ITIN procedure for Royalties
Hi,
Here is my situation : I am based in Canada through a registered company (NOT a LLC) and I make games that are sold in the States for a portable device. I do NOT have a fixed base in the States, I am alone and registered the company only for banking purpose.
The deal with my publisher is that they send me 50% of the royalties paid to them for the games by the device manufacturer.
I have an EIN, those are easy to get, but I was told that it is not enough and that I need an ITIN to prevent withholding.
Here is my question : I do not produce income tax reports in the USA, I produce them in Canada.
Do I fall under Exception 1(d) of the W7 form? (as those are non-movie/music related Royalties)
Can I walk in an IRS office with the filled form? I could get an acceptance agent, but the cost and delays associated with it are prohibitive. (I live near the customs)
Why isn't the EIN enough to fill a W8-BEN form? I'm citing Article XII and Prot3 for the Canada/US Tax Treaty on the W8-BEN form, which put the withholding at 0%, so why do I need a tax number when I don't pay any? (to the States anyway :) )