Withholding tax and double taxation explained:
Most of the time we receive the full amount for a job. Then we complete our taxes at the end of the year and pay our local or national authorities. That’s the case most of the time.
However, some countries take money from payments made by clients as tax on your behalf. This happens in Asia quite often but sometimes in Europe and the USA as well.
In the USA a W-8 form is used by the IRS for foreign individuals and businesses to verify their country of residence for tax purposes, certifying that they qualify for a lower rate of withholding tax or none. If this is not completed 30% of your job may be withheld. We can help with this process.
Withholding tax is also held by businesses in Asia depending on the treaty that county has with the country you reside in, or the local office of your Agency. We help you navigate these costs in advance to minimise them and to ensure that if they are unavoidable, the commission fee is bumped up by your agency to cover this expense.
We don’t do your actual taxes at the end of each year, but we can help you avoid having to pay taxes twice if one of your clients has already taken money from you. This is called double taxation.
You can download your tax summary on your portal which should make it easier for you to remit your annual tax. We will remit for American Artists to the IRS and UK Artists for Money laundering authorities each year free of charge as it is our obligation in those jurisdictions.
Below is an artist testimonial on this matter.
The Accounts Admin team were very helpful with providing the tax withholding certificate of the client, which was withheld from my payment too.
I was struggling to understand how the withholding tax would be added to my agency’s invoice and added to the artist payment but with Accounts Admin it was a very smooth and easy process.