- How will I be notified of the payments made?
Online notification of payments
You will be notified via your email address and your My Koda profile when you receive payments from Koda. The minimum limits for payments made are DKK 100 for payments to Danish accounts and DKK 1,000 to foreign accounts.
Do we have your correct email address?
It is very important that we have your correct and current email address; we need it to keep you informed about the payments made to you. If you are a registered My Koda user, you can log on and check your email address by accessing "My profile".
- Nemkonto (Easy Account) or foreign account
Your payments from Koda will be made to the NemKonto (Easy Account) system. You do not need to do anything unless you want your payments to be made to a different account instead of your officially assigned NemKonto.
Your details in the NemKonto system
You can change your details at www.nemkonto.dk by logging on with your NemID code card. You can also contact NemKonto Support to check your details in the NemKonto system and/or to get help changing those details. To contact NemKonto Support, call (+45) 44 60 63 68 or e-mail email@example.com
Payments to alternative or foreign account
If you do not want your payments from Koda to be made to your NemKonto account, you can ask us to register a different bank account for you. To do this, contact Koda's Publishers and Member Service via e-mail firstname.lastname@example.org or by calling (+45) 33 30 63 20.
If you live in Greenland, the Faroe Islands, or outside of Denmark you cannot use the NemKonto system. In such cases we need an alternative (foreign) bank account number.
Notifications in accordance with the Personal Data Protection Act
Because your NemKonto data will be electronically exchanged between the NemKonto system, our bank, and Koda, you are legally entitled to receive the following notification in accordance with Section 29 of the Danish Personal Data Protection Act (Persondataloven).
The objective of any electronic exchanges of your NemKonto information is solely to handle any upcoming payments from us to your NemKonto.
- Assignments, Garnishments and payments to third party
You have the opportunity to assign your payments from Koda and NCB to a third party. There may be several reasons for entering into such an agreement on assignation. Often it will be because some other party has some outstanding financial claim with you. Assignment is a voluntary agreement between you as a member and a third party.
Assigning payments to music publishers
If you received an advance when entering into a contract with your music publisher, you can assign your payments from Koda and NCB to your publisher. Assignment agreements of this kind are not subject to a specific time limit, but will stay in effect until the advance has been recouped. We assume that the publisher will at least once a year give the author a status report on the current recoupment status of the advance paid out.
Assigning payments to others
You can also agree to assign your payments to others, e.g. a manager, booker, or legal advisor. Such assignment agreements are always subject to a time limit and are only valid for one year at a time. After this point they must be renewed, meaning that a new assignment declaration must be sent to Koda.
PLEASE NOTE! An administration fee of DKK 500 will be charged for each registered assignment of this type. The amount will be deducted from assignee’s account when the assignment is registered.
The following applies to both types of assignment:
- A signed assignment declaration must be submitted to Koda when the agreement is entered into.
- You only need to send the assignment declaration to Koda<>Clearly state whether the assignment declaration applies to payments from both Koda and NCB.
- You cannot terminate an assignment agreement by contacting Koda. This can only be done via the assignee.
More details about Koda’s and NCB’s rules on assignments and garnishments (pdf)
Notifying the tax authorities of assignments of payments
Please note that even though payments from Koda and NCB have been assigned to a third party or are sent to a separate payment address for other reasons, we will, unless otherwise noted, report the payments to the tax authorities (SKAT) as personal income for the member whose works earned the money.
This practice is followed because the rights continue to belong to you as a member, and we are obligated by law to report the income generated by the rights holder(s) even if they are not the person(s) actually receiving the payments.
Unlike assignments, garnishments are usually not the result of a voluntary agreement. At Koda the vast majority of requests for garnishments come from the tax authorities (SKAT) because they have an outstanding claim with the relevant member; they will then seek to cover this debt by seizing that member’s payments from Koda/NCB.
- We accept a garnishment period of no more than one year.
- Distributions to your company
If you would like your distributions from Koda to be paid out to your company, you can fill in and send a statement asserting the transferral of your rights to the company in question by sending an email to email@example.com or a letter by regular mail.
Certain requirements apply to such a transferral of rights:
- The company must be entirely yours (100% owned by you).
- The rights cannot be transferred on to any third parties from the company.
You should also be aware that transferring your rights to your own company means:
- That all distributions/income will be paid out to your company from that point on.
- That all distributions/income will be reported to the tax authorities as being paid out to your company.
- Taxes on your income from Koda
Your income from Koda and NCB is officially designated as so-called B-income (B-indkomst). Please note that this means that no taxes have been deducted from the amount you receive from Koda. We advise all members to set aside funds towards paying the taxes later. We will submit information about your income to the Danish tax authorities, SKAT.
Tax authority notification – personal members
The Danish tax authorities, SKAT, will be notified of your income from Koda via your social security number (CPR). This is usually also the case when the payment is in fact made to a third party, e.g. a publishing company or a enterprise with the right of assignment or garnishment (transport eller udlæg) pertaining to your Koda income.
Tax authority notification – others
Koda may notify the tax authorities (SKAT) that someone other than a personal member has received income from Koda, for example if such payments are made to a publishing company or other enterprise. We may notify the tax authorities of income paid out to someone other than yourself in the special circumstances outlined below:
- Advance from publishing company
You have received an advance from your publishing company, and the company will receive your Koda income until the advance has been recouped. The publishing house must be able to document that they have paid out an advance. We can list the publishing house as recipient for tax purposes until the advance has been recouped in full. If we do so, this should be explicitly stated in the agreement entered into between the publishing company and the Koda member.
- The author is a company
You are the sole shareholder and owner of a company/enterprise and handle the rights to your music yourself. In future we can, if you prefer, notify the tax authorities of payments made to the company or enterprise listed as recipient of the payments made by Koda. Koda must see documentation proving that you are the sole shareholder and sole owner of the company.
- If you do not have a Danish CPR number
Are you not in possesion of a Danish CPR number, if you eg. do not live in Denmark or is a citizen of another country we are obliged to send your name and birthdate to SKAT. Hereafter, SKAT will contact your local tax authorities in the country you live in.
Self-employed individuals and the Danish company taxation scheme
If you are self-employed you can also employ the Danish “Company taxation scheme", a provision under Danish law that allows you to enjoy a range of the economic and tax-related benefits usually associated with operating a company-type enterprise. Here, payments will be made to you personally, and the amounts paid out will be registered with the Danish tax authorities using your personal social security (CPR) number. You hold sole responsibility for distinguishing between your personal finances and your company finances.
General questions about tax
Please note that we do not offer tax advice to our members. If you would like to address a particular tax-related issue and/or need assistance and advice, please contact the tax authorities/SKAT instead.
If you believe that the distribution of payments made to you is incorrect, you must state your claim no later than 36 months after the projected time of payment. It is important that you contact us as soon as possible if you find any errors or have any questions about your payments.
If you wish to make a complaint, please send an email to firstname.lastname@example.org. Provide as much detail as possible; we will then process your claim.
We will need the following information
- The title of the work in question
- Where the work was used (what channel)
- When the work was used (during what period)
Read about the possibilities of claims within Koda here
- Errors in distributions received by you
Don’t forget that when you receive distributions from Koda, it is your duty to check whether the amounts received seem reasonable and correct to you.
Every year, Koda distributes millions to rightsholders in Denmark and abroad. Before those distributions are made, the money received by Koda from its customers and from abroad is apportioned on the basis of our information about the works and their use.
This is a very complex undertaking, so errors can occur – both human and systemic – so that a given member does not get exactly the amount they were supposed to receive.
Errors are detected either by Koda members themselves, or by Koda during its post-processing and auditing activities.
What does Koda do then?
Whenever Koda becomes aware of an error, that error will be corrected. Rightsholders who have received too little will receive the outstanding amount.
When someone gets too little, others have gotten too much and vice versa. This means that any rightsholders who have received excessive distributions will have their future payments amended so that the funds paid out in error are returned to Koda. If we did not do this, all of Koda’s members would suffer when we adjust distributions that were too small.
What if I need to pay back excess distributions?
We fully realise how troublesome it can be if it turns out that you have accidentally received too much money. But Koda will only ask for a total, immediate refund in very special cases where it is instantly and absolutely obvious – for you too – that you have received too much. As a rule, Koda will adjust excessive distributions by reducing your future distributions, just like when an advance from a music publisher or record company is recouped.
The steps of bankruptcy proceedings in brief
When a natural or legal person (company) can no longer fulfil its obligations as they fall due, that person is said to be insolvent.
When a person is insolvent, bankruptcy proceedings are launched against the estate of said person. Bankruptcy proceedings are launched when either the debtor himself or a creditor submits a bankruptcy request to the local probate court or the Danish Maritime and Commercial High Court (Sø- og Handelsretten).
From the time when the probate court or the Maritime and Commercial High Court issues a bankruptcy order, the person loses their right to dispose of their assets. For example, the person can no longer transfer their assets or receive payment.
The probate court appoints a person responsible for the estate, a trustee. The trustee must collect information about assets and liabilities, settle any outstanding balances, liquidate assets, etc. When the trustee's work is completed, the estate’s final accounts are drawn up. In some cases, money is distributed to the creditors at this stage. In other cases, the final accounts are drawn up and the estate wound up because the trustee finds that there are no funds to cover the cost of continued case processing for the estate.
The rules governing bankruptcy proceedings in Denmark can be found in the Danish Bankruptcy Act (Konkursloven).
When Koda members go bankrupt
Occasionally, a Koda member – a composer, lyricist or music publisher – is declared bankrupt.
A Koda member’s bankruptcy will be dealt with in accordance with the general bankruptcy rules. However, because copyright is a special form of property, the trustee cannot simply sell the works or work shares created by the composer, copywriter or publisher the way that he would sell inventory from a bankrupt restaurant or bookstore.
So if you or your music publisher goes bankrupt, it is important for you and for Koda’s management of your rights that you contact Koda’s Repertoire Department as soon as possible.
Koda will then contact the bankruptcy estate trustee in order to inform them of the distinctive nature of copyright and your Koda rights.