Withholding rates
The following information is based on the Internal Revenue Service (IRS) 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 if any of it is incorrect. Consult your tax specialist for guidance specific to your situation.
Withholding rules
Withholding is based on the following:
- The payee's tax form (W-8BEN, W-8BEN-E, W-8IMY, W-8ECI, or W-8EXP)
- Whether the income is US-sourced
- The income type the payment is for
- Whether the tax form qualifies the payee for treaty benefits
- The payee's treaty country
- Whether special withholding rates apply
Withholding rates table
The following table lists withholding rates for the income types "Royalties" and "Business Profit/Other Income (Services)." All rates are shown as percentages.
| Country | Royalties: patents (income code 10) |
Royalties: film & TV (income code 11) |
Royalties: copyrights (income code 12) |
Services3 (income code 23) |
|---|---|---|---|---|
| Armenia1 | 0 | 0 | 0 | 02 |
| Australia | 5 | 5 | 5 | 02 |
| Austria | 02 | 102 | 02 | 02 |
| Azerbaijan1 | 0 | 0 | 0 | 02 |
| Bangladesh | 10 | 10 | 10 | 02 |
| Barbados | 5 | 5 | 5 | 02 |
| Belarus1 | 0 | 0 | 0 | 02 |
| Belgium | 0 | 0 | 0 | 02 |
| Bulgaria | 5 | 5 | 5 | 02 |
| Canada | 02 | 102 | 02 | 02 |
| Chile | 102 | 102 | 102 | 02 |
| China | 10 | 10 | 10 | 02 |
| Cyprus | 0 | 0 | 0 | 02 |
| Czech Republic | 102 | 02 | 02 | 02 |
| Denmark | 0 | 0 | 0 | 02 |
| Egypt | 152 | 02 | 152 | 02 |
| Estonia | 102 | 102 | 102 | 02 |
| Finland | 0 | 0 | 0 | 02 |
| France | 0 | 0 | 0 | 02 |
| Georgia1 | 0 | 0 | 0 | 02 |
| Germany | 0 | 0 | 0 | 02 |
| Greece | 0 | 30 | 0 | 02 |
| Iceland | 02 | 52 | 02 | 02 |
| India | 152 | 152 | 152 | 02 |
| Indonesia | 10 | 10 | 10 | 02 |
| Ireland | 0 | 0 | 0 | 02 |
| Israel | 152 | 102 | 102 | 02 |
| Italy | 82 | 82 | 02 | 02 |
| Jamaica | 10 | 10 | 10 | 02 |
| Japan | 0 | 0 | 0 | 02 |
| Kazakhstan | 10 | 10 | 10 | 02 |
| Korea, South | 152 | 102 | 102 | 02 |
| Kyrgyzstan1 | 0 | 0 | 0 | 02 |
| Latvia | 102 | 102 | 102 | 02 |
| Lithuania | 102 | 102 | 102 | 02 |
| Luxembourg | 0 | 0 | 0 | 02 |
| Malta | 10 | 10 | 10 | 02 |
| Mexico | 10 | 10 | 10 | 02 |
| Moldova1 | 0 | 0 | 0 | 02 |
| Morocco | 10 | 10 | 10 | 02 |
| Netherlands | 0 | 0 | 0 | 02 |
| New Zealand | 5 | 5 | 5 | 02 |
| Norway | 0 | 02 | 0 | 02 |
| Pakistan | 0 | 02 | 0 | 02 |
| Philippines | 15 | 15 | 15 | 02 |
| Poland | 10 | 10 | 10 | 02 |
| Portugal | 10 | 10 | 10 | 02 |
| Romania | 152 | 102 | 102 | 02 |
| Russia | 0 | 0 | 0 | 02 |
| Slovak Republic | 102 | 02 | 02 | 02 |
| Slovenia | 5 | 5 | 5 | 02 |
| South Africa | 0 | 0 | 0 | 02 |
| Spain | 0 | 0 | 0 | 0 |
| Sri Lanka | 10 | 10 | 10 | 02 |
| Sweden | 0 | 0 | 0 | 02 |
| Switzerland | 0 | 02 | 0 | 02 |
| Tajikistan1 | 0 | 0 | 0 | 02 |
| Thailand | 152 | 52 | 52 | 02 |
| Trinidad & Tobago | 152 | 02 | 02 | 02 |
| Tunisia | 152 | 152 | 152 | 02 |
| Turkey | 102 | 102 | 102 | 02 |
| Turkmenistan1 | 0 | 0 | 0 | 02 |
| Ukraine | 10 | 10 | 10 | 02 |
| United Kingdom | 0 | 0 | 0 | 02 |
| Uzbekistan1 | 0 | 0 | 0 | 02 |
| Venezuela | 102 | 102 | 102 | 02 |
| Other Countries | 30 | 30 | 30 | 30 |
1 Countries to which the US-USSR income tax treaty still applies: Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, and Uzbekistan.
2 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.
3 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
For payees who complete a W-8ECI tax form, the withholding rate for the income type "Other Income (Services)" depends on the payee type:
- Individual payees: 30% withholding
- Company payees: 0% withholding