Suspension of royalties distribution from France
Because of unresolved withholding tax issues with the French tax authorities, and pending a clear solution, SUISA has temporarily suspended distribution of royalties from France.
The French tax authorities no longer recognise SACEM’s sister societies as beneficial owners in respect of the royalties due to their members with the result that such royalties would be subject to a 25% withholding tax deduction.
SUISA is currently in talks with SACEM and the French tax authorities with a view to preserving its beneficial ownership status. Under the circumstances, it was decided that SACEM would retain the royalties for the time being and only pass the corresponding amounts on to SUISA once the facts have been set straight with the French tax authorities.
This situation affects SUISA as well as other collective management organisations that are also looking to resolve the issue with the French authorities.
The circumstances are regrettable. We are doing our utmost to ensure our members receive their royalties, readily and with the minimum possible deductions.