Canadian Musicians, U.S. Royalties, and ITIN Questions
If you do business in the United States, you may have heard that U.S.-source royalty income can be subject to 30% withholding by default. For Canadians, the process is not always as simple as “get an ITIN and the problem goes away.” In many cases, the first form that matters is Form W-8BEN , which is given to the U.S. payer or withholding agent to claim any treaty benefit that may apply. An ITIN may still be needed in some situations, but whether you need one depends on your exact circumstances and what the payer requires. I’m not an accountant or tax lawyer, so use this as a general guide only and verify the details with the current IRS instructions before relying on them. Step 1: Find out whether your payer needs Form W-8BEN, an ITIN, or both If you’re a Canadian musician receiving U.S.-source royalties, start by asking the U.S. company or payer what documentation they require. In many cases, treaty benefits are claimed through Form W-8BEN , which is the ...