Tax withholding of US-source income to non-US taxpayers

Since January 1, 2023, Revelator applies withholding rules to all payments of US source income to non-US taxpayers.

Which royalties are affected

We are required to withhold taxes for US-sourced royalties, defined as applying to:

• Streaming (when the listener is in the US)
• Automated claiming for YouTube Content ID, Facebook Rights Manager, etc. (when the listener is in the US)

Withholding rates

The statutory withholding rate applicable to non-US taxpayers (i.e., individuals, corporations) who receive payments of US source royalties (e.g., earnings from music streams) is 30%.

However, this rate may be reduced (including to zero) for non-US taxpayers who are residents of a country that has entered into an income tax treaty with the United States. Not all countries have an income tax treaty in effect with the United States.

What you need to do

Tax withholding amounts are fully transparent and appear on your monthly reports. To comply with US tax laws, we require you to register your enterprise and fill out the relevant tax forms in Tipalti.

For Revelator customers using PayPal and its payment integration, the payment process does not change. You will still receive funds to your PayPal account via Tipalti once you choose PayPal as your payment method.

IRS resources for non-US taxpayers

Here is some helpful information for non-US taxpayers on the IRS website:

• Tax withholding and estimated tax (Publication 505)
• Withholding of tax on nonresident aliens and foreign entities (Publication 515)
• Taxable and nontaxable income (Publication 525)
• United States income tax treaties A to Z — search for your country to see if it has a tax treaty with the United States and what it entails
• Tax treaty table 1 (PDF) — income tax rates on interest, dividends, royalties, and other income

Related articles

• Tax withholding and Tipalti
• What is Tipalti?
• Add payment information
• Edit or update payment information
• What payment methods can I use to receive payment from Revelator through Tipalti?
• Supported payment methods by country
• What are the fees for payments?
• How long does it take for payments to be processed once made?
• Why can't I receive payments?
• In which currency can I get paid?
• Can I change my selected payment method on Tipalti?
• How can I ensure my payment details are secure?
• Why do you collect my tax information?
• What is tax withholding?
• How to complete tax forms
• Tax forms for non-US residents
• Applying withholding to Payees in a royalty run