Nonresident Alien (NRA) Withholding
To ensure that foreign artists pay their U.S. taxes, the IRS requires anyone in the U.S. who is paying for services performed by a foreign artist to withhold 30% taxes on all U.S. income of that foreign artist. Anyone who pays a foreign artist for his/her services as a performer (the “withholding agent”) may be liable for the required withholding. The withholding agent may be a promoter, a venue, a presenter, a manager or an agent. It is important to note that if a foreign artist fails to file a tax return and pay his/her taxes, and the person or entity who paid the artist failed to withhold as required, each withholding agent will be held liable for the amount that should have been withheld (although the tax will be collected only once.)