Withholding rates
The following information is based on the IRSInternal Revenue Service document "Publication 515 (2015), Withholding of Tax on Nonresident Aliens and Foreign Entities". Tipalti provides this information for your convenience only and takes no liability in the event that any of this information is incorrect. You are advised to consult with your tax specialist regarding this information.
Withholding rules
Withholding is based on the following rules:
- What is the tax form (W-8BEN, W-8BEN-E, W-8IMY, W-8ECI, W-8EXP)?
- Is the income US sourced?
- What is the payment for (i.e., what income type)?
- Is the tax form compliant to receive treaty benefits?
- What is the treaty country?
- Are there special withholding rates?
Withholding rates table
The following table lists the withholding rates for income type: "Royalties" or "Business Profit/ Other Income (Services)". All withholding rates display as percentages.
|
Country
|
Royalties: patents (INCOME CODE: 10) |
Royalties: film & tv (INCOME CODE: 11) |
Royalties: copyrights (INCOME CODE: 12) |
Servicesǂ (INCOME CODE: 23) |
|---|---|---|---|---|
Armenia* |
0 |
0 |
0 |
0^ |
Australia |
5 |
5 |
5 |
0^ |
Austria |
0^ |
10^ |
0^ |
0^ |
Azerbaijan* |
0 |
0 |
0 |
0^ |
Bangladesh |
10 |
10 |
10 |
0^ |
Barbados |
5 |
5 |
5 |
0^ |
Belarus* |
0 |
0 |
0 |
0^ |
Belgium |
0 |
0 |
0 |
0^ |
Bulgaria |
5 |
5 |
5 |
0^ |
Canada |
0^ |
10^ |
0^ |
0^ |
Chile |
10^ |
10^ |
10^ |
0^ |
China |
10 |
10 |
10 |
0^ |
Cyprus |
0 |
0 |
0 |
0^ |
Czech Republic |
10^ |
0^ |
0^ |
0^ |
Denmark |
0 |
0 |
0 |
0^ |
Egypt |
15^ |
0^ |
15^ |
0^ |
Estonia |
10^ |
10^ |
10^ |
0^ |
Finland |
0 |
0 |
0 |
0^ |
France |
0 |
0 |
0 |
0^ |
Georgia* |
0 |
0 |
0 |
0^ |
Germany |
0 |
0 |
0 |
0^ |
Greece |
0 |
30 |
0 |
0^ |
Iceland |
0^ |
5^ |
0^ |
0^ |
India |
15^ |
15^ |
15^ |
0^ |
Indonesia |
10 |
10 |
10 |
0^ |
Ireland |
0 |
0 |
0 |
0^ |
Israel |
15^ |
10^ |
10^ |
0^ |
Italy |
8^ |
8^ |
0^ |
0^ |
Jamaica |
10 |
10 |
10 |
0^ |
Japan |
0 |
0 |
0 |
0^ |
Kazakhstan |
10 |
10 |
10 |
0^ |
Korea, South |
15^ |
10^ |
10^ |
0^ |
Kyrgyzstan* |
0 |
0 |
0 |
0^ |
Latvia |
10^ |
10^ |
10^ |
0^ |
Lithuania |
10^ |
10^ |
10^ |
0^ |
Luxembourg |
0 |
0 |
0 |
0^ |
Malta |
10 |
10 |
10 |
0^ |
Mexico |
10 |
10 |
10 |
0^ |
Moldova* |
0 |
0 |
0 |
0^ |
Morocco |
10 |
10 |
10 |
0^ |
Netherlands |
0 |
0 |
0 |
0^ |
New Zealand |
5 |
5 |
5 |
0^ |
Norway |
0 |
0^ |
0 |
0^ |
Pakistan |
0 |
0^ |
0 |
0^ |
Philippines |
15 |
15 |
15 |
0^ |
Poland |
10 |
10 |
10 |
0^ |
Portugal |
10 |
10 |
10 |
0^ |
Romania |
15^ |
10^ |
10^ |
0^ |
Russia |
0 |
0 |
0 |
0^ |
Slovak Republic |
10^ |
0^ |
0^ |
0^ |
Slovenia |
5 |
5 |
5 |
0^ |
South Africa |
0 |
0 |
0 |
0^ |
Spain |
0 |
0 |
0 |
0 |
Sri Lanka |
10 |
10 |
10 |
0^ |
Sweden |
0 |
0 |
0 |
0^ |
Switzerland |
0 |
0^ |
0 |
0^ |
Tajikistan* |
0 |
0 |
0 |
0^ |
Thailand |
15^ |
5^ |
5^ |
0^ |
Trinidad & Tobago |
15^ |
0^ |
0^ |
0^ |
Tunisia |
15^ |
15^ |
15^ |
0^ |
Turkey |
10^ |
10^ |
10^ |
0^ |
Turkmenistan* |
0 |
0 |
0 |
0^ |
Ukraine |
10 |
10 |
10 |
0^ |
United Kingdom |
0 |
0 |
0 |
0^ |
Uzbekistan* |
0 |
0 |
0 |
0^ |
Venezuela |
10^ |
10^ |
10^ |
0^ |
Other Countries |
30 |
30 |
30 |
30 |
| * Countries to which the US-USSR income tax treaty still applies: Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan and Uzbekistan. | ||||
| ^ Reduced rates for income types that are shown as special rates and conditions while filling in the tax form. If the reduced rates are not claimed, 30% withholding is applied. | ||||
| ǂ The Business Profits article is applicable to payees completing the W-8BEN-E tax form. It is shown as special rates and conditions while filling in the form. If the reduced rates are not claimed, 30% withholding is applied. | ||||
W-8ECI
The withholding rates applicable to payees completing a W-8ECI tax form is as follows for the income type "Other Income (Services)".
- If the payee is an individual, the withholding rate is 30%.
- If the payee is a company, the withholding rate is 0%.