Tax Information Requirements

Daybreak Games requires all creators, including non-profit or tax-exempt organizations, to provide valid taxpayer identification in order to comply with U.S. tax reporting regulations. A U.S. Taxpayer Identification Number (TIN) is only required if you are a U.S. creator.  Non-U.S. creators must provide a TIN if they are claiming treaty benefits.

For U.S. creators, your TIN is either an Employer Identification Number (EIN) or a Social Security Number (SSN).

For Non-U.S. creators, a U.S. TIN is not required unless you are claiming treaty benefits.  You can learn more about EIN (individuals/business entities) and ITIN (individuals) numbers by reviewing the following page.  Applying for a U.S. Taxpayer ID Number

Tax ID Submission Process

1. Tax Questionnaire
U.S. Tax information must be submitted and completed to DGC using a short online tax interview. This information is required before publishing and selling your artwork in game.  The questionnaire guides you through a step-by-step process which gathers all necessary information required to establish your tax identity and generate either a Form W-9 for U.S. creators or Form W-8 for Non-U.S. creators.

2. Tax ID Validation
U.S. creators and non-U.S. creators claiming treaty benefits must provide a U.S. TIN which must be validated by the Internal Revenue Service (IRS). This process is subject to IRS database outages that can delay the process. In addition, the process can take up to six weeks (and can be as much as 10 weeks during peak tax season) for TINs that were recently issued and are not yet part of the IRS database.

3. Account Status
Creators are eligible to upload items once an “Approved” status appears. If a Tax ID cannot be validated because it does not match IRS records, additional documentation may be required.  Any publishing restrictions will remain in place until the information is updated and validated.

Tax Withholding

Tax withholding rates vary based on whether you are a U.S. person or a non-U.S. person. Non-U.S. creators may be eligible for a reduced rate of U.S. tax withholding if your country of permanent residence has an income tax treaty with the U.S. and you have provided a valid US TIN.

Tax Reporting

U.S. creators will have royalties earned in the prior tax year reported on the Form 1099-MISC. Forms will be issued on or before January 31 each year and will be filed with the IRS.

Non-U.S. creators will have U.S. source income reported annually on the IRS Form 1042-S. The form is issued on or before March 15 each year, and is an informational statement of your royalties and any amounts withheld during the prior tax year.

For example, any royalties paid from January 1, 2013 through December 31, 2013 will be reported on either Form 1099-MISC issued in January 2014 to U.S. creators or Form 1042-S issued in March 2014 to Non-U.S. creators.

*Note: The information on this page is not intended to be tax advice and may not be used to support tax positions. We recommend that you consult with a tax advisor for any tax guidance.