If you're a non-U.S. resident, you may be subject to U.S. 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?

You are only taxed on your earnings from U.S. subscribers. For example, if you are a resident of Argentina. You earned $100, but only $50 of that was from U.S. subscribers:

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 for taxes. 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 a 30% tax, regardless of your country's treaty rate.

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

Did this answer your question?