Banking & Taxes Made Simple for Amazon KDP Authors Worldwide

byJohnMaluth

447 followers

4 months ago

Once your Amazon Kindle Direct Publishing (KDP) account is created, the next step is setting up your banking details and completing your tax interview. Without this, you can’t get paid! This guide will help you do it right—whether you’re in the U.S., Africa, Asia, or anywhere else.

Step 1: Understand How KDP Pays You

KDP pays monthly royalties around 60 days after the end of the sale month. Payments depend on your country’s available options:

• Direct Deposit (EFT): Fastest, most reliable, available in most countries.
• Wire Transfer: For regions without EFT support.
• Check (cheque): Only for some countries; slow and less reliable.

💡 Pro Tip: Always choose direct deposit if your bank supports it. Payments usually clear within 1–5 business days after they’re released.

Step 2: Add Your Bank Details

1. Go to Your Account → Getting Paid.
2. Select Add a bank account.
3. Enter:
4. • Bank name
   • Account holder’s name (must exactly match your KDP legal name)
   • Account number/IBAN
   • Routing code/SWIFT (for international accounts)

Important: If the names don’t match, Amazon won’t validate your bank.

Step 3: Complete the Tax Interview

KDP requires every author to complete a tax interview:

• U.S. authors: Fill in a W-9 form with your SSN or EIN.
• Non-U.S. authors: Fill in a W-8BEN (individual) or W-8BEN-E (business).

Why it matters

• If you don’t submit tax info, Amazon withholds 30% of your royalties.
• With the right form and tax treaty claim, you may pay 0–15% instead.

Step 4: Tax Treaty Benefits

Many countries have tax treaties with the U.S. (e.g., UK, Canada, India, South Africa).

• To claim benefits, you’ll need your local tax ID or a U.S. ITIN/EIN.
• Example: Without a treaty, Amazon withholds 30%. With a treaty, you may pay only 10%.

💡 Pro Tip for Non-U.S. Authors: Apply for a U.S. ITIN or EIN if your local tax ID isn’t accepted.

Step 5: Save and Confirm

Once done, KDP will confirm your tax and banking status as “Complete.” That means you’re officially set up to receive royalties worldwide.

Troubleshooting

• Bank validation failed? Double-check account number/IBAN and SWIFT.
• Payment delayed? Check your payment threshold (minimums apply: usually $100 for checks, $10–$25 for EFT).
• Tax interview rejected? Review your form and resubmit—KDP allows you to edit anytime.

Next in the Series

Up next, I’ll show you how to prepare your manuscript and cover using easy tools (like Kindle Create and Canva), so your book looks professional before it goes live on Amazon.