I sell artistic works on some US websites. I get a form 1042s annually indicating that 30% of my royalties are being withheld.
Is there any way to reduce this amount? For example, if I formed a US LLC is there a minimum amount that is not subject to this 30% withholding rate?
Is there any work-around for foreigners subject to 30% withholding tax?
byu/PatStutely intax
Posted by PatStutely
1 Comment
depends what you consider a “work-around”. unless you’re looking to evade united states taxes, the only thing you can do to reduce the withholding is to employ treaty benefits. quite a number of treaties feature 0% withholding on royalties.