IRS 1042-S reporting, (2) prevent backup withholding on top of standard withholding, and (3) establish a record for Form 1040-NR filing if you want to claim any deductions against US-source income.
7–11 weeks through ITIN Plus. No passport mailing required. Once you receive your ITIN, complete the Amazon tax interview immediately — the reduced rate applies to the next royalty payment cycle.
Stop losing 30% of every royalty. One $99 ITIN pays for itself with the first royalty payment.
Start Application — $99 →