Foreign Royalties

Foreign Royalties are NOT residuals

Foreign royalties are collected as a result of laws in other countries. Those laws provide for payments to artists in audiovisual works to compensate for private copying (home taping), cable retransmissions, video rentals and other uses of such works. Screen Actors Guild has entered into cooperation agreements with collecting societies in certain foreign countries who collect these royalties. The societies allocate a portion of the royalties collected to those SAG performers who appear in audiovisual productions that are subject to remuneration under the local laws. The royalty payment results from the collections and distributions made under those foreign laws and collecting society agreements.

Some special rules apply to these royalties:

• Foreign royalties are not commissionable to your franchised talent agent under the SAG Agency Regulations but may be so under a general services agreement with a non-franchised agent.
• Foreign royalties are not subject to Pension and Health contributions, therefore will not be reflected on your earnings statements from the Plans. You are not required to pay dues on these monies. SAG has taken a fee to cover the actual costs of collection, administration and distribution.
• No taxes are withheld from these payments. Please consult your tax professional with respect to tax consequences.