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0% royalty tax.But don’t worry, there is good news.<a href="https://controller.richmond.edu/payroll/international/tax-treaty.html">The US government has signed various tax treaties with many countries that provide from 50% to 100% of exemption on this tax.</a> And if you’re a resident of one of these countries listed below then you must take advantage of these treaties and save your money.<figure id="5b9a"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*6FdsTV0XeJ-nolLVkRPwSg.png"><figcaption><a href="https://help.medium.com/hc/en-us/articles/360022952913-Filling-out-the-W-8BEN-and-W-8BEN-E-tax-form-for-nonresident-aliens-">Medium Help Center</a></figcaption></figure>To claim this treaty benefit you have to update a few things:-Go to your “Medium partner program” page and click on the link “Update taxpayer information”.Here just make sure that every detail is correct and press “next”. On the next step, you’ll have to select and fill the form “W-8BEN” as <a href="https://help.medium.com/hc/en-us/articles/360011582673-I-am-a-nonresident-alien-non-US-taxpayer-Which-tax-form-do-I-fill-out-">you’re a non-US individual</a>.Here it will ask you to enter all the required information, especially your “Foreign Tax Identifying Number”.After entering your tax ID next select the country of your residence and claim the treaty benefit available to you.If you are from countries like Canada and UK then you would get a tax exemption of up to 100%. However, for me, it was only a 50% discount. But I think something is better than nothing.<figure id="6718"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*f349pEZ7zRduAYsa0FNztw.png"><figcaption></figcaption></figure>After that just fill out the rest of the details and submit the form. Now come back to your Medium partner program page and make sure that the new tax rate is updated according to your treaty claim.<figure id="f50a"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*77l_mrw1Ku1pejJqchgrLw.png"><figcaption>Updated Tax Rate</figcaption></figure><div id="4a0a" class="link-block"> <a href="https://readmedium.com/google-tasks-a-simple-tool-to-start-your-productivity-journey-677b2eefda47">

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Do You Get Your Full Medium Earnings In Your Bank Account?

I don’t.

When I received my first three Medium earnings in my bank account, I saw a small deduction each time.

But as those were very small amounts like $0.13, $0.07, and $0.33, I didn’t bother to check much about it. I thought it would be some type of transaction charge.

But next when I made over $1 for the first time on Medium, I was very excited to receive my first whole dollar in my bank account after expecting a small transaction charge on it.

But it didn’t happen. There was a huge cut on the amount I received in my bank account.

This time it started to concern me and triggered me to find the reason behind these deductions.

And then I found this easily ignorable piece of information written in very tiny fonts on my “Medium partner program” page.

It was telling me that my earnings are subject to international tax withholding of 30% based on my taxpayer information and the country I live in.

For a while, I thought I’ll always lose 30% of my earnings but after doing some more research I figured out what this whole tax thing is and what changes do I need to make in order to reduce this tax.

So now let me explain it to you very quickly.

According to US tax laws, royalties earned from the US by any non-US person are subject to 30% royalty tax.

Here on Medium, every single article is the intellectual property of the respective writer and they earn money(royalties) for letting people read their work.

But as these royalties are originated from the US as Medium is a US-based company, these incomes are subject to 30% royalty tax.

But don’t worry, there is good news.

The US government has signed various tax treaties with many countries that provide from 50% to 100% of exemption on this tax. And if you’re a resident of one of these countries listed below then you must take advantage of these treaties and save your money.

To claim this treaty benefit you have to update a few things:-

Go to your “Medium partner program” page and click on the link “Update taxpayer information”.

Here just make sure that every detail is correct and press “next”. On the next step, you’ll have to select and fill the form “W-8BEN” as you’re a non-US individual.

Here it will ask you to enter all the required information, especially your “Foreign Tax Identifying Number”.

After entering your tax ID next select the country of your residence and claim the treaty benefit available to you.

If you are from countries like Canada and UK then you would get a tax exemption of up to 100%. However, for me, it was only a 50% discount. But I think something is better than nothing.

After that just fill out the rest of the details and submit the form. Now come back to your Medium partner program page and make sure that the new tax rate is updated according to your treaty claim.