As stated in a previous article on taxation, the OECD income tax treaty model’s commentary was reviewed this year and has directly impacted article 17 that regulates withholding income tax for artists and sportsmen.
This commentary is a text that explains to Member States the different options and stakes of articles included in the Tax Treaty OECD Model. It is a key annex and it now includes several possibilities for artists to cease and lobby at national levels in order to fight the too common double income taxation. Indeed, this model is not directly inforced: it is then discuted on a bilateral basis between Member States.
The principle of de facto double taxation was explained in the former post and won’t be detailed here. The news is about the 6 possible exceptions to article 17 that Member States are now free to use, as it has been included in the OECD Commentary. Among those possible exceptions, you find the threshold of 15 000 per year (see former article) and a possible exemption for teams, troupes and orchestras. We will work together with other Pearle members and national organizations to enforce such useful exceptions to article 17 to allow artists to be taxed mainly in their country of residence. The OECD has put up a summary of discussions on this matter and the tax lawyer Dick Molenaar’s presentation is available to our members on their member area.
We will keep our members updated on our progress.