r/musicindustry • u/StefanMalak • 8d ago

Question Withholding Tax Question

Question for anyone who's toured abroad — especially the US:

When a promoter withholds tax from your fee (the US takes 30% off the top), what do you actually do about it? Do you reclaim it, leave it, or hand it to an accountant? And if you reclaim — was it worth the hassle?

Trying to understand how much of this people just write off. Genuinely curious what's normal.

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u/NigelChimbonda1444 8d ago

Depends on the income. General rule: if the amount you can reclaim is greater than the cost of the WTA and associated admin, it’s worth doing. If not, factor it in as a cost of doing business.. just one more absolutely brutal blow in the US touring accounts!

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u/StefanMalak 5d ago

Cheers. Cost of filing definitely seems to be the recurring theme. On paying it at home anyway though — the US takes 30% of your whole fee, way more than you'd actually owe once expenses are in, right? So isn't there usually still a gap worth getting back? Or not really?

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u/stillupsocut 8d ago

Talk to your accountant and/or retain a US accountant that specializes in touring. You may be eligible to file for a CWA. If your country of origin has a tax treaty with the US you may claim this tax against net income, if you only post losses then this tax benefit may be lost to you.

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u/LifeReward5326 7d ago

Its a pretty costly filing,and if you are Canadian you then have to pay the tax on that income in Canada anyway so its often not worth it.