Your annual statement is available online on 17 January 2020. You can access it via mijnbumastemra.nl. Don’t have an account yet? You can make a new account in a few easy steps via this link.
Buma/Stemra has to send all the details on the annual statement to the Dutch Tax and Customs Administration in a so-called “IB47” data file. The Tax and Customs Administration uses this information to make sure your income tax returns have been filled in properly.
The way you will have to declare this income in your income tax return will depend on which capacity you receive copyright royalties. For example:
- As an author or composer in the capacity of a private person (natural person): your copyright royalties will be treated as taxable income from work and will therefore have to be declared in your income tax return in Box 1.
- As a sole trader or self-employed person (natural person who is an entrepreneur for tax purposes): your copyright royalties will be treated as taxable profits from business activities and will therefore have to be declared in your income tax return in Box 1.
- As a private company (a legal entity which is a business for tax purposes): your copyright royalties will be treated as taxable profits from business activities and will therefore be subject to corporation tax (VPB).
- As an heir: your copyright royalties will be treated as taxable income from savings and investments and will therefore have to be declared in your income tax return in Box 3. The amount of tax that will be levied will depend on a (current) valuation of your copyrights. No tax is deducted from the amounts that are actually paid out. You can contact a tax adviser in order to arrange a valuation.
In all cases, you are personally responsible for the filing of complete and accurate tax returns.
Payment of VAT on Buma/Stemra income:
Composers and lyricists are exempt from the payment of VAT insofar as it involves the supply of services in relation to their copyrights. In other words: the amount you receive from Buma/Stemra does not include any VAT, and you therefore do not have to remit any VAT on this amount. In certain cases, if an author has formed a private limited company or public limited company, then it can charge VAT to Buma/Stemra for the Buma/Stemra distributions.