Case Study: a major artist reduces tax rates on global music income with Prager Metis

Major Artist reduces tax rate from 42% to 10.5% with Prager Metis

The customer, a major artist, faced the challenge of high US taxation on income generated from their music copyrights. Prager Metis provided international tax planning services to help structure the ownership and exploitation of these assets in a more tax-efficient manner.

Prager Metis implemented a solution by creating a tax-efficient foreign production and distribution structure for the artist's global sales. This involved transferring existing content and setting up new foreign entities to produce and own music, significantly reducing the effective tax rate. As a result, Prager Metis helped lower the tax rate on reinvested earnings from 42% to 10.5% and reduced the tax on repatriated income to a range of 10.5% to 36%.