Help needed, anyone knows a solution to this?

My latest project has run into difficulties, with the IRS withholding 30% of my advance, even though I'm not a US resident and live in Singapore.

The reason for this is it seems that by default any creator from outside the US who does work for a US company is supposed to have 30% of his/her royalties withheld by the IRS. Its Double Taxation issue since I will also be taxed on my earning in Singapore where I actually reside.

The easiest way to avoid this if the country the creator lives in has a Double Taxation Agreement with the USA. Many countries have one (like France, Japan, UK, Australia) that results in 0% withholding, whilst others (like the Philippines and Italy) have reduced withholding. So you fill in a W8BEN form and get a partial or total waiver of the withholding.

Unfortunately Singapore and Malaysia are amongst a relatively small group of countries who do *not* however have a DTA with US. The full list of DTAs can be found here: [link]

- So I'm trying to figure out how I can get my money back from the IRS.

-There seem to be two possible solutions, but with the IRS itself being unhelpful with advice, we aren't quite sure how valid either of them are:

(1) Apply for an interview with the IRS, stating that I am a tax-paying resident of another country and therefore requesting a waiver of the withholding. As yet it is unclear whether this is possible, or what the criteria for the IRS's decision would be even if it is.

(2) Work out a work-for-hire contract rather than one based on Advances ; we've been told this is one reason why my previous projects where I had to submit a W8BEN form have not been taxed. But again its not clear how true this is from the responses we've gotten from the IRS.


Well that's the issue right now, any more information or advice would be greatly appreciated!