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.