Yes, some royalties earned by Bahamian authors through Amazon KDP can be subject to 30% U.S. tax withholding.

But don't let that 30% figure put you off publishing on Amazon. It doesn't mean Amazon simply takes 30% from everything you earn.

This Isn't Just an Amazon Rule

The withholding comes from U.S. tax law, not a special charge Amazon created for international authors.

Generally, when U.S.-source royalties are paid to a non-U.S. person, U.S. tax law requires withholding at 30% unless a lower rate applies. Because The Bahamas does not currently have an income-tax treaty with the United States providing a reduced rate for these royalties, Bahamian authors can be affected.

The Good News: It Doesn't Apply to All Your KDP Sales

Amazon sells books through marketplaces around the world, and the U.S. withholding rules don't apply to every marketplace in the same way.

For example, Amazon currently identifies eBook sales on Amazon.com as subject to U.S. withholding for non-U.S. publishers. Certain print royalties from Amazon.com, Amazon.ca, Amazon.com.au and Amazon.co.jp are also included.

Sales through Amazon's UK and European marketplaces are not listed by KDP as subject to this U.S. withholding.

That's worth knowing.

Bahamian authors aren't limited to promoting their books to U.S. readers. Your marketing can also reach readers in the UK, Europe and other international markets.

Rather than allowing the tax issue to discourage you, understand where it applies and factor it into your publishing and marketing decisions.

Know What You're Earning

Tax withholding is only one part of understanding your book income.

GET PAID: A Practical Guide for Bahamian Authors brings together the payment, tax and receiving issues Bahamian authors should know when selling books internationally.

Spend less time trying to piece together the information—and more time getting your books into readers' hands.

GET THE BAHAMIAN GET PAID GUIDE. →