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HI, I remember last time I am following a course that saying that Amazon.com is required to hold taxes applicable on my earnings since I live outside USA, is this correct and how to deal with that?

p/s: the earnings stats that we see daily already deducted (after tax) but actually we do not need to pay the taxes since we're non-US?

Yes, Amazon is withholding taxes. I am not sure how is it with their Affiliate program, but for a non-US publisher, Amazon have to retain 30% of your royalties for the IRS.
And they do. I've got my "Foreign Person's U.S. Source Income Subject to Withholding" from them last month.
But if you don't want them to do that, here are 2 great articles on how to deal with USA IRS as a Non-US citizen:

http://catherineryanhoward.com/2012/02/2...be-taxing/
http://ezseonews.com/kindle-publishing/k...ublishers/