Sunday, March 23, 2014

Taxes, Taxes

Aaron got another edited copy of the book back to me and suggested some layout and design changes.  I did them and agreed that it made the book easier to read.  I also changed the cover and re-submitted for review on CreateSpace.

Now about taxes... it seems that if you are a non-US person that create space, smashwords, kindle, etc must withhold 30% of your royalties whenever they send you a payment.  Uncle Sam keeps this money since they think it was earned 'working' in the US.

I've just spent the last hour reading up on Employer Identification Numbers, Individual Tax Identification Numbers and other IRS documents and guides.  Apparently Canada has a tax treaty with the US and I can avoid this withholding tax.

I've sent an e-mail to my accountant to inquire if it makes sense to do all these registrations.  I don't want to avoid a 30% US tax just to remit the money here in Canada and possibly get taxed at an even higher rate.

We'll see what he says.

Now I'm excitedly awaiting the hard copy proof.  I'll do an un-boxing video when it comes in and share with you all.


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