BWT stands for Backup Withholding Tax.
If you are an Envato Studio service provider and do not provide us with a tax form, we may be required to withhold 24% of your revenue and send it to the IRS.
Effectively this is paying part or all of your income tax upfront, and you’ll simply take credit for this amount on your regular tax return for the year. Please note that high net worth persons are subject to a tax rate in excess of backup withholding and may owe additional tax on their income.
You will not be subject to backup withholding on payments you receive if you provide your correct TIN and make the proper certifications. Backup withholding is 24% of the total value of your earnings (inclusive of Envato Studio's platform fee).
Please note that if you haven’t submitted a W8 or W9 form, we will withhold 24% BWT from any earnings created after January 1, 2016, until a tax form is submitted. We will also charge BWT on any earnings if your tax form has expired, so make sure to keep an eye out for email notifications from us notifying you when your current tax form is due to expire.
You can update your tax information via your Tax Info page.