Deduction at source on royalties paid to a performing artist domiciled abroad
Monday, 20 June 2005
“What rate of deduction at source should be applied to the royalties we pay to an opera singer domiciled abroad for the use of a recording in France? You state that the rate is 15%; however, another organization tells us that the normal rate applicable to royalties deducted at source is 33.33%, not 15%”
Royalties payable to beneficiaries domiciled abroad, say for the use of industrial patents in France, are indeed subject to a 33.33% deduction at source (this rate applies to non-salaried earnings).
Nb > If there is a tax agreement with the beneficiary’s country of residence, this rate may be lower; such agreements may even include an exemption.
On the other hand, for artistic or sports services, the rate of deduction at source is 15%, regardless of whether this is salary or non-salary earnings.
The basic documentation of the tax authority (5 b 7111) specifies the sums that correspond to artistic services supplied or used in France.
These are sums in payment of the services of entertainment artists, more particularly film and theatre actors, opera singers, dancers, singer-songwriters, etc.
The pay can concern:
- either a service provided in France during artistic events (concerts, etc.), as part of a broadcast or recorded work;
- or simply use thereof in France, even if the service is not actually performed, for instance when a performer transfers or licenses the recording rights for his work in France.
See also: Deduction at source on artistic services
