Exemptions, cases envisaged for American artists
Monday, 04 July 2005
“In your fact sheet ‘Deduction at source on artistic services’, you state that when the contract is entered into directly with the artist, the deduction at source must be paid by the French promoter engaging the American artist, who can reclaim it up to a limit of $10,000; whereas the bilateral agreement dated 31 August 1994, art. 17 clearly stipulates that fees of up to $10,000 paid to American artists are not subject to deduction at source”.
Article 17 of the tax agreement dated 31 August 1994 with the United States does indeed state that American artists’ earnings are not taxed in France “if the gross amount earned for such activities by the artist or sportsperson, including expenses that will be refunded or borne on his behalf, does not exceed ten thousand US dollars or the equivalent in French francs for the tax year in question”.
This provision concerns the income tax the artist owes in France. Exemption from French income tax is not based on the amount of each fee but rather on the total gross amount earned for artistic services supplied or used in France.
It does not exempt one from deduction at source. In this respect, the tax authority pointed out in an instruction dated 21 January 1987 that “deductions at source are always deducted from fees paid to artists and sportspersons resident in the United States by debtors based in France. If the total gross amount for the tax year in question (including the deduction at source) does not exceed 10,000 dollars, the interested parties can apply for a refund, directly or through the debtor based in France, from the Tax centre for non-residents.
The request for refund must state:
- The full name and address of the beneficiary of the fees in the United States and their social security number;
- The name and address of the payer;
- The date of the event or service;
- The fee amount;
- The actual or estimated expenses the payer may have advanced.
The request must be filed before 30 April of the calendar year following that in which the earnings were acquired.
See Useful links (Tax centre for non-residents).
