Royalties and Tax Withholding

All creator revenue that meets the true and legal definition of a royalty is subject to withholding.

 

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

 

U.S. Domestic entities or individuals:

  • A US Domestic Entity is an individual, company or organization that typically (but not always) resides in the United States and is required to pay taxes to the government of the United States.
  • Complete and submit a W-9 form for Lulu to keep on file. A properly completed W-9 form provides your Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Federal Employer Identification Number (FEIN).
  • With a valid W-9 form on file, your withholding rate is 0%. If we have no W-9 form on file, your withholding rate is the default backup withholding rate for U.S. domestic entities as set by the Internal Revenue Service of the United States; currently this rate is 28%.

Foreign entities or individuals:

  • A foreign entity is an individual, company or organization that typically (but not always) resides outside of the United States and primarily pays taxes to a government other than the United States.
  • Withholding is waived when your published material is delivered, either physically or electronically, outside the United States.
  • When your published material is delivered, either physically or electronically, within the United States, the Royalties earned on these sales are subject to US withholding.
  • Non-US Lulu authors should complete and submit a W-8BEN form to remain on file with Lulu. A properly completed form provides us with your US, or non-us tax identification number and assigns you to a Resident Country.
  • With a valid W-8BEN form on file, your withholding rate is 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 the default backup withholding rate for non-US individuals or entities as set by the Internal Revenue Service of the United States. Currently this rate is 30%.

 

For more information, see

W-9 and W-8BEN Tax Form Submission

Tax and Withholding FAQ

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