Should non us-residents fill out the 1049nr form and pay taxes on US royalties?

Home Forums General Questions Should non us-residents fill out the 1049nr form and pay taxes on US royalties?

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  • #34343 Reply
    Walden
    Participant

    Hi dear colleagues: Can someone please clarify this situation for me?
    Since I live in another country and I’m not American,
    Do I have to pay taxes on royalties received in BMI or ASCAP, as well as my income from licenses from libraries in the US, even if I am paying those taxes in my country?
    If so, should it be done through the 1049nr form?
    Should all libraries that place a synchronization license send you a 1099 form where they manifest the payment?
    Is there any amount of royalty income that is exempt from submitting this statement?
    If it is not my obligation to pay taxes in the US, is there any procedure that I must do at the IRS?
    My country has a tax treaty to only deduct 10% taxes.
    I would greatly appreciate your comments, as I have received very confusing information about it.

    #34345 Reply
    Music1234
    Participant

    Do I have to pay taxes on royalties received in BMI or ASCAP, as well as my income from licenses from libraries in the US, even if I am paying those taxes in my country?

    No, you are not a USA citizen so you do not need to pay any income tax to the IRS in the USA. Foreign Societies that pay American writers royalties often just deduct taxes before we are paid. Then we receive a statement of taxes paid to foreign governments for the performance royalties we earned in England, France, Germany, Australia, Brazil, etc We then need to report those foreign taxes paid to the IRS in the USA.

    This is why we all work with accountants too!

    #34348 Reply
    MM_Musicworks
    Participant

    My understanding is this –

    If you are a foreign writer with BMI (Like I am), you have to fill out the W8-BEN tax form to let them know you live in a country that has a tax treaty with the US. That way only 10% (as in your country) will be deducted before its remitted to you as against the usual 30% in case your country does not have a tax treaty with the US.

    This is also true for income deriving from US sales at RF sites like AJ.

    I am not aware of how other non RF libraries would handle sync payments as it hasn’t yet happened for me.

    HTH!

    #34349 Reply
    mikevan
    Participant

    A W8-Ben form and an ITIN number should be everything you need. A lot of RF libraries won’t even ask you for that, but others will, so better be prepared.

    #34354 Reply
    Walden
    Participant

    Thanks mikevan, MM_Musicworks and Music1234 for your comments.

    I know that this topic can be very complicated, so I would appreciate some link that takes me to some source of information to clarify these things.
    Thank you.

    #34360 Reply
    MM_Musicworks
    Participant
    #34365 Reply
    Walden
    Participant

    Thanks MM_Musicworks ยก

    #34368 Reply
    mikevan
    Participant

    The IRS website is probably a good place to get the info you need…
    This form is what you need to get an ITIN number, plus you need to verify your ID.
    https://www.irs.gov/forms-pubs/about-form-w-7

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