The tax collected is a withholding tax paid directly to the United States of America's Internal Revenue Service, which is required because Babelcube is a US company. It is not an income tax. We provide a document at the end of the calendar year with the amount of tax withheld for your account. You may be able to use this document to reduce the tax you need to pay in your own country, however, this varies by country. It is best to consult your own tax adviser to understand your specific situation.