Taxes withheld from artistic performances

 

In which cases is this tax not owed ?

Exemptions may be stipulated in international agreements concerning double taxation depending on whether the promoter based in France does business with :

• artists or their representatives (agents) ;
• intermediaries.

Certain fiscal agreements contain special clauses for artists (see the list of international tax agreements which contain special clauses pertaining to artists ).

In some particular cases, these special clauses give the country of residence the right to tax the artist ; in this case, withheld tax is not due in France.

For example, withheld tax is not owed if the artist’s activity is financed principally or for a large part by public funds emanating from the country of residence, a public organization or a public-sector legal entity in that country.

This case is stipulated by tax agreements with the following countries : South Africa, Algeria, Argentina, Armenia, Austria, Bangladesh, Bolivia, Bulgaria, Cyprus, Congo, South Korea, Ivory Coast, Egypt, Equator, Spain, Estonia, U.S.A, Ghana, Hungary, India, Indonesia, Iceland, Israel, Italy, Japan, Jordan, Lithuania, Madagascar, Malaysia, Mauritius, Morocco , Mexico, Norway, New Zealand, Pakistan, Philippines, Singapore, Sweden, Thailand, Trinidad and Tobago, Turkey, Venezuela, Vietnam, Zimbabwe.

Other tax agreements stipulate that withheld tax is not owed if the activities are exercised as part of an official cultural exchange program.

This case is stipulated notably by tax agreements signed with China, Poland and Trinidad and Tobago.

In the case of the United States of America, withheld tax must be paid by the French employer ; however, the artist can obtain reimbursement if the gross annual total of payment received, including reimbursements for expenses, does not exceed $ 10,000.

Nevertheless, the majority of international agreements containing specific clauses pertaining to artists give the country where the performance is executed the right to tax revenues : withholding of tax is therefore applicable.

Contracts concluded with intermediaries

Tax agreements containing special clauses for artists

See the list of international tax agreements which contain special clauses pertaining to artists.

Certain international agreements contain specific clauses pertaining to artists.
In this case, the relevant provisions in applicable agreements must be consulted.

For example, agreements signed with Malta, Estonia, Lithuania and Armenia stipulate an exemption from payment of withheld tax when the artist’s activity is financed principally or for a large part by public funds coming from the country of residence, a public organization or a public-sector legal entity in that country. The agreement signed with Tunisia stipulates an exemption from the payment of withheld tax in France when the contracting partner based in Tunisia is a non-profit organization.

Tax agreements which do not contain special clauses for artists

See the list of international tax agreements which do not contain special clauses pertaining to artists.

When the international agreement contains no special clauses pertaining to artists, it is necessary to determine whether the artist is employed by an intermediate legal entity or not.

When the artist practices a profession under the aegis of a legal entity which is not the artist’s employer, withheld tax is not owed in France for the following :
 sums paid by the French organizer to the legal entity ;
 compensation paid by the legal entity to the artist.

When the artist practices a profession under the aegis of a legal entity which is the artist’s employer, withheld tax is not owed for sums paid by the organizer to the legal entity.
Withheld tax is not owed for salaries paid by the legal entity to the artist if the following three conditions are met :

Examples pertaining to provisions stipulated by the various tax agreements are given here for illustrative purposes. These provisions are subject to change : details on provisions of current tax agreements may be obtained from the CNIR (French tax center for non-residents) or by consulting the agreements themselves (see Useful Links in French).

Last Updated ( Tuesday, 02 June 2009 )