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Where Taxpayers and Advisers Meet

Amazon Tax Interviews

hcaz
Posts:1
Joined:Wed Oct 27, 2021 8:41 pm
Amazon Tax Interviews

Postby hcaz » Wed Oct 27, 2021 9:03 pm

I am the sole director of a UK limited company which has been running for around 4 years. I want to set up an Amazon KDP account and fill out the tax interview so that I am compliant and also claim tax treaty benefits (I'm only considering selling in the UK but it seems I still have to fill this out or have 30% tax withheld). My questions are:

- Should my company be classed as a corporation? It also mentions another category called a disregarded entity but I don't think that applies; it seems to be how they categorise companies in the US and these entities submit their taxes on their personal tax returns (at least that's how I've interpreted it). Alternatively, it also says: '"Individual" includes Sole Proprietors or Single-Member LLCs where the owner is an individual' so I'm not sure if I need to tick Individual or Company.
- I don’t think I’m an intermediary agent - my company will have the right to publish any works and my company will receive any royalties.
- Is the non-US TIN value my company’s UTR number?
- I'm assuming that the company is receiving 'derived income' as it's not 'fiscally transparent'? I also think the limitation on benefits should be 'Company with an item of income that meets active trade or business test'

Does anyone have experience of filling these in?

Many thanks in advance.
H

robbob
Posts:3210
Joined:Wed Aug 06, 2008 4:01 pm

Re: Amazon Tax Interviews

Postby robbob » Thu Oct 28, 2021 9:51 am

I don't understand the full implications of KDP - but i am presuming that arrangement does not involve the setting up a new entity.

This being the case it seems too be a fairly simple answer - your business is trading as a limited company - "corporation" clearly seems to be the correct choice here
Alternatively, it also says: '"Individual" includes Sole Proprietors or Single-Member LLCs where the owner is an individual' so I'm not sure if I need to tick Individual or Company.
Your uncertainty here worries me slightly.

With regard to your limited company its a separate legal entity from you - you should never really confuse "you the person " an individual who is not in business (in your own name) and the company - which is in business and everyone is dealing with. all dealings the companyu has should be notified as being with the company and never with you as an individual.

This being the case the answer here is "company" as you are clearly not an individual who is trading.

AGoodman
Posts:1419
Joined:Fri May 16, 2014 3:47 pm

Re: Amazon Tax Interviews

Postby AGoodman » Wed Nov 03, 2021 4:56 pm

I don't even know what KDP stands for, so bear that in mind, but:

The US IRS allows the owners of some companies to "check the box", an election which means that the company is treated as transparent for tax purposes.

That will not be the case for you as you have not made that election. It might be possible but that could cause you all manner of exciting UK tax issues because the US and UK would be taxing different entities for the same income - which could lead to double taxation. You should definitely take UK/US advice before taking that route.

Also, your company is not an LLC (a UK company is a little similar but still fundamentally not the same).


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