​What is tax withholding?

US tax law requires US companies (payer = Pixsy) to withhold a percentage of any payments to foreign entities (payee - companies or individual) in situations where there is no tax treaty in place, or a valid and complete W8 tax form is not on file.

Read more: https://www.irs.gov/businesses/us-tax-withholding-on-payments-to-foreign-persons

For most payments a withholding rate of 0% is standard, and it's very important that your tax form is fully completed to avoid our payment system from automatically withholding (if it's not required).

Important: Please ensure you supply your local tax ID reference (or government ID). This is a requirement by the US IRS, and without a tax ID, we will be forced to withhold the max withholding tax of 30% (this can easily be avoided).

Many countries have tax treaty agreements with the USA which mean that there is no need to withhold any money. This includes countries such as the UK, Germany, and Canada. For others, a low rate of 5-10% is applied, such as Australia, New Zealand, and Spain. For countries with no tax treaty whatsoever, it is necessary to withhold the full rate of 30%.

This rate is completely outside of Pixsy's control and is required by law. Any sums withheld are paid to the US IRS as withholding tax.

You can check the tax withholding rate for your country here: https://taxsummaries.pwc.com/united-states/corporate/withholding-taxes