As of January 1, 2023, Revelator will be applying withholding rules to all payments of US source income to non-US taxpayers.
We are required to withhold taxes for US-sourced royalties, defined as applying to Streaming (when the listener is in the US) and Automated claiming for YouTube Content ID, Facebook Rights Manager, etc. (when the listener is in the US).
The statutory withholding rate applicable to non-U.S. 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) in the case of non-U.S. 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.
Tax withholding amounts will be fully transparent and will appear on your monthly reports. To comply with US tax laws, we will require you to register your enterprise and fill out the relevant tax forms in Tipalti.
For Revelator customers using PayPal and their payment integration, the payment process will not change. You will still receive funds to your PayPal account via Tipalti once you choose PayPal as your payment method.
If you do not complete your tax forms through Tipalti, we will automatically withhold 30% of your royalties generated from US streams to comply with US tax laws.
If you run your own royalty run, please make sure to pay your payees the relevant amount that you receive net of any withholding tax (if applied) and not from the total gross amount of royalties due.
We suggest you confer with your personal tax professional to understand better how this applies to your organization and how you might be able to reclaim these taxes.
Here is some helpful information for non-US taxpayer information on the IRS website.
Tax withholding and estimated tax (505) - start here
Withholding of Tax on Nonresident Aliens and Foreign Entities (515) - read more
What is taxable and nontaxable income according to the IRS (525) - read more
Search for your country to see if there is a tax treaty and what it entails with the United States - learn more
This table lists the income tax rates on interest, dividends, royalties, and other income - read more.
Please also see here for additional information on payments and taxes:
- 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
If you have any additional questions, please contact support.