Canadian bloggers and content creators in the Amazon Associates program have a significant tax advantage over most international affiliates. The Canada-US Tax Treaty can reduce affiliate commission withholding to 0% for Canadians — but only if you have an ITIN to claim the treaty benefit.
How the Canada-US Treaty Applies to Amazon Commissions
Amazon Associates commissions may be classified as royalties or business income under the Canada-US Tax Treaty. The treaty can reduce the withholding rate from 30% to 0–15% depending on how the income is categorized. Canadians can typically claim a reduced rate and in many cases 0% withholding.
Without an ITIN, Amazon cannot process your treaty claim and defaults to 30% withholding. Your ITIN is the key to making the treaty work for you.
Updating Amazon Associates Tax Information
In your Amazon Associates account:
- Go to Account Settings → Tax Information
- Select 'Non-US person'
- Enter your ITIN
- Claim the Canada-US Treaty benefits
Amazon processes the update and reduces withholding on future commission payments.
Payment Options for Canadian Associates
Amazon Associates pays Canadian affiliates via check, Amazon Gift Cards, or direct deposit to a US bank account. Many Canadian Associates set up a US LLC with Mercury Bank to receive direct deposit payments in USD, which are then transferred to Canadian bank accounts when needed.
ITIN Plus for Canadian Amazon Associates
$99, 8–14 weeks, IRS Certified Acceptance Agent. Email apply@itinplus.com to get your ITIN and start keeping more of your Amazon commissions.
Frequently Asked Questions
Does Amazon withhold taxes from Canadian Associates?
Yes. Without an ITIN and treaty claim, Amazon withholds 30% from commissions. With ITIN and the Canada-US Tax Treaty, withholding is reduced — potentially to 0% depending on income classification.
How do I submit my ITIN to Amazon Associates?
Go to Amazon Associates Account Settings → Tax Information. Select non-US person, enter your ITIN, and claim Canada-US Treaty benefits. Amazon updates withholding on future payments.
How long does it take to get an ITIN?
8–14 weeks from the IRS submission date. Apply through ITIN Plus for $99.
Can Canadian affiliates receive Amazon payments by direct deposit?
Amazon Associates direct deposit works with US bank accounts. Canadian affiliates typically use a US LLC with Mercury Bank to receive direct deposit, then transfer to Canada.
What withholding rate applies to Canadian Amazon affiliates?
With ITIN and treaty claim, many Canadian affiliates achieve 0–15% withholding depending on income classification. Without ITIN, the default is 30%.