(International) International Taxes

Note: DPM Network Music Distribution is not a legal or tax authority. We do not give legal or tax advice. DPM Network Music Distribution simply reports and provides information as per what we’ve been instructed to.

 Please consult a tax professional or legal authority for advice and direction.

Please read this as a resource that explains how taxes work for clients outside of the USA.

As per US tax regulations and treaties between the US and other countries, we are required by law to withhold a portion of your royalties and pay it to the United States Internal Revenue Service (IRS). The portion withheld depends on if 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 DPM Network Music Distribution directly to the United States Internal Revenue Service (IRS) [and you may in many cases later claim and receive these funds by working with your government and/or your tax specialist].

Further, it is only based on USA sales or streams. It is not for all territories

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.

(International) What are the withholding percentages by country/tax treaty?

Here is a list of countries and their tax withholding rate that is charged on US source income only.

Below is a list that shows the tax withholding rates for royalties by country. This is for countries that the USA has a tax treaty with.

So basically, if you provide us the tax forms with an EIN, ITIN, and/or a DOB then the withholding rate would drop from 30% to the rate listed below for any income made in the territory of the USA only.

This, if you are in Germany and you have sales or streams from the USA territory, we will place withholding on that income based on the tax treaty with the USA and Germany, in this case, 0% withholding will apply.

Sales or Streams made in the territory of the USA are only subject to withholding. If you are based in Germany and made sales in Germany, then there would be no withholding for that under any treaty, it is only for USA based sales or streams thus, the amount is quite minimal.

** Countries NOT listed below = 30%
Armenia – 0%
Australia – 5%
Austria – 0%
Azerbaijan – 0%
Bangladesh – 10%
Barbados – 5%
Belarus – 0%
Belgium – 0%
Bulgaria – 5%
Canada – 0%
China – 10%
Cyprus – 0%
Czech Republic – 0%
Denmark – 0%
Egypt – 15%
Estonia – 10%
Finland – 0%
France – 0%
Georgia – 0%
Germany – 0%
Greece – 0%
Hungary – 0%
Iceland – 0%
India – 15%
Indonesia – 10%
Ireland – 0%
Israel – 10%
Italy – 0%
Jamaica – 10%
Japan – 0%
Kazakhstan – 10%
Korea (South) – 10%
Kyrgyzstan – 0%
Latvia – 10%
Lithuania – 10%
Luxembourg – 0%
Malta – 10%
Mexico – 10%
Morocco – 10%
Moldova – 0%
Netherlands – 0%
New Zealand – 5%
Norway – 0%
Pakistan – 0%
Philippines – 15%
Poland – 10%
Portugal – 10%
Romania – 10%
Russia – 0%
Slovak Republic – 0%
Slovenia – 5%
South Africa – 0%
Spain – 0%
Sri Lanka – 10%
Sweden – 0%
Switzerland – 0%
Tajikistan – 0%
Thailand – 5%
Trinidad & Tobago – 0%
Tunisia – 15%
Turkey – 10%
Turkmenistan – 0%
Ukraine – 10%
United Kingdom – 0%
Uzbekistan – 0%
Venezuela – 10%

If your country of residence has not entered a tax treaty with the U.S. we are required to deduct the standard U.S. non-resident withholding rate of 30% and remit it to the U.S. government on your behalf.

Example: If a record label based in the country of Colombia who has no tax treaty with the USA sold $50 for Q3 of a calendar year (July – September) in the territory of the USA, then we would be withholding 30% of that income which equals $15 prior to paying that label in Colombia. If the same label made $200 in Germany, and $500 in Spain, then we wouldn’t withhold from those countries.

DPM Network Music Distribution would then pay these funds to the Internal Revenue Service (the USA taxing authority) and that label would receive a tax form (1042-S) at the end of a year. 

If you are not a US client, and you do not fill out a W8-BEN form, then you will be charged a maximum 30% withholding rate. So, make sure to fill out and submit your W8-BEN!

Please note that every music distributor in the world has to deal with the issue of tax treaties and tax withholding between countries. This is not the fault of DPM Network Music Distribution or any other distributor. This has to do with negotiations between countries. Many countries have higher tax withholding rates than the U.S.