As limbo music is based in Spain, the company is obliged to apply a withholding on the payment of royalties whenever the payment is made to a person/company that does not reside in Spain.
This is established in the so-called Double Taxation Agreements of each country, where the amount that must be withheld in said payments is established.
These amounts are based on the fact that the beneficiary of the payment can prove his tax residence by means of a certificate, which is usually called the Tax Residence Certificate. If you do not have this document, the withholding established by law is 24%.
Do I lose the money from the withholdings?
limbo music pays these withholdings to the Spanish state so that this report can be made to the rest of the countries where they have been exercised. If your legislation allows it, you can deduct the withholdings you have suffered when you file your country's taxes.
For more information about this write to us at [email protected]
