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Tax Withholding Table
The two tables below provide examples of different types of music income and the related tax reporting and withholding treatment for US taxpayers and non-US taxpayers.
Because not all types of music income are subject to end of year reporting for royalties, it is very common for the amount shown on the 1099 or 1042 form to be less than the sum of all your payments for the year.
| U.S. Based Artist | |||
| Listen/Purchase Location | Subject to Withholding | Subject to End of Year Reporting for Royalties (>$10) | |
| Streaming (e.g., Spotify streams) | US | No (if TIN provided) | Yes, Form 1099-MISC |
| Rest of the world | No (if TIN provided) | Yes, Form 1099-MISC | |
|
Automated Claiming (Social Video Monetization) |
US | No (if TIN provided) | Yes, Form 1099-MISC |
| Rest of the world | No (if TIN provided) | Yes, Form 1099-MISC | |
|
Downloads (pass-through) |
US | No | No |
| Rest of the world | No | No | |
|
Physical product (pass-through) |
US | No | No |
| Rest of the world | No | No | |
| Non-U.S. Based Artist | |||
| Listen/Purchase Location | Subject to Non-U.S. Resident Withholding | Subject to End of Year Reporting for Royalties | |
| Streaming (e.g., Spotify streams) | US | Yes, but treaty relief may apply | Yes, Form 1042-S |
| Rest of the world | No | No | |
|
Automated Claiming (Social Video Monetization) |
US | Yes, but treaty relief may apply | Yes, Form 1042-S |
| Rest of the world | No | No | |
|
Downloads (pass-through) |
US | No | No |
| Rest of the world | No | No | |
|
Physical product (pass-through) |
US | No | No |
| Rest of the world | No | No | |
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