Why Do These Forms Even Matter?
When you distribute your music to Spotify or Apple Music through any digital distributor, you're dealing with American companies that operate under U.S. tax law. That law requires these companies to withhold a percentage of your earnings and send it to the Internal Revenue Service (IRS) — unless you provide them with an official document proving your tax status. That document is either a W-8BEN if you live outside the United States, or a W-9 if you're a U.S. resident.
The problem is that many distribution platforms ask you to fill out this form during account setup without ever explaining what you're signing or what withholding consequences may follow.
The Difference Between W-8BEN and W-9 in Plain Terms
- W-9: For U.S. citizens or tax residents. You provide your U.S. tax identification number and take on the responsibility of filing your own tax return in the United States.
- W-8BEN: For non-U.S. residents. It certifies that you are a tax resident of another country, and depending on a tax treaty between your country and the U.S., it may reduce or eliminate the withholding rate on your earnings.
What Happens If You Don't Fill Out the Form?
If you skip the form or delay submitting it, most distribution platforms will automatically withhold 30% of your earnings and send them to the IRS as backup withholding. That means you could lose a third of your music income without ever understanding why.
What Platforms Don't Clearly Tell You
Based on publicly available information in the help centers of these services, here's what typically doesn't make it to the main interface:
- The withholding rate isn't the same for everyone: It varies depending on the type of income (performance royalties, mechanical royalties, etc.) and whether a tax treaty exists between your country and the U.S.
- The form has an expiration date: A W-8BEN is only valid for three years and must be renewed. Some platforms won't notify you when it expires.
- Withholding doesn't mean you're done: In some cases, you may still be required to file a tax return in your home country, since the tax withheld in the U.S. may not automatically be credited there.
- Verification delays can cost you: If the system rejects your form for technical reasons and your account remains without an approved form on file, the maximum withholding rate kicks in immediately.
Practical Steps to Protect Your Earnings
- Step 1 — Determine your status: If you live outside the United States and have no U.S. tax residency, your form is the W-8BEN.
- Step 2 — Look up your country's tax treaty: Check your country's ministry of finance or the IRS website to find out whether a tax treaty exists between your country and the U.S., and what reduced withholding rate it provides.
- Step 3 — Fill out the form accurately: Enter your name exactly as it appears on your passport, your country of tax residence, and your permanent address. Any error can invalidate the form.
- Step 4 — Keep a copy: Save the submitted form and the date it was accepted. You may need it when reviewing your accounts or working with a financial advisor.
- Step 5 — Track the expiration date: Set a reminder two and a half years out so you can renew the form before it expires.
- Step 6 — Consult a tax professional: This article is for general awareness only and does not constitute legal or tax advice. If your music income is significant, consult a specialist in international income tax.
Mazufa and the Topic of Taxes
At Mazufa, we believe every artist deserves to understand exactly where their money goes — from the first stream on a platform to the amount that actually lands in their bank account. That's why we make tax requirements clear during the registration process, because a 0% commission means nothing if a third of it gets quietly withheld somewhere else without your knowledge.
If you have a specific question about your form or tax situation, reach out to our support team or consult a certified tax advisor in your country.