Note: Symphonic is not a legal or tax authority. We do not give legal or tax advice. Symphonic simply reports and provides information as we've been instructed to. Please consult a tax professional or legal authority for advice and direction.
As per US tax regulations and treaties between the US and other countries, we are required by law to apply tax withholding to US-sourced earnings and pay it to the United States Internal Revenue Service (IRS). The portion withheld depends on whether the US has a tax treaty established with your country. Every country is different, and there are withholding rates from 0% - 30% (which is the max). These funds are then paid by Symphonic directly to the United States IRS. Further, tax withholding only applies to US-sourced earnings.
Example: Australia Records is a fictional record label based in the country of Australia, which has a tax treaty with the USA with a 5% tax withholding rate.
Here is a link to the list of countries and their tax withholding rate that is charged on US-source income only.
If you are not a US client and you do not fill out a W8-BEN form, then a 30% tax withholding will be applied to your earnings. So, make sure to fill out and submit your W8-BEN!
For additional tax-related questions and topics, please click here.
The IRS also offers the following resources for further exploration:
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