Disclaimer: This material has been prepared for informational purposes only and does not constitute legal or tax advice. Users should consult with a qualified tax professional regarding their specific tax circumstances.
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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.
| 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 (e.g., Facebook match) |
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 (e.g., Facebook match) |
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 | |
Withholding Table by Country
Below is a list of countries with which the IRS has a tax treaty, and the associated royalty rates in effect as of September 2021. This list is for reference purposes only and all rates should be confirmed with the actual treaties and protocols in effect. Any withholding applied will be at the current, correct rate and shown in your CD Baby account.
| Country | IRS Country Code | ISO Country Code | Estimated Withholding Rate | Treaty Article Citation (Per IRS Table) |
| Australia | AS | AU | 5% | 12(2) / P8 |
| Austria | AU | AT | 0% | 12(1), (2) |
| Bangladesh | BG | BD | 10% | 12(2) |
| Barbados | BB | BB | 5% | 12(2) / 1PV; 2PII(6) |
| Belgium | BE | BE | 0% | 12(1) |
| Bulgaria | BU | BG | 5% | 12(2) / P5(7) |
| Canada | CA | CA | 0% | 12(2), (3) / 5P7(1) |
| China | CH | CN | 10% | II(2) |
| Comm. of Indep. States (Those countries to which the U.S.-U.S.S.R. income tax treaty still applies: Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, and Uzbekistan.) | 0% | III(1)(a) | ||
| Cyprus | CY | CY | 0% | 14(1) |
| Czech Republic | EZ | CZ | 0% | 12(2) |
| Denmark | DA | DK | 0% | 12(1) |
| Egypt | EG | EG | 15% | 13(1) |
| Estonia | EN | EE | 10% | 12(2) |
| Finland | FI | FI | 0% | 12(1) |
| France | FR | FR | 0% | 12(1) / 2PIII |
| Germany | GM | DE | 0% | 12(1) |
| Greece | GR | GR | 0% | VII |
| Hungary | HU | HU | 0% | 11 |
| Iceland | IC | IS | 0% | 12(1), (2) |
| India | IN | IN | 15% | 12(2)-(4) |
| Indonesia | ID | ID | 10% | 13(2) / P34 |
| Ireland | EI | IE | 0% | 12(1) |
| Israel | IS | IL | 10% | 14(1) |
| Italy | IT | IT | 0% | 12(2) |
| Jamaica | JM | JM | 10% | 12(2) |
| Japan | JA | JP | 0% | 12(1) |
| Kazakhstan | KZ | KZ | 10% | 12(2) |
| Korea, South | KS | KR | 10% | 14(2) |
| Latvia | LG | LV | 10% | 12(2) |
| Lithuania | LH | LT | 10% | 12(2) |
| Luxembourg | LU | LU | 0% | 13(1) |
| Malta | MT | MT | 10% | 12(2) |
| Mexico | MX | MX | 10% | 12(2) |
| Morocco | MO | MA | 10% | 12(2) |
| Netherlands | NL | NL | 0% | 13(1) |
| New Zealand | NZ | NZ | 5% | 12(2) / PVIII |
| Norway | NO | NO | 0% | 10(1) |
| Pakistan | PK | PK | 0% | VIII(1) |
| Philippines | RP | PH | 15% | 13(2) |
| Poland | PL | PL | 10% | 13(2) |
| Portugal | PO | PT | 10% | 13(2) |
| Romania | RO | RO | 10% | 12(2) |
| Russia | RS | RU | 0% | 12(1) |
| Slovak Republic | LO | SK | 0% | 12(2) |
| Slovenia | SI | SI | 5% | 12(1) |
| South Africa | SF | ZA | 0% | 12(1) |
| Spain | SP | ES | 0% | 12(1), 12(2) |
| Sri Lanka | CE | LK | 10% | 12(2) |
| Sweden | SW | SE | 0% | 12(1) |
| Switzerland | SZ | CH | 0% | 12(1) |
| Thailand | TH | TH | 5% | 12(2) |
| Trinidad & Tobago | TD | TT | 0% | 14(1) |
| Tunisia | TS | TN | 15% | 12(2)-(3) |
| Turkey | TU | TR | 10% | 12(2) |
| Ukraine | UP | UA | 10% | 12(2) |
| United Kingdom | UK | GB | 0% | 12(1) |
| Venezuela | VE | VE | 10% | 12(2) |
| Other Countries | 30% |
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