If you're a non-U.S. resident, you may be subject to withholding tax. The maximum rate is 30%, but a reduced rate, including exemption, may apply if there is a tax treaty between your country and the United States. Tax treaty rates are listed here.

How is tax withholding calculated?

The short answer is: we multiply your U.S. earnings by the appropriate tax rate, then subtract that from your total earnings and deposit it with the IRS. For a detailed example, keep reading.

For example, say you are a resident of Argentina. You earned $100, but only $50 of that was from U.S. subscribers (note that U.S. earnings will fluctuate depending on the number of U.S. subscribers downloading your products each month):

Total earnings               $100
Less: non-U.S. earnings     - $50
                           ------
U.S. earnings                 $50


Next, we multiply your U.S. earnings by the appropriate tax rate. In this example, the rate for residents of Argentina is 30%:

U.S. earnings                 $50
Tax rate                    x 30%
                           ------
Tax withholding               $15


Finally, we subtract the tax from your earnings:

Earnings                    $100
Less: tax withholding      - $15
                          ------
Payment                      $85


So $85 would be paid to you, and $15 would be withheld. Motion Array hands the $15 over to the IRS (the tax collecting agency in the United States).

It is important to note that if you did not provide a valid tax I.D. number in your tax form, you will be subject to 30% tax, regardless of your country's tax treaty rate.

If you believe an amount was improperly withheld from your payment, please contact us using the chat button at the bottom right-hand corner of your browser window.

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