When you receive payments from Catapult, we may need to withhold a portion of that payment to send to the U.S. Internal Revenue Service (IRS) as required by law. Here's how it works for you:
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If You're a U.S. Resident or Corporation: Good news! In most cases, we won't withhold any taxes from your payments. The only exception is if the IRS has notified you that you're subject to "backup withholding" and you've indicated this on your W-9 form. Otherwise, you'll receive your full payment without any withholding.
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If You're a Non-U.S. Resident or Corporation: If you're earning U.S.-sourced royalties*, the standard withholding rate is 30%. However, this rate could be lower if your country has a tax treaty with the United States that offers a reduced rate.
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How to Lower Your Withholding Rate: To take advantage of a tax treaty, you'll need to submit a completed Form W-8 to us. Make sure it includes your U.S. Tax Identification Number (like an SSN or ITIN) or your Foreign Tax Identification Number (FTIN). This lets us know you qualify for a reduced rate.
Want to see if your country has a tax treaty with the U.S.? You can check the list of countries with active treaties here.
*US sourced royalties mean any royalties that were earned by a royalty bearing event in a specific country. For example, a stream that was listened to by a consumer in the United States would be a US sourced royalty whereas a a stream that was listened to by a consumer in Canada would not be a US sourced royalty.
Disclaimer
This information is provided for general educational purposes only and does not constitute legal, tax, or financial advice. Tax rules can vary based on individual circumstances, and we are not responsible for any decisions or outcomes resulting from this guidance. For personalized advice, please consult a qualified tax professional or attorney familiar with U.S. and international tax laws.