I’m not sure how exactly Epic is dealing with it (would be nice to have some official clarification!), but in general it looks like :
- You actually don’t sell anything per se. You provide content to Epic, and Epic sells it for you.
- There of, Epic pays their taxes from the 30% the get from product sales. And the rest (70%) is paid to you.
- Now since IRS doesn’t really know from where you are, and what are you doing, they automatically get hold on 30%, from the 70% that you earned. Since you have earned revenue trough US company. Even though you don’t live in US, you have no way to prove that, at point.
- If you don’t have ITIN you get 70% - 30% US withholding tax.
- It happens because well, you might actually live in US and pretend to be from Cambodia, to do not pay taxes in US (;.
- But if you have ITIN proving that are in fact from other country the withholding tax is returned.
Country specific taxes are taxes you pay in your country from 70% you get. How you deal with that is your problem.
I honestly dunno what that quoted statement means. It might be just bad wording, because for Epic to subject for your country specific taxes, they would have to be registered in country in first place. I think it is only about US withholding tax.