Withholding tax starting 2025
If you earn income from your music abroad, you pay withholding tax. Starting in 2025, the way BumaStemra handles withholding tax has changed, and this may impact you. Here’s what you need to know.
What is Withholding Tax?
Withholding tax ensures that foreign income, such as royalties, is fairly taxed in the country where it is earned. This prevents income from being shifted to another country without being taxed.
What has changed?
- Until 2024: BumaStemra has settled foreign withholding tax directly with the Dutch Tax Authority.
- From 2025: You will need to claim back withheld foreign taxes yourself through your annual tax return. BumaStemra will include the relevant amounts on your year-end statement.
- This change could benefit you if you earn substantial foreign income subject to withholding tax.
How is BumaStemra helping?
To benefit from a favorable tax rate, you need to prove where you are a tax resident. This is done with residence certificates per country. The Dutch Tax Authority has granted BumaStemra permission to request these residence certificates on your behalf, if you are a resident of the Netherlands. We can do this for you if your BSN or RSIN and your residential address are known to us. This allows us to inform foreign organizations that you are a tax resident in the Netherlands, ensuring you qualify for a lower withholding tax rate.
What actions should you take?
If you’re a tax resident in the Netherlands:
- You don’t need to take any action. Just make sure your information in MijnBumaStemra is correct. BumaStemra will take care of your residency certificates directly with the Dutch Tax Authority and foreign organizations.
If you’re a tax resident outside the Netherlands:
- After January 1, 2025, request residence certificates for 2025 yourself and upload them in mijn.bumastemra.nl. We will share your tax residency details with foreign organizations.
- Prefer to manage everything independently? Just let us know.
Need help?
Do you need help of do you have questions? Check out the frequently asked questions (FAQ) below about withholding tax. If your question isn’t listed, feel free to email us at members@bumastemra.nl. For specific matters, we recommend contacting a tax advisor.
Frequently asked questions about witholding tax
What does BumaStemra do with the residence certificates after you have requested them from the Dutch Tax Authorities?
We store the data in our system and indicate that we have valid residence certificates available. These are made accessible if the tax authorities of the foreign sister organization request them.
#permalinkI see that I can only enter one address in MBS, but my fiscal address is different from my mailing address. Which one should I enter?
The address in MijnBumaStemra should be your fiscal address. If your mailing address is different from your fiscal address, please contact us at members@bumastemra.nl.
#permalinkWhy do residence certificates need to be requested now and not before?
Previously, it was not technically feasible for either the Tax Authorities or BumaStemra to make these calculations.
#permalinkDoes withholding tax apply to all rights holders earning money from abroad?
Yes, everyone pays withholding tax on usage from abroad where withholding tax applies.
#permalinkHow long are residence certificates valid?
If you are fiscally resident in the Netherlands, the residence certificates are valid for one calendar year.
If you are fiscally resident abroad, it depends on the regulations of the respective country. For example, in the United Kingdom, the validity is from April 2025 to April 2026.
#permalinkWhat if I move to a different address?
Have I paid double tax in the past?
No, you have not paid double tax. BumaStemra has benefited partially and has been able to provide a more affordable service to our rights holders as a result.
#permalinkIf I have received a lot of foreign usage in the year prior to 2025, and it is paid out starting in 2025, do I also need to pay withholding tax on this?
Yes, the foreign sister organization has also withheld withholding tax for the previous years. The Dutch tax authorities have not been involved in this.
#permalinkWhat is meant by the high and low rates, and what are the percentages?
If there is no treaty between countries regarding withholding tax, you fall under the high rate. The percentages vary by country and can be found on the tax authority’s website of the relevant country.
If there is a treaty between countries regarding withholding tax, and you can prove with residence certificates that you are fiscally resident in the Netherlands, you fall under the low rate. The percentages vary by country and can be found on the tax authority’s website of the relevant country.
#permalinkA portion of the royalties from online streaming in Europe is settled by BumaStemra. Do you also pay withholding tax in the country where the streams were played?
What does BumaStemra do with the residence certificates that I have requested myself and uploaded in MijnBumaStemra?
Are there any benefits for fiscally resident Dutch individuals to request the residence certificates themselves from the Dutch Tax Authorities?
There is no difference. We are happy to take care of this for you.
#permalinkIs it indicated on the annual statement which withheld withholding tax applies to my income
Yes, the annual statement shows which withheld withholding tax applies to your income.
#permalinkHow do I know which part of the already withheld tax abroad I can offset against my tax payable in the Netherlands? Does this also apply if I am fiscally resident abroad?
With the annual statement, you can calculate which part of the already withheld tax abroad can be offset against your tax payable in the Netherlands. You do not have to pay double tax.
Does this also apply if I am fiscally resident abroad?
You should ask your tax advisor this question, as it may vary by country.
#permalinkWhere can I find information about withholding tax on the tax authorities’ website?
On the website of the Dutch tax authorities, you can only find information on how to offset the withholding tax paid on royalties against the tax due.
For foreign tax authorities, you must check yourself how much withholding tax you have paid.
#permalinkDo you have an overview of all countries that levy withholding tax?
In your annual statement you can see an overview of your withheld withholding tax per country.
#permalinkWhat have you done with the tax benefit from all previous years?
BumaStemra has offset this with the tax payable, keeping the administrative costs low.
#permalinkHow have other CMO’s dealt with this in recent years?
This varies by country. Some countries have adopted our new method, while others still follow our old method.
#permalinkI have residence certificates from the consulate, is this also allowed?
Unfortunately, these are not the residence certificates we require. The residence certificates must be requested from the tax authorities in the country where you are fiscally resident. You can request the certificate after January 1, 2025, for all countries from which you receive income.
This is necessary because the residence certificate is not only required for the country of your fiscal residence but also for each other country from which you receive income. This may be important for determining your tax obligations in different countries.
#permalinkI requested residence certificates in 2024, do these also apply?
No, the residence certificates must be requested after January 1st, 2025, for all countries from which you receive income. You need to request new residence certificates every year.
An exeption to this is the United Kingdom. Are you residing here? Please note that the fiscal year starts on April 6th.
#permalinkI don’t know for which countries I need to request residence certificates.
If you are a foreign tax resident and have to request the residence certificate from the tax authorities of that country yourself, we know whether the countries below levy withholding tax due to the treaty between the Netherlands and these countries.
This overview may very per year and per country. You can request residence certificaties for all countries, even if you may not receive music usage payments from these countries or if there may not be a treaty between the country where you are fiscally resident and the mentioned countries.
- Belgium
- France
- Greece
- Indonesia
- Lithuania
- Austria
- Serbia
- Slovenia
- Germany
- Bosnia-Herzegovina
- India
- Japan
- Poland
- Portugal
- Taiwan
- Czech Republic
- Brazil
- Bulgaria
- Finland
- Hong Kong
- Iceland
- Israel
- Croatia
- Malaysia
- Mexico
- Montenegro
- Romania
- Singapore
- Slovakia
- Spain
- Thailand
- Turkey
- Vietnam
- South Korea
- United Kingdom
- Albania
- China
- Estonia
- Georgia
- Hungary
- Kazakhstan
- Latvia
- Macedonia
- Panama
- South Africa
When will I receive my annual statement?
The withheld withholding tax from the settlement year can be found in the annual statement that you receive from us at the beginning of the following year.
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