Now that international touring is coming back in force, I thought it would be a timely moment to give a USA touring withholding tax 101.
Firstly, Australian artists touring the USA may be subject to both Federal and state taxes.
When it comes to federal withholding tax, promoters will generally be required to withhold 30% tax from any performance fees.
As an Australian business you generally have one of two options:
As of the last few years the US government has brought in a new tax free threshold for foreign businesses, so if performance fees are below (insert figure) it may actually be a third option to avoid the federal withholding.
Further to the above there’s also a maze of rules around contractors, getting social security or ITIN numbers, state taxes and payroll issues for contractors.
If you need any help to stay compliant with the IRS (USA tax office) please chat to one of our Business Management team on firstname.lastname@example.org
Gild has a great team of USA accountants and withholding tax agents that we work with to help you navigate through these requirements.