US tax withholding for Brazilian creators and devs: guide

Quick answer

A Brazilian creator who is paid by US platforms can face US tax withholding of up to 30%. Because Brazil has no income tax treaty with the US, 30% is the reference figure. The base changes by platform: Roblox, YouTube, Microsoft and Steam target the US audience. In Brazil, the income remains taxable and the offset has a legal limit.

Why US platforms withhold tax from Brazilians

US tax law treats residents and non-residents differently. IRS Publication 515, revised on April 30, 2026, says that most US-source income received by a foreigner is subject to 30% US tax. The rate can be lower, down to an exemption, if a treaty exists between the person's country of residence and the US. The tax is, as a rule, withheld from the payment at the source by the platform, which acts as the withholding agent.

This is why every serious platform asks for a tax form before paying: W-8BEN for foreign individuals and W-8BEN-E for entities, according to the IRS instructions. The form reports residence and allows requesting a reduced rate when a treaty applies.

Two things apply to Brazilians. The first: Brazil is not on the IRS list of income tax treaties, revised on January 3, 2026. There is an agreement on the exchange of tax information, signed in 2007, but it only regulates the exchange of data between the authorities and does not reduce any rate. The second: US tax withholding is not a platform fee. It is income tax deducted from the payment.

Royalty or service: the detail that decides the withholding

The same Publication 515 contains the rule that explains why each platform classifies income in its own way: the source of the income depends on the nature of the payment. For royalties from patents, copyrights and similar rights, the source is the place where the property is used. For payment for personal services, it is the place where the service is performed.

In practice, this shows up on the official pages:

• •Roblox: starting November 1, 2026, DevEx payments will be classified as royalties.
• •Steam: revenue share payments are classified as royalties.
• •YouTube: the page lists "Other Copyright Royalties (such as YouTube Partner Program and Google Play)" and also "Services (such as Google AdSense)" among the income types for which a treaty can reduce withholding.
• •Unity Asset Store: publishers outside the US are exempt if the service was performed outside the US, according to Unity's own FAQ.
• •Meta Horizon: Meta states that it does not withhold income tax from developers.

The central point: there is no single answer to "does a US platform withhold tax?". The answer lies in the classification that the platform itself adopts and declares. When it does not declare one, the text below says "not declared" and does not assume.

Table: what each platform says about US tax withholding (checked on October 21, 2026)

Three caveats about the table. First: it reflects what each page says today and may change. Second: the KDP page also mentions Brazilian withholding of 15% on Amazon.com.br sales, which is a different matter and is not US tax. Third: in this review we did not check the pages of Patreon, Twitch, TikTok, the Apple App Store, Google Play, Fab, Steam Workshop and Fortnite/UEFN. Anyone paid through them should read the official documentation of each one.

The standard path: from the form to the carnê-leão

The path is similar across all platforms that withhold:

1. •Form. You fill out the tax form in the platform's dashboard. A foreign individual uses the W-8BEN and an entity uses the W-8BEN-E, according to the IRS. Several platforms require a tax identification number (TIN) and some only accept Latin characters.
2. •US tax withholding. The platform calculates the rate from the form and deducts it from the payment. The rate appears in the platform's tax dashboard after submission.
3. •Proof. At the end of the year, anyone who had tax withheld receives Form 1042-S, which reports the US-source income and the tax withheld. Keep this document.
4. •Brazil. You report the income in the carnê-leão (Brazil's monthly income-tax payment for individuals with foreign income) and in the Declaração de Ajuste Anual (Brazil's annual income tax adjustment return), and request the offset of the tax paid in the US, within the legal limit.

One rule applies to the platforms that mention refunds: withheld tax, as a rule, does not come back through the platform itself. Valve, on Steam, says it does not refund withholding when the rate changes because of a TIN, and Unity says it cannot refund tax already withheld. YouTube, on the other hand, says it may refund in limited cases, if updated information arrives by December 10.

How to offset in Brazil the tax paid in the US

The Receita Federal (Brazil's federal tax authority) states that income received from foreign sources by an individual resident in Brazil is taxable, subject to treaties or reciprocity of treatment to avoid double taxation.

Offset. Where these instruments exist, the tax paid in the country of origin can be offset in the calculation of the carnê-leão and in the Declaração de Ajuste Anual, within the legal limit. Where they do not exist, tax paid abroad cannot be offset. For the US, the Receita page says that proof of reciprocity is not required, and that reciprocity does not apply to taxes paid to member states and municipalities.

Limit. The offset does not exceed the Brazilian tax due on the same income. Illustrative example, with made-up values: if the US withholding was $120 (USD), but the Brazilian tax on that income, already converted, equals $90 (USD), only $90 counts as a credit. The difference does not become a refund.

Conversion to reais. The Receita instructs you to convert the income and the tax paid into US dollars at the value set by the monetary authority of the country of origin on the date of receipt. Then, the conversion to reais uses the buying dollar rate set by the Banco Central do Brasil (Brazil's central bank) on the last business day of the first half of the month before the month of receipt.

Record each payment with date, gross amount, withholding and net amount. This data, together with Form 1042-S, supports the offset.

When it makes sense to think about a structure (LLC)

Opening a US LLC does not eliminate US tax withholding by itself. The IRS instructions say that, when the LLC is disregarded and has a single foreign owner, the owner is the one who submits the W-8 form. The LLC also does not create a treaty that does not exist between Brazil and the US.

In Brazil, the structure can complicate things. Cosit Consultation Ruling No. 56/2026 (Solução de Consulta Cosit nº 56/2026) concluded that LLCs with a member who is not a US resident, treated as transparent under US law, are characterized as a privileged tax regime (Normative Instruction IN RFB 1.037/2010, art. 2, item VII). Article 5 of Law 14.754/2023 provides that the profits of entities controlled abroad by individuals resident in Brazil are taxed on December 31 of each year. In other words: opening an LLC to avoid withholding can trade a withholding at the source for annual obligations in Brazil.

For those who bill little, the first step is to submit the correct form, not to open a company. For those with recurring revenue and several sources of income, it is worth comparing costs and obligations before deciding.

Which article to read first: guide by platform

• •Minecraft Marketplace: the Minecraft Marketplace article: withholding and tax for Brazilians separates the store commission, US withholding and tax in Brazil.
• •Roblox DevEx: the article on Roblox DevEx explains the November 1, 2026 change, the form and the October 31 deadline.
• •YouTube: the article on US tax withholding on YouTube explains the AdSense for YouTube withholding, the December 10 deadline and the carnê-leão.
• •Other platforms: the table above summarizes what each page says today. For income from several sources, see the article on content creators with foreign income.

Related articles

• •Minecraft Marketplace: withholding and tax for Brazilians
• •Content creator with foreign income: 2026 structure
• •LLC for info-product creators and digital content creators
• •How to declare an offshore on your Brazilian income tax return

Notice

This material is informational and does not replace an analysis of your case. US tax withholding, the offset and the classification of the LLC depend on the form submitted, tax residence and the corporate structure. The platforms state that they do not provide tax advice. No promise of results is made.

Talk to a specialist: OffshoreProz reviews the tax documentation of creators with foreign income. Schedule a conversation.