Was looking on IRS website (maybe I'm misinterpreting). But the below seems to mean that non US citzens who don't live in USA are supposed to file tax returns to IRS for Royalties from US based websites such as C4S![]()
Anyone else know know about this?
Tax Treatment of FDAP Income Which is Not Effectively Connected Income (ECI)
Tax at a 30% (or lower treaty) rate applies to FDAP income or gains from U.S. sources, but only if they are not effectively connected with your U.S. trade or business. The 30% (or lower treaty) rate applies to the gross amount of U.S. source fixed or determinable, annual or periodical gains, profits, or income. Deductions and netting are not allowed against FDAP income.
The following items are examples of FDAP income:
- Compensation for personal services (such as commissions and gross proceeds from performances)
- Dividends
- Interest
- Original issue discount
- Pensions and annuities
- Alimony
- Real property income, such as rents, other than gains from the sale of real property
- Royalties
- Scholarships and fellowship grants
- Other grants, prizes and awards
- A sales commission paid or credited monthly
- A commission paid for a single transaction
- The distributable net income of an estate or trust that is FDAP income, and that must be distributed currently, or has been paid or credited during the tax year, to a nonresident alien beneficiary
- A distribution from a partnership that is FDAP income, or such an amount that, although not actually distributed, is includible in the gross income of a foreign partner
- Taxes, mortgage interest, or insurance premiums paid to, or for the account of, a nonresident alien landlord by a tenant under the terms of a lease
- Prizes awarded to nonresident alien artists for pictures exhibited in the United States
- Purses paid to nonresident alien boxers for prize fights in the United States
- Prizes awarded to nonresident alien professional golfers in golfing tournaments in the United States
- Payments to U.S. parties when an nonresident alien entertainer has rights to the performance



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