Royalty Payments

Royalty Payments

Royalty Payments

Royalty Payments are tax reportable payments.  Use account code 28531 Royalty Payments.

 

Payments for royalties to foreign individuals or entities are required to be taxed where the intellectual property/license is being used.  They are subject to U.S. taxation of either 30% tax withholding or 0% if an applicable article of a tax treaty between the U.S. and the country they are established within is available and formally requested. There are other exceptions to the tax withholding.   If you have questions about royalty payments or payments for software that are being made to a foreign individual or a foreign entity, contact Joy Germack, Sr. Tax Analyst, at 346-0782.  She will need to be notified in order to initiate any applicable foreign payment tax withholding.