APRA and AMCOS royalties are paid before tax and members report this as income received on their relevant tax returns. Any withholding tax paid, should also be reported on relevant tax returns.
Members should seek advice from a qualified tax adviser regarding the tax implications surrounding their personal circumstances when compiling their income tax returns.
Withholding Tax
Members resident in New Zealand or Australia receiving royalty payments from Australian and foreign sources.
Members who receive royalties from foreign sources usually have withholding tax deducted by the remitting affiliated society ranging from 5% to 30%. Those members that are tax residents of New Zealand will also have Australian withholding tax deducted from their Australian sourced royalties at 10% before their payment is remitted to them. If you are a tax resident of Australia then Australian tax law applies. For more information click here.
Members not resident of New Zealand or Australia receiving royalty payments from Australian and foreign sources.
In addition to the withholding tax deducted by the remitting overseas affiliate society on foreign sourced royalties, Australian withholding tax is deducted on Australian sourced royalties ranging from 5% to 30%.
Members resident in New Zealand or Australia receiving payments of royalties sourced from New Zealand.
Those members that are tax residents of New Zealand will not have withholding tax deducted from their gross royalties. Members that are tax residents of Australia will have New Zealand withholding tax deducted from their New Zealand sourced royalties at 10% before their payment is remitted to them.
GST
If a member is individually GST registered then APRA New Zealand Limited can pay the goods and services tax (GST) on the royalties earned within New Zealand. Please note overseas royalties, including Australia, are zero rated, because they are classified as export earnings.
APRA New Zealand Limited has approval from the Inland Revenue Department to issue Buyer Created Tax Invoices (BCTI's) for the royalties and the GST. To initiate this, we need to have a valid BCTI agreement with our GST registered members. This agreement will allow APRA New Zealand Limited to automate the process of members receiving payment for GST on royalties by automatically adding GST at the time of payment and also issuing a BCTI. Please contact APRA’s Member Services Department for a BCTI agreement or if you have any queries.
ABN
An Australian Business Number (ABN), is only required for Australian citizens/residents who pay tax in Australia. If you move to Australia or if you pay tax in Australia, you may need to obtain an ABN. You can apply for an ABN on the same form you use to register for GST. If you earn more than $500 in royalties from APRA, then you must give APRA your ABN. Without this on file, under the Pay As You Go (PAYG) regulations, we must deduct a 48.5% withholding tax from your royalties. For more information click here.