Amazon Kindle Direct Publishing (KDP) is a powerful platform for Bangladeshi authors to publish books globally and earn royalties in USD. However, Amazon automatically withholds 30% of your royalties if you don't provide a valid Tax Identification Number. An ITIN eliminates this withholding entirely, letting you keep every dollar you earn.
How Amazon KDP Withholds Royalties
Amazon KDP is a US company and treats royalty payments to non-US authors as US-source income. Without a Tax ID, Amazon applies a 30% withholding rate — the standard IRS rate for foreign persons. This is deducted before you receive your royalty payment.
For example, if you earn $1,000/month in KDP royalties, Amazon sends you only $700 and keeps $300 for the IRS. Over a year, that's $3,600 lost unnecessarily.
How an ITIN Stops the Withholding
When you provide your ITIN on Amazon's tax interview (in KDP account settings), you also complete a W-8BEN form. This certifies you as a non-US person. Amazon then stops withholding the 30% on your royalties from US buyers.
Note: Bangladesh does not have a comprehensive income tax treaty with the US. However, the W-8BEN certification of foreign-person status is sufficient to eliminate the mandatory withholding for most royalty categories.
Steps to Complete Amazon KDP Tax Interview
Once you receive your ITIN from the IRS (through ITIN Plus), you:
- Log in to your KDP account
- Go to Account Settings → Tax Information
- Click 'Complete Tax Interview'
- Select 'Individual' and 'Non-US person'
- Enter your ITIN in the TIN field
- Sign the W-8BEN declaration
Amazon will verify your ITIN and update your withholding status within a few days. Future royalty payments will be paid at 0% withholding.
ITIN Plus for Bangladeshi KDP Authors
ITIN Plus serves Bangladeshi KDP authors across genres — fiction, non-fiction, academic, Bangla-language works published in English, and more. Our $99 flat fee covers the full ITIN application process: document review, Form W-7 preparation, and direct IRS submission. Processing takes 8–14 weeks. Contact us at apply@itinplus.com.
Frequently Asked Questions
Does Amazon KDP withhold 30% from Bangladeshi authors?
Yes. Without a valid Tax ID (ITIN) on file, Amazon KDP withholds 30% of royalties from non-US authors, including those from Bangladesh. Providing your ITIN via the W-8BEN form eliminates this withholding.
Does Bangladesh have a tax treaty with the US that reduces withholding?
Bangladesh does not have a comprehensive income tax treaty with the United States. However, submitting a W-8BEN with your ITIN certifies your foreign status, which eliminates the default 30% withholding for non-US persons.
How do I update my tax info on Amazon KDP?
Log in to KDP, go to Account Settings, then Tax Information, and complete the Tax Interview. You'll enter your ITIN and submit a W-8BEN form to update your withholding status.
How long does it take to get an ITIN?
8–14 weeks from the date ITIN Plus submits your Form W-7 to the IRS. We'll notify you as soon as your ITIN is issued.
What if I publish books in multiple pen names?
Your ITIN is linked to your personal identity, not to specific pen names. You can use a single ITIN for all your KDP accounts (as long as they are under your real identity) and complete the W-8BEN once per account.