In recent years, a wave of Nigerian entertainers musicians, filmmakers, comedians, and digital creators have broken into the global scene, with a significant part of their audience (and income) coming from the United States. Streaming platforms like Spotify, Apple Music, YouTube, and Netflix have made it easier than ever for Nigerian talent to earn royalties and digital revenue from U.S. audiences.
However, many artists are caught off guard when they discover that a substantial portion of their income sometimes up to 30% is withheld by the U.S. government as tax. This is not a mistake; it is standard IRS policy for foreign persons earning income in the United States. What most entertainers don’t know is that they may be eligible to recover a large part of that money legally.
To do this, the entertainer needs an Individual Taxpayer Identification Number (ITIN) and must file a U.S. non-resident tax return.
This process requires certain documents, including:
• A valid international passport or certified copy
• Form W-7 (Application for ITIN)
• Proof of U.S.-source income and tax withheld (such as Form 1042-S from platforms or distributors)
• A completed Form 1040-NR (non-resident tax return)
But there’s more to consider. While trying to recover funds from the United States, Nigerian entertainers must also be mindful of their home country tax obligations. According to Nigerian tax laws, global income is subject to personal income tax, especially for residents. That means any revenue recovered or earned abroad may still be subject to assessment by the Federal Inland Revenue Service (FIRS), unless specific exemptions or reliefs apply.
For this reason, it’s essential to work with legal and tax professionals who understand both the U.S. and Nigerian tax landscapes. A skilled lawyer can not only assist with obtaining an ITIN and filing the correct returns in the U.S., but also guide you on how to remain compliant with Nigerian tax laws while maximizing your earnings.
In the world of entertainment, every percentage counts. Don’t leave your money behind because of a lack of awareness. If you’re a Nigerian entertainer earning income from the U.S., now is the time to reclaim what’s yours with the right legal guidance.
