Royalties Income Classification

[liroyb]

Resident of country A receive ebook royalties from publisher in country B. The resident did not perform any ongoing work after publishing the ebook since all the marketing & customer support is done by the publisher. Considering country A have territorial tax system, such income is classified 'foreign-sourced' from country A prospective?

 

[CyprusLawyer101]

Generally yes. If no sales on e book in the country of residence then more‌ likely nil tax, but local rules shoud be examined. This is rather a generalization of‍ approach though and local rules should be looked at.

 

[liroyb]

Thanks for your replay. Yes all the sales are from country B.
Generally speaking, for tax⁠ purposes only, does it makes any difference if the royalties receiver incorporate or not?

 

[Cons Mark]

In general it⁤ is foreign source income but for more professional answer it is essential to share jurisdictions,⁣ fiscal residency of an actors and their citizenship.

 

[CyprusLawyer101]

Depends on jurisdictions involved