Why isn’t the reduced withholding tax rate on royalties applied under the US-Russia treaty?

Distribution Business
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1

Hello everyone,
I have a question about the taxation of royalties from a US company (Epic Games). According to the US-Russia tax treaty, the withholding tax rate on royalties should be reduced from 30% to a lower rate (e.g., 10-15%). However, in my case, the full 30% withholding tax was applied.

Could this be because I didn’t submit the correct paperwork (like the W-8BEN form)? Or are there any other reasons why the reduced rate might not be applied?

I would appreciate any advice on how to get the reduced rate applied and avoid overpaying taxes.

2

As far as I know, you need to fill out a W-8BEN. And don’t forget that the double taxation agreement was suspended by Russia in 2023, by the US in 2024. In Steam, for example, they are now taking an additional 30% from American sales.

Offtop: do you receive money in a Russian bank? Epic hasn’t been able to send me a payment for 5 months.