Catapult is required by U.S. law to withhold specific earnings from the payments we send to our foreign users. Depending on your circumstances, Catapult may withhold a portion of a user's payment for filing and remittance to the United States Internal Revenue Service (IRS).
For Non-US residents or corporations (who do not pay taxes to the United States), and who receive payments for US sourced royalties*, the statutory withholding rate is 30%. This rate can be reduced depending on if the person's country has entered into a beneficial treaty with the United States, but please note that not all countries have this treaty with the United States.
To claim treaty relief, the non-US taxpayer must submit a properly completed Form W-8 with Catapult that includes a U.S Tax Identification Number (SSN or ITIN) or Foreign Tax Identification Number (FTIN).
To find a list of countries that the United States currently has a tax treaty in force please visit here.
Additional helpful information for Non-US taxpayers may be found at the following IRS publications and links:
| Tax Withholding and Estimated Tax | IRS Publication 505 |
| Withholding of Tax on Nonresident Aliens and Foreign Entities | IRS Publication 515 |
| U.S. Tax Guide for Aliens | IRS Publication 519 |
| Taxable and Non-taxable income | IRS Publication 525 |
| U.S. Tax Treaties | IRS Publication 901 |
| U.S. Tax Treaties List | IRS United States income tax treaties - A to Z |
*US sourced royalties mean any royalties that were earned by a royalty bearing event that took place in the United States. 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.