faq answer
Tax, VAT and other issues
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Is there a procedure for tax exemption for advances and royalties?
Though we are unable to advise definitively on the issue of tax exemption in the case of advances and royalties, you might find the following approach helpful:
You should firstly gain confirmation form the author or agent that they:
- satisfy the requirements of the Double Taxation Treaty
- hold a certificate of residence from their tax authority
- can produce evidence that they are benefically entitled to royalty payments and that these payments will be subject to their country's taxation
- can provide the above documentation, if requested
- will notify you immediately of any changes in their tax status
You may also decide to seek an indemnity.