In the context of the work achieved by FEVIS members and their partners on withholding taxes while performing abroad, the participants to the October 3rd 2013 expert meeting in London have shared their experiences and learned from Dick Moleenar, tax expert from the Netherlands. Following this meeting, FEVIS sent its formal recommendations to European and French officials. This advocacy work came in addition to the work that has been achieved for several years by other European organizations such as Pearle and its members.
Among other public officials, FEVIS met several times with the French tax administration and the Tax Legislation Service in particular. At this occasion, the following elements were communicated to our FEVIS Chairman and their communication was allowed.
The soon to be published 2014 Commentary on the OECD model for Double Tax Treaties should include a proposed addition to article 17. It opens the possibility for the concerned states to add a 17 000 euro threshold to the yearly individual income received by a non residing artist, below which withheld income tax in the country of activity shall not apply. Below 17 000 euros per year in a given country that has added this threshold to the concerned tax treaty, an artist will, in most cases, only see his/her income taxed in his/her country of fiscal residence rather than where the activity is carried out.
The French Direction de la Législation Fiscale (French Tax Legislation Service) has supported the following admendment to the New Commentary written by the OECD.
What is more, the French DLF has already added this notion of threshold in the ongoing discussions with foreign partners that aim at revising bilateral tax treaties, including European countries. It should be noted that the negociation of these texts, their approval and their application will require about 2 years. The French DLF will continue to include this proposed amendment in the negociations to come with other foreign partners.
The DLF encourages adminsitrative staff dealing with artists’ mobility to make detailed contracts and invoices available to foreign tax administrations, listing the amounts received by each hired artist, or even to isolate on one single invoice the amounts related specifically to income received by artists, which will be the basis for withholding income tax calculation, and make a different invoce for other kinds of expenses.
The French DLF encourages FEVIS and other ators of the field to keep communicating directly with their services, sending summarized descriptions per country when incorrect applications are noticed. Such information would allow the French DLF to inquire their foreign partners.
FEVIS encourages national members and counterparts to communicate on the New Commentary when released, in order for national tax adminsitration to also apply the option opened by the OECD. FEVIS also asks its members to keep sending concrete examples in order to continue this fruitful cooperation with tax services.
Text approved by the French DLF.