Exhibition in France of works by foreign creative artists (graphic artists, sculptors, photographer
Monday, 19 July 2004
Page 4 of 5
Income tax and withheld tax due in France
Revenues subject to income tax in France, declaration to be filed by the artist
Revenues from French sources paid to persons who are not fiscal residents of France are subject to income tax in France.
Visual artists (painters, sculptors, etc.) are not concerned by provisions relating to artistic performances ; those provisions concern entertainment artists. In terms of income tax, visual artists come under the provisions pertaining to liberal professions.
Revenues coming from the exercise in France of independent professions are thus considered to be from French sources : this is the case for sums received as compensation for activities performed in France even if the artist is not professionally based in France.
Nb > Judges have thus ruled that a painter of foreign nationality, a resident of a foreign country but with a home in France who had instructed a French art gallery to sell some of his works in exchange for a commission, received from these sales revenue from a French source making him liable for French income tax even though his works had been conceived and made in a foreign country.
The sale of a work or the receiving of royalties for occasional events like temporary exhibitions in France does not in principle correspond to this type of case because the activity cannot be considered to have been practiced in France. Nevertheless, these sums must be considered in all cases as revenues from French sources when they are paid by organizations based in France.
Indeed, sums received as royalties are considered to be revenues from French sources when the payer (the organization paying compensation) is based in France.
Nb > The general tax code (article 92-2) only specifies royalties received by writers and composers in the non-commercial category but legal precedents have considered that this list is not limitative and that a sculptor is also concerned.
Thus, royalties paid by French organizations must be declared in France by the artist.
For persons who are not residents of France, the tax declaration must be filed at the tax center for non-residents (see Useful links in French) by the following dates :
- April 30 for Europe and countries on the Mediterranean coast ;
- May 15 for North America and Africa (except countries on the Mediterranean coast) ;
- May 31 for Central and South America ;
- June 30 for all other nations.
Tax to be withheld by the french organization
As noted above, visual artists (painters, sculptors, etc.) are not concerned by provisions relating to artistic performances : those provisions concern entertainment artists (see the file Taxes withheld from artistic performances).
As is the case for authors (photographers, writers, etc.), visual artists come under the provisions relating to liberal professions.
Compensation paid to these artists must be subject to withheld tax, but in this case it is the withheld tax which is applicable to certain non-salary revenues or similar revenues such as royalties.
This withholding must be carried out by the organization based in France when compensation is paid to creative artists who are not fiscal residents of France.
The withholding rate is 33.33 % and applies to the gross total of pre-tax amounts paid on sales.
The French structure must pay this withheld tax to its tax center no later than the 15th of the month following payment of the compensation. Payment must be accompanied by Cerfa declaration #2494 in duplicate.
Nb > When it is practiced, this withheld tax paid by the French organization is deducted from the income tax owed by the artist on his or her revenues from French sources (see above Revenues subject to income tax in France, declaration to be filed by the artist ).
Last Updated ( Tuesday, 12 December 2006 )
