The new offering expands Payoneer’s suite of services for content platforms in the burgeoning digital royalties space
Payoneer the commerce technology company powering payments and growth for the new global economy, announced the expansion of its tax services with the addition of 1042 forms. The new offering simplifies tax obligations for marketplaces and platforms paying digital royalties to non-US residents, and marks further inroads by Payoneer into the music and creative royalties space.
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The growing digital economy has created new and unique business opportunities for international content creators. The content creator economy, one of the fast-growing digital commerce ecosystems, has been estimated to include between 50 and 200 million people.1
Many of the top content consumption platforms – from streaming music to social media – are based in the US and required by the IRS to report the royalties paid to their international creators. This makes Payoneer’s 1042 tax service essential for US-based digital content platforms hosting nonresident creators, helping them meet IRS withholding and reporting responsibilities while saving time and resources by:
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– collecting tax entity information for creators using W forms;
– calculating withholding rates using tax entity information; and
– filing 1042 forms to the IRS on behalf of the platform.
“As a leader in the digital commerce industry, we work to lower barriers that stand in the way of customers’ growth potential,” said Ya Wen, SVP of Americas at Payoneer. “Our new 1042 tax offering minimizes pain points for platforms that pay digital royalties to an ever-expanding base of international content creators. It’s about taking the complexity out of tax withholding and reporting responsibilities with an automated and secure service that manages it for them end-to-end.”
In addition to tax solutions, Payoneer offers companies in the digital royalties space an extensive global banking and payments network that makes it easier and safer for them to pay creators and suppliers located in more than 190 countries and territories around the world.
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