I have decided to cross post my original post from here, where hopefully it will be more visible and possibly help out more developers as there seems to be a lot more people having trouble with this side of things at the moment. If this is helpful to you, please leave a comment on this post letting me know.
I’ve seen loads of posts with creators (outside of the US) having problems with the required paperwork to receive payments from Microsoft, without being charged tax withholding. I have helped out as best I can in these situations as Microsoft seems to stick by the “we don’t offer legal advice”, well neither do I, but I can tell you how I got mine all sorted.
NOTE: This is the way I handled getting mine all sorted. I am not guaranteeing that this will work for your application – this is just the way I did it.
Things to note:
1. I’m in the UK and am being paid into a UK bank account.
2. The UK has a tax treaty with the US.
From start to finish I needed to fill in three forms:
a. Letter from Microsoft.
a. Letter from Microsoft
(i). I downloaded and filled in this form with the relevant details.
(ii). I printed it out and made sure that I sent it off to the IRS with the completed W-7.
(i). I downloaded and filled in the W-7.
(ii). Areas that were confusing and/or misleading
* Reason for submitting W-7
I had to check both A & H and fill in the description of “Exception 1(d) – Royalties Income” in H
I used the treaty article number of 12 by reading this.
* Section 6b – This is where I filled in my National Insurance Number.
(iii).I took my passport to an approved notary, and had them notarise a copy and sent it to the FCO to obtain an apostille (legalise the copy).
Other options that I could have gone with are:
1. Sending my actual passport.
2. Getting a copy of my passport notarized by the IRS at the US Consulate.
Check List for sending off my W-7 to the IRS:
1. Completed, dated and signed W-7.
2. Included completed and dated letter from Microsoft.
3. Included copy of passport with apostille attached.
(i). Upon receiving my ITIN from the IRS about twelve weeks later, I downloaded and filled in the W-8.
(ii). Send this off to Microsoft. The address is made available to you when you input you ITIN in the payment pages in the creators club.