International tax requirements

PPL collects revenue from more than 40 countries and distributes it to members in more than 100 countries. Tax plays a key role in determining the final distribution amounts that are paid. The tax applied to international revenue can vary from country to country. The tax that is generally charged on payments where the income is generated in one country and paid to a recipient based in another country is referred to as ‘withholding tax’ (WHT).

Tax treaties

Double Taxation Treaties are agreements which reduce the rate of tax on payments made between two or more countries. They are designed to protect against the risk of double taxation which occurs where the same income is taxable in two countries.

PPL proactively works with CMOs and foreign tax authorities to utilise these tax treaties to maximise international revenue collections by reducing the withholding tax applied at source to the treaty rate. The tax rates will differ from country to country depending on what has been agreed in that specific treaty but most EU countries reduce the tax rate on royalties to zero.

What can you do?

One of the key factors that will support us to prevent double taxation on your payments is keeping your citizenships, residency and tax residency information up to date. In addition, if you have given PPL the mandate to collect for you in the US then you may need to complete a US Revenue form.

Learn more about QI Status and US tax forms