Taxes for international InnerText creators

If you live and work outside the United States, the tax picture for your InnerText earnings has two sides: what you owe (or don't owe) the US government, and what you owe in your home country. Most international creators get the US side handled with a single form and then focus on domestic reporting. Here's what you need to know.

1. Do you owe US tax?

If you are not a US tax resident and you do not perform your creator work from within the United States, you generally do not owe US federal income tax on your InnerText earnings. The US taxes people on where they live and where the work is performed, not simply where the platform is incorporated.

That said, there is a default withholding rule. Without documentation confirming your non-US status, US processors are required to withhold 30% of your gross earnings before sending you anything. That 30% goes to the IRS, not to you.

The way to prevent that default withholding is a form called the W-8BEN.

2. The W-8BEN

When you set up your payout method in Settings → Payouts, InnerText routes your payouts through Segpay, the payment processor. Segpay will ask non-US creators to complete a W-8BEN: Certificate of Foreign Status of Beneficial Owner.

The W-8BEN does two things:

It tells the IRS you are a non-US person, so the default 30% withholding rule does not apply.
If your country has a tax treaty with the US, it allows you to claim the treaty rate, which for most countries brings withholding down to 0%.

You complete the W-8BEN once through Segpay's portal when you set up payouts. It is valid for three years. Segpay will send you a reminder when it is about to expire and needs to be renewed.

If you skip the W-8BEN or let it lapse, the default 30% withholding kicks back in automatically. Getting withheld amounts refunded from the IRS requires filing a US non-resident return (Form 1040-NR): a process worth avoiding by keeping your W-8BEN current.

3. Tax treaties: does yours apply?

The US has income tax treaties with most major countries. If your country has a treaty, the withholding rate on the type of income InnerText generates (service/royalty income) is typically reduced to 0% or a low single-digit rate. Most creators in the UK, Canada, Australia, and much of Europe see 0% US withholding once their W-8BEN is on file.

Country	Typical US withholding rate (treaty)
United Kingdom	0%
Canada	0%
Australia	0%
Germany	0%
Brazil	15–25% (varies by income type)
No treaty	30%

The table above is a general guide; treaty terms vary, and rates can differ based on how the income is classified. To confirm the exact rate for your country, check the IRS treaty table at irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z or ask a local accountant who handles foreign-source income.

4. VAT and GST

Whether you need to charge or remit VAT, GST, or a similar consumption tax on your creator earnings depends on your country and your revenue level. Most new creators don't register until they reach their country's mandatory threshold. Some register voluntarily before that threshold to reclaim input tax on business expenses (equipment, software, subscriptions).

InnerText acts as the payment facilitator for transactions on the platform. The VAT or GST treatment of your creator income is determined by your local tax authority's rules, not by InnerText's classification. If you're approaching your country's registration threshold, that's the right time to talk to a local accountant.

5. Country-by-country overview

Here's a starting point for the five most common countries among international InnerText creators. This is not a complete guide; tax law changes, thresholds adjust, and your personal situation matters. Use this to orient yourself, then verify the details with a local accountant.

United Kingdom

You report self-employment income through Self Assessment with HMRC. If your total trading income for the year is under £1,000, the Trading Allowance means you owe no tax and don't need to file; but keep records regardless.

Above £1,000, you file a Self Assessment return. Income tax rates for 2025–26: 20% on profits up to £50,270 (basic rate band), rising above that. You also owe National Insurance as a self-employed person: Class 2 NI is a flat weekly rate if profits exceed the small profits threshold; Class 4 NI is a percentage of profits above the lower profits limit.

Convert your USD payouts to GBP using the HMRC exchange rate published for the period. Keep records of every transfer and the rate applied.

Canada

Self-employment income goes on Form T2125 (Statement of Business Activities), which feeds into your personal T1 return. Your deductible business expenses (equipment, software, internet, phone) reduce your net income on T2125.

Once your taxable revenue exceeds $30,000 CAD in any rolling 12-month period, you're required to register for GST/HST. Below that, registration is optional. Provincial income tax rates vary; Quebec, Ontario, BC, and Alberta all have different rates on top of the federal rate.

Record your USD earnings in CAD using the Bank of Canada exchange rate on the date each transfer hits your account. The CRA expects CAD-equivalent figures in your records and on your return.

Australia

If you have an ABN, report your creator earnings as business income on your individual tax return. The ATO taxes income above AUD $18,200 at a starting rate of 19% (2024–25 rates), with higher brackets above that.

GST registration is mandatory once your GST turnover reaches $75,000 AUD per year. Below that, it's voluntary. If you register, you collect GST on taxable sales and can claim GST credits on business purchases.

The ATO publishes daily foreign exchange rates. Use these to convert USD payouts to AUD on the date of each transaction for accurate record-keeping.

Germany

Self-employment income in Germany falls into one of two categories depending on your activity: Freiberufler (freelancer: typically creative, intellectual, or advisory work) or Gewerbetreibender (trader/business). Your tax advisor can confirm which applies to you, as the classification affects local trade tax (Gewerbesteuer).

You file an Einkommensteuererklärung (income tax return) annually. For VAT: the Kleinunternehmer rule exempts you from charging and remitting VAT if your turnover stays below €25,000 in the current year (and is projected below €100,000 in the following year, as updated in 2025). Above that threshold, you register for VAT (Umsatzsteuer), charge it on your sales, and file quarterly or monthly returns.

Brazil

If you're registered as a MEI (Microempreendedor Individual), foreign income received from abroad must be declared through Carnê-Leão: the system for self-reporting income from foreign sources not subject to withholding at source. Carnê-Leão is filed monthly, with payment due by the last business day of the following month.

If your total revenue exceeds the MEI annual ceiling, you'll need to operate under a different CNPJ category (ME or EPP), which changes your tax obligations significantly. Foreign income from all categories must also be declared on your annual DIRPF (Declaração de Ajuste Anual). Given the complexity of Brazil's tax treatment of foreign income, a local contador who handles digital creators is particularly useful.

6. Currency conversion

InnerText pays out in USD via wire transfer or Paxum. When those funds hit your account, your bank or Paxum converts USD to your local currency at the exchange rate on the day of the transfer.

For tax purposes, your local authority cares about the amount in your home currency, not the USD figure shown in InnerText's dashboard. Use the official exchange rate published by your tax authority (HMRC for the UK, ATO for Australia, Bank of Canada rates for Canada, Bundesbank or ECB rates for Germany) for the date each transfer was received.

Keep a record of:

Every transfer date
The USD amount received
The exchange rate applied
The resulting local-currency amount

A simple spreadsheet works well for this. Export your payout history from Dashboard → Earnings monthly so you're not reconstructing the year in one go at filing time.

7. Country summary

Country	Form / return	Key threshold	Notes
UK	Self Assessment	£1,000 trading allowance	Class 2 + 4 NI applies above small profits threshold
Canada	T2125 (with T1)	$30k CAD GST/HST registration	Provincial income tax rates vary
Australia	Business income / ABN	$75k AUD GST registration	ATO daily FX rates for conversions
Germany	Einkommensteuererklärung	€25k Kleinunternehmer VAT exemption	Freiberufler vs. Gewerbetreibender classification matters
Brazil	DIRPF + Carnê-Leão	MEI revenue ceiling	Foreign income declaration required monthly and annually

8. Where to get more help

A local accountant who handles freelance or self-employed clients (particularly those with foreign-source income) is worth the cost. Creator income from a US platform is not unusual, but it's specific enough that a general-practice accountant without that experience may miss things. Look for someone who explicitly handles online or digital creator income in your country.

Not tax or legal advice. Tax law varies significantly by country and changes frequently. The information in this article is general educational guidance only. Consult a local accountant who handles online or freelance income from foreign sources for advice specific to your situation.