Disclaimer: The information below does not constitute professional advice.
To avoid a 30% withholding tax, non-US payees must submit a W-8BEN form with a Tax ID Number (TIN) or Employer ID Number (EIN) issued by the IRS. Some payments such as ad revenue (royalties) are subject to individual tax treaties and some withholding may still be required. The W-8BEN with Tax ID ensures the lowest possible withholding tax rate will be applied to your payments. If your country is not on this list
, there is no treaty and your withholding will be 30% regardless, so no TIN / EIN is necessary.
IRS page for obtaining an EIN
Remember, you must acquire a US EIN from the IRS to avoid mandatory withholding.
We previously advised foreign individuals to obtain a Tax ID Number (TIN), but the IRS instead was giving them Employer ID Numbers (EIN). The list of entities that can apply for an EIN includes "Are a foreign person and need an EIN to comply with IRS withholding regulations", so to our understanding the TIN process is no longer the way to go.
You may also try calling (267) 941-1099 to expedite the EIN process. This is not a toll-free call.
If you do not wish to complete this process, you may submit a W-8BEN without an EIN / TIN and we will process your payments with 30% withheld. If you don't submit anything, we will hold your payment and wait until you decide what to do.
W-8BEN forms should be emailed to tom AT newgrounds.com with the subject, "W-8BEN" followed by your NG username.