In Belgium, performing artists’ neighbouring rights are subject to withholding tax. By law, PlayRight is obliged to withhold 15% tax (minus flat-rate costs) from any rights it pays out. PlayRight then passes on this withholding tax to the Belgian State.
The gross ceiling of neighbouring rights is indexed annually, for the 2022 income the limit is €64.070 (2023 tax return). When copyrights and neighbouring rights received in 2022 exceed the ceiling of €64.070, the collecting societies are required to apply a withholding tax of 30%. If your neighbouring rights exceed the amount of €64.070 we recommend to consult a tax specialist who can give you advice relevant to all the elements of your personal situation.
*Those costs are seen by the government as costs incurred by the artist to do the recording. No withholding tax is then due on those costs.
For example: if the artist has received e.g. €1000 in rights in a given year, €500 is seen as expenses and only half is deducted from withholding tax by PlayRight and the artist gets a net €925 (€75 withholding tax, 15% of 500).