I am an Indian and live in India. I am a graphic designer. I make graphic designs and sell those at a online United State base retail site (like clothing t-shirts and many more merchandise) when my designs sell out I get a commission (royalty) from that products.

The US Site requires me to fill W-8BEN form for minimum withholding tax. I have already sent all information in my W-8BEN form. The US Site says one information is not correct. In Line 10 they need a reason for minimum withholding tax.

If I don't give the correct reason the US site will hold 30% tax on my earning. I have given then many reason but every time the reason is rejected.

Can someone tell me correct reason based on above, that I can write in my form line-10 to reduce the withholding tax. I have also mentioned my Foreign tax identifying number.

  • You're a foreign service provider, why on earth would they withhold? Tell them you'll sue them, should be a good enough reason for them. – littleadv Sep 24 '15 at 6:04
  • Read through this answer and gave a look at Article 12 of the relevant tax treaty. It looks to me as if you fall into category 3a, which means a 15% withholding. – Peter K. Sep 12 '16 at 10:55

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