PPL can collect up to 100% of revenue for members due to tax status in USA

One of the many benefits of PPL’s international service is the US revenue status we have been granted by the IRS. This allows us to distribute more of the revenue we collect on our members’ behalves from the US collective management organisation (CMO), SoundExchange.

Under US tax law, the IRS imposes a 30% ‘withholding tax’ on all royalty payments made to non-residents, including revenue collected from SoundExchange. However, in 2009 PPL became the first music licensing organisation to be granted ‘Qualified Intermediary’ (QI) status by the IRS, which means we are able to pay you the US monies we collect for you inclusive of some or all of this tax.

All members have to complete a US revenue form to benefit from PPL’s tax status in the US. Once completed, the form is generally valid for three years (this depends on the form required). PPL is then responsible for administering the correct rate of tax, depending on where the member is based. In the case of UK members, that means they pay no tax on their US royalties, thanks to the UK’s tax treaty with the US. For non-UK members, the tax might be 5% or 10%, depending on the arrangements their resident country has with the US.

If a member does not complete the form, PPL is obliged to return the 30% withholding tax to the IRS. 

If you need to complete the form, we will contact you. If you have been contacted and asked to complete a form but have not yet returned it, now is the time to do so. If you have any questions or need any help filling out the forms, please contact the PPL Member Services team by calling 020 7534 1234 or emailing memberservices@ppluk.com