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Streaming Tax

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The CNM (the national music centre) was established in 2020 with a budget of 30 million euros allocated to support the French music sector.


Why a streaming tax?

  • The CNM (the national music centre) was established in 2020 with a budget of 30 million euros allocated to support the French music sector. This funding primarily came from the proceeds of the tax on live shows, covering half of the identified needs outlined in the public report that led to its creation. Consequently, the final financial balance remained to be determined.
  • In this context, as the music sector began recovering from the health crisis that had suspended all budget discussions, Emmanuel Macron requested consultations with the music industry in July 2022 to establish a new source of funding for the CNM. He mentioned the possibility of a tax on streaming services.
  • In the context of the Finance Law for 2024, the French Parliament adopted a tax, effective from January 1 of this year, on the provision of paid or free services offering access to recorded music, commonly known as the “music streaming tax.” The revenues generated by this tax are allocated to the CNM and are subject to an annual cap.

Who pays the tax?

  • Payers of the streaming tax are legal persons, whether based in France or not, who engage in the rental of, and collect associated revenues from, recordings or music videos owned by legal persons based in France.
  • The term “rental of recordings or music videos” refers to providing the public with a service that, at its core, grants access, for a fee or for free, to recordings or music videos upon individual request via an electronic communication method.

=> Music streaming platforms operating on a subscription or advertising-funded model are specifically targeted.

=> However, services primarily dedicated to providing information about musical works and their promotion are not affected.

What is the base? What rate?

  • The tax is based on the amount, exclusive of value-added tax, of:
  • The price paid by the public for the aforementioned services;

=> 100% of this income is taken into account for the final tax calculation

  • Sums paid by advertisers and sponsors for the broadcast of their advertising messages on a service providing or allowing access to recordings or music videos, or providing free access to content created by private users for sharing and exchanging within communities of interest.

=> 34% of this income is taken into account for the final tax calculation

  • The base is determined, for each calendar year, as the fraction of the sum of these amounts exceeding the threshold of 20 million euros. This threshold is assessed separately for each service. When multiple individuals are liable for a tax on the same service, the 20 million euro threshold is divided among them according to the amounts collected.
  • The tax rate is set at 1.2%, and it is triggered at the end of the calendar year during which the income was generated. It is due whenever the sums cited above exceed the 20 million-euro threshold.

How is it collected?

The tax is collected and controlled by the DGFIP (the directorate general of public finance) using the same procedures as the one for the collection of VAT (Value Added Tax). Companies will be required to declare the tax on an annex to the monthly VAT declaration submitted to the DGFIP services.

It’s important to note that the declarations have been made available online on the impots.gouv.fr website and are therefore accessible to businesses from now on.

For the procedures enabling the transfer of the amounts collected by the DGFIP to the CNM, the relevant DGFIP office now falls within the purview of the Ministry of Culture’s taxation functions.

What is it for?

The revenues generated by the streaming tax complement those from the live performance tax to fund the CNM’s aid program. The institution’s management expenses, funded by a subsidy for public service from the Ministry of Culture, are not affected by the tax.

The CNM’s aid program aims to support the diversity of the French music industry, whether through aesthetic, regional, or economic models.

The CNM’s aid program aims to support the diversity of the French music industry, encompassing diverse aesthetics, regional and economic models.

It is designed to benefit all stakeholders in the record industry, the live industry, music publishing and record stores through specialised assistance tailored to the specific needs of these sectors.

The institution’s intervention framework also includes a set of cross-sector funding intended to support the industry in addressing major contemporary challenges, such as ecological transition, innovation, international development and gender equality.