Creators

Music and audio income: royalties, sync and collecting societies

Updated: 2026-08-17 Holdwise editorial team

Audio income comes in through more channels than any other creator income. These are streaming royalties, sync fees for video, podcast advertising, live performance and licensing your own catalogue. Each channel has its own collector and its own deductions. If you sort them once, you can read the statements and see what you keep. At Holdwise, we keep this answer up to date and change it when the rules change.

The channels

Streaming royalties are paid to you by a distributor or a label, after they take their share.
Rights on composition and lyrics are collected by a collecting society, in the Netherlands through Buma/Stemra, and distributed periodically.
Sync fees come from a direct licence for use in a video, an advertisement or a game.
Podcast income counts as advertising or subscription revenue. See advertising income.

Tax withheld at source

Foreign payers often deduct tax from royalties at source. Under a tax treaty, this tax can be lower or zero. For recipients in the Netherlands, the American rate on royalties is zero once the payer has your residence form. See US withholding for the details. Keep the annual statements from every collector, because they show the amounts already deducted.

Membership of a collecting society

You can join as an individual or through your company, and the choice has consequences. If your company is the member, the rights and the income stay together with the rest of your catalogue. A later sale is then easier. Membership in your own name takes less work at the start. Ask the society how a transfer works before you register, because a change later takes longer.

VAT on audio

For a sync licence to a business in another EU country, the business accounts for the VAT (value-added tax). For a Dutch business, the Dutch rate applies. For royalty payments, the collecting society uses its own settlement, as shown on the statement. Certain supplies by performing artists qualify for the reduced rate, but only in a narrow set of cases. Confirm the VAT treatment for each contract.

The catalogue

Recordings, compositions, artwork and the master files together are an asset. If your holding owns them, they are kept apart from the risks of the operating company. When you sell, they go to the buyer with the company. See selling your channel or brand.

Free advice

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Part of Doing Business in the Netherlands, the complete 2026 guide.

Frequently asked questions

Who collects my music royalties? +

A distributor or label for streaming, and a collecting society for composition and lyrics. Sync fees come from a direct licence with the user.

Why is tax deducted before I receive royalties? +

The paying country withholds tax at source. Under a tax treaty, this tax can be lower or zero. For Dutch recipients, the rate on American royalties is zero once the payer has your residence form.

Should my company join the collecting society? +

If your company is the member, the rights and income stay together with the rest of your catalogue. A later sale is then easier. Ask how a transfer works before you register.