Do I pay GST / HST on my royalties?
SOCAN members do not pay GST/HST on their SOCAN royalties.
SOCAN collects the GST/HST from the music users (licensees) and remits it directly to the government. Therefore, no GST/HST is either paid with or deducted from your quarterly royalties. SOCAN is registered under the Artist Representative (GST/HST) Regulations of the Excise Tax Act, which means it is in charge of collecting and remitting GST/HST to the government on behalf of our members.
If you are questioned by Revenue Canada personnel, you should remind the representative of subsection 177(2) and the “Artists’ Representative (GST) Regulations” (SOR/91-25) of the Excise Tax Act.
If you have any other tax related questions, we recommend that you consult an accountant.