Tax Information - Latigo Music Group

Latigo Music Group is a online label for protection, liability and authenticity.

Here we breakdown how you report your taxes based on platform terms and conditions, which we reviewed for you.

VALUE ADDED TAX

Payment of taxes

You must pay all taxes, duties and government charges imposed or levied in Australia or overseas in connection with the performance of these Terms of Service.

Value added tax

In this Terms of Service, the term Value Added Tax includes:

any applicable value added tax in any jurisdiction; and

GST within the meaning of A New Tax System (Goods and Services Tax) Act 1999 (Cth).

Unless expressly stated, all sums in this Deed are expressed on a Value Added Tax exclusive basis.

Where a party making a supply (the “Supplier”) is or becomes liable to pay Value Added Tax in respect of that supply, the recipient of the supply (the “Recipient”) must pay to the Supplier an additional amount equal to the amount of the Value Added Tax payable by the Supplier (taking into account any tax credits that the Supplier is entitled to claim) in respect of that taxable supply (the “VAT Payable Amount”).

The VAT Payable Amount must be paid on the date which payment in respect of the supply is due.

The Supplier must then remit the amount of the Value Added Tax payable to the appropriate authority.

APPLICABLE LAW

The laws of the State of Queensland govern these Terms of Use and any dispute of any sort that might arise between the parties. Any dispute relating in any way to these Terms of Use will only be adjudicated in the courts of the State of Queensland. Each party consents to the exclusive jurisdiction and venue in these courts.

These are how we handle taxes on DistroBuddy and SDYP Digital. Which applies to both platforms.

DistroBuddy is a digital music distribution service (similar to DistroKid or TuneCore) that uploads your music to platforms like Spotify, Apple Music, and others, allowing you to earn royalties while retaining ownership.

Many music distributors, especially smaller or international ones like DistroBuddy (which appears to handle Australian GST/VAT compliance for sales in Australia), do not issue U.S. Form 1099 (e.g., 1099-MISC or 1099-NEC) to artists. This is common if they are not U.S.-based payers or if earnings fall below thresholds. Larger U.S.-focused ones like DistroKid often do issue them for earnings over $600 (or sometimes lower).

The VAT (GST in Australia) mentioned is likely charged or handled by DistroBuddy on certain sales (e.g., to Australian consumers), but this is their compliance obligation as the distributor. It does not directly affect your U.S. tax reporting—the royalties you receive are still your gross income.

Also, income from music distributors is generally treated as self-employment income for U.S. taxpayers. As an independent artist, you are considered self-employed.

• Report the full amount of royalties received (from DistroBuddy statements or payout records) on Schedule C (Form 1040) as business income.

• Deduct related business expenses (e.g., recording costs, marketing, distribution fees, equipment) to calculate net profit.

• Pay self-employment tax (Social Security and Medicare, about 15.3% on net earnings) via Schedule SE if net earnings are $400 or more.

• The net profit also counts toward your regular income tax.

Even without a 1099, you must self-report all income. Track your DistroBuddy dashboard for earnings reports and payouts. Save records for at least 3 years.

Consult a tax professional or use IRS resources (e.g., Publication 334 for small businesses or Publication 525 for taxable income) for your specific situation, as rules can vary based on total income and deductions. This is general guidance, not personalized advice.