What if there is no tax treaty between my country of residence and the U.S.?

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

Symphonic 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. That amount could then be filed by the label based in Afghanistan in their region and further they could get it back and/or receive a tax credit.

Have more questions? Submit a request

0 Comments

Please sign in to leave a comment.