All language subtitles for 7. How To Apply For An EIN and Reduce Your Tax Withholding Rate

So in this lesson, we're going to go through how to reduce tax withholding and how to apply for an

ETN, US tax laws require that US based companies like Amazon must withhold 30 percent of any non US

royalties, basically, if you are not American.

You just signed up for this by Amazon.

Amazon will automatically keep 30 percent of your earnings for tax purposes.

Luckily, the US has tax treaties with many countries around the world, which enables you to reduce

your tax withholding rates in some instances down to zero percent, which is the case in the UK.

Now, how would you know the tax withholding rate for your country?

It's simple.

You can either find that from the Internal Revenue Service IRS website or during your search by Amazon

application.

Your treaty benefits will be highlighted during your tax interview when you enter a tax ID number.

In most cases, individuals and companies will have a tax identification number issued by local governments.

But if you don't have one, for whatever reason, there's a fix.

You can apply for an employer identification number as an individual or as a company with a simple phone

call to the IRS.

Here's how to apply for an.

Step one called the IRS on the number shown on the screen and simply ask them for an in their office

hours are from seven a.m. to 10 p.m. US Eastern Time.

I suggest you call them early in the morning local time or at the end of their shift.

So you don't have to wait for too long step to provide some basic information.

They'll ask you for your name, surname, your address in case you operate as a company.

Make sure you communicate that and explain what your company does.

Step three provide the reason for the call.

They'll ask you for a reason for your call.

And these are the lines that you want to use.

So make sure you take note of them.

You can say I need an iron number to comply with the IRS withholding regulations or an anonymous person

and state your country of residence and your nationality.

Say, I'm not starting an entity in the US, I'm an individual and I need to fill my tax forms with

the US tax regulations.

My intention is to receive royalties from Amazon, that kind of thing.

I have recently started my Amazon account with Amazon and I have to comply with the IRS withholding

regulations.

And after that they'll ask you some other questions like are you going to be operating heavy machinery

in the US and stuff like that?

So just say no, only call them if you have good command of English.

Otherwise get someone to contact them on your behalf to make sure that you are not saying the wrong

things.

Step four, get your iron number, they will say over the phone.

So make sure you jotted down correctly on a piece of paper, then used it in the tin space in the text

interview section of your match by Amazon application.

If you already have an Amazon account, simply update your tax information with your new iPhone to reduce

your tax withholding rate.

It's that simple.