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 will change, 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’s changing?
- Until now: 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. BumaStemra will take care of your residency certificates directly with the 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? No action is needed.