Withhold Tax From Your Songwriter's Royalties ✪
By law, you may be required to deduct WHT from your songwriter's royalties. In this article, we will explain how you can set up your WHT responsibilities on Curve.
Set the WHT Rate
In this step, you have two options. You can either set a WHT rate on your Payees, or you can set a specific WHT term on the Contracts.
A. Via the Payees
When setting a WHT Rate on the Payee, one fixed WHT rate will be applied to the Contract's balance once this balance reaches the Minimum Payout and a payment is due. This WHT Transaction will be visible on the Contract's Transaction tab, on the Statement Of Account, and on the Self-Bill Invoices.
To set the WHT Rate on your Payee, please go to Contracts > Payees and add the rate to the Withholding Tax Rate field. You can customise the withholding tax terminology displayed on the statement using the Withholding Tax Wording field. The other fields in the Tax Info area are only relevant if you'd need to add a Tax to your artist's royalties or add a tax to your commission.
B. Via the Contracts
Alternatively, the WHT rate can be set via a Withholding Tax Deduction term on the Contract. The main difference is that the WHT will be calculated on the total income rather than the Closing Balance. As a result, the WHT will be deducted from the songwriter on a line by line basis during the royalty calculation process, and therefore not just be displayed on the Contract's balance and Statement Of Account, but also in the Sales CSV.
Furthermore, you will have the flexibility to add conditions to the WHT, and get Curve to only apply WHT for sales in a particular Territory for example.
To set the WHT Deduction term on your Contract, please go to Contracts > Contracts > Terms.
Enable Deduct Withholding Tax on the Contract
Regardless of whether you select option A or B in step 1, only when the Deduct Withholding Tax option is enabled on your Contract, a WHT will be applied to the artist's royalties.
Review the Output
You can view the WHT deducted as a Transaction on the Contract's balance, in the Statement Of Account and in the Self-Bill Invoices.
When the WHT was set as a term in the Contract, you will also be able to view the WHT in the Sales CSV. When the WHT was set as a rate on the Payee, the WHT Transaction will only be created once the the balance reaches the Minimum Payout.