UK law requires that we withhold 20% of your royalty payment as tax. If you don’t think you should be paying this, you need to get a certificate of residence for the current year issued by your tax authority.
Indeed, Soundreef Ltd is a company registered in the United Kingdom (the UK). Under UK tax law, a withholding tax of 20% applies to your earned royalties. Soundreef Ltd is obliged by law to deduct this tax from your payment and pay it to Her Majesty’s Revenue and Customs (HMRC) on your behalf. However, the UK may have double taxation agreements with your resident country which allows for relief of this taxation by way of reduction of the withholding tax to a lower rate. For example, the double taxation agreement between UK and U.S.A. reduces the withholding tax to 0% which means that if you are resident in the USA we don’t have to apply the withholding tax and you will get 100% of the royalties. In order to qualify for this double taxation relief, HMRC requires you to provide reputable evidence proving that you are a resident in your country and that you are eligible for this relief.
To do so, we require that you send us a certificate of residence for the current year issued by your tax authority.
Once the above is sent to firstname.lastname@example.org, Soundreef Ltd will be able to adjust the withholding tax on your royalty payments to the rate specified in the double taxation.
Please note that the statement above must be sent by 30 days from the day the royalties are published in your account. Until this is received, the withholding tax on your royalty payments will remain at 20%.
We remind you that, in any case, you will be able to deduct the withholding tax paid in UK from your tax declaration.