An ITIN number is an international tax identification number assigned to an individual who is ineligible for a social security number, for example a foreign national residing and working in the US. ITIN number is essential in making sure everyone is paying their due taxes.
Some publishers based in the US require authors who are ineligible for a social security number to register for an ITIN number before they can get paid their royalties. In the case of self-publishers, companies like iTunes Connect, CreateSpace, Smashwords, etc, require you to submit an ITIN number in order to get paid as well. For self publishers who do not wish to wait for several months for their ITIN number to get paid, EIN is your solution.
EIN or the Employer Identification Number is the corporate equivalent to a social security number. EIN can be issued to anyone including individuals and entities that have to pay withholding taxes on employees.
Some of you may have noticed when signing up for a publisher account on some of the companies mentioned above, you are required to either enter your ITIN number or EIN number for tax identification purposes. EIN as it turns out is much quicker and easier to get then an ITIN number, and as a self publisher you are the publisher and the owner of your own company, hence eligible to use an EIN number instead of an ITIN number.
Applying For an EIN Number
Online application for obtaining an EIN number is preferred, even though you can apply through fax, mail and telephone, though telephone is restricted for international applicants.
- For those applying online, EIN can be obtained immediately after the information is validated during the online session. In order to be able to apply online, the applicant must have a Taxpayer Identification Number (Social Security Number, Employer Identification Number, or Individual Taxpayer Identification Number).
- Form SS-4 can be faxed by the applicants to their state FAX number, after the scrutiny of the Form SS-4 the entity or individual will be assigned an EIN and if a fax number was provided a fax will be sent within four working days with the EIN.
- Mail is probably the slowest method of obtaining an EIN. Form SS-4 must be completed and mailed. EIN application received by mail will be processed within four weeks.
- International applicant can call at 267-941-1099 (not a toll free number) from 6 am to 11 pm eastern time to obtain their EIN number.
Tax Exemption for Self Publishers
Many countries have agreed to mitigate effects of double taxation. If you are a non US resident, your US book sales will be subject to a 30% withholding tax. To avoid double taxation, you can apply for complete or part tax exemption. The amount of tax exempted depends completely upon the tax treaty your country has with the US. For example, if you are based out of the UK, you can apply for complete tax exemption.
Steps to Claim Complete or Reduced Tax Exemption
- Obtain an ITIN number, individual tax identification number, or an EIN employer identification number.
- Complete and send the form W8-BEN, to all of your US distributors, you will then receive your royalties in line with the tax exemption instead of them automatically withholding 30% of your royalties to pay taxes.
If you want to apply for an ITIN tax number and have any other questions, please feel free to contact us at 888-509-3616. If you have any suggestions please share those with us as well. Freedomtax ITIN Number has a professional team of IRS Certifying Acceptance Agents, and tax accounting professionals with more than 16 years of experience, helping immigrants with their ITIN application. Freedomtax can also help immigrant entrepreneurs incorporate a business in the USA. Freedomtax ITIN Tax Number Online services provides Quality, Professional Service with a Family Feel.