Tax and Withholding FAQ

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edited January 23 in Tax Withholding

Lulu employees cannot provide tax advice. We recommend you carefully research tax requirements for your locale and consult a tax attorney if you need additional assistance.

You will find answers to frequently asked questions about taxes and income tax withholding below.

Why do some of my books have withholding, while others don’t?

Only books with Lulu-owned ISBNs are subject to withholding. If you purchased and registered your own ISBN, your earnings are Other Revenue, not Royalties, and are not subject to US income tax withholding.

Why are only part of my creator revenues being withheld?

Only the subset of creator revenues which meet the true and legal definition of a royalty are subject to withholding. 

Why do I have to enter my tax ID number information?

Your royalty payments are taxable income. Although the borderline income level differs, depending on the country you live in, Lulu may be required to report your earnings to the taxation authority. So, before we pay you royalties, we must have a tax number for you or your business. 

To provide your individual tax ID number (ITIN) or employer ID number (EIN):

  1. Log into your account
  2. Go to My Projects > Payment Contacts
  3. Enter your Tax ID Number.
  4. Click Save Payee Information

Can I enter a corporate tax ID number instead of a personal one?

You may use a corporate name and tax identification number when you provide your remittance address. We report your earnings under the business number and name instead of your personal name and tax number. If you do not file a business tax return, please use your personal name and tax identification number.

What is the withholding rate for foreign entities?

With a valid W-8BEN form on file with Lulu, your withholding rate is set at the percentage defined in the tax treaty between the U.S. and your Resident Country as appropriate for royalties. These rates vary by country. Without a valid W-8BEN form on file, your withholding rate is 30%.

What about treaty benefits?

If you have a W-8BEN on file at Lulu with a valid Individual Taxpayer Identification Number (ITIN) or an Employment Identification Number (EIN) then you can claim treaty benefits.

See also:

Tax Treaty Overview

Claiming Tax Treaty Benefits

For more information, see

Royalties and Tax Withholding

W-9 and W-8BEN Tax Form Submission

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