I’m also getting this, as a United Kingdom resident.
Mine has been like this since …2018!
For four years I wasn’t selling much at all, so I just used PayPal since they only take 25% rather than 30%.
But since April 2022 I’ve begun to sell many games so I really need to sort this out. I’m losing a lot of money.
I sent an email to support with screenshots. I’ve had confirmation that the issue has been received and reviewed, but so far there’s been no reply or resolution.
I just checked my profile again and my problem seems to be fixed. Apparently itch.io doesn't update the tax withhold rate in the tax rate setting itself but rather when you click the payout button it show that 15% tax has been deducted (which is still high for me)
I feel like your problem might be different than mine. Click on the pay now button. You might see the updated tax info too.
It’s been like this since 2018 because I competed the form correctly (it confirmed 0% withholding matched to USA/GB tax treaty) but the itch page still said 30% so I didn’t see any reason to start using itch payments.
Retaking the tax interview twice this week changed nothing, not even the date of the tax interview (still says 2018).
I’ve now been told by support that I should start using it regardless of the 30% warning, and upon my first pay out it will show 0% …somewhere.
I hope you can see what a poor user experience this is?