How Twitch withholding works
Twitch (owned by Amazon) treats subscriber and bits revenue from US viewers as US-source income for non-US streamers. Default withholding: 30%. With W-8BEN-E filed in Twitch creator dashboard, drops to treaty rate.
Setup steps
- Form Wyoming LLC ($297 + state fee, 24 hours)
- EIN via IRS Form SS-4 fax (8-10 business days)
- Open Mercury or Wise Business
- Update Twitch creator dashboard: Settings → Payouts → US Tax Info. Select "Non-individual entity" with LLC name + EIN.
- Submit W-8BEN-E citing your country-US treaty
- New rate applies on next monthly payout cycle
Treaty rate examples
- UK streamer: 30% → 0%
- Germany streamer: 30% → 0%
- Canada streamer: 30% → 0%
- India streamer: 30% → 15%
- Australia streamer: 30% → 5%
- Brazil streamer (no treaty): 30% stays
- UAE streamer (no treaty): 30% stays
Beyond Twitch revenue
- Patreon (different platform, similar setup)
- StreamElements tips: route through LLC bank
- Brand sponsorship contracts: sign under LLC, US brands prefer this
- Merch sales (Streamlabs Merch): flow to LLC Stripe
- YouTube channel companion: AdSense tax setup similar to Twitch