Taxation of Artistes and Sportsmen in International Tax Law

S. 159Treatment of Advertising Income of Artistes and Sportsmen according to the OECD Model

Günther Zadek

S. 161I. Introduction

Prominent artistes and sportsmen derive a considerable part of their income from advertising contracts in the widest sense. The question arises as to whether such income falls under Art. 17. Art. 17 applies to advertising and sponsorship income, etc. which is related directly or indirectly to performances or appearances in a given state. The OECD Commentary does not state explicitly which relation, direct or indirect, is sufficient for the income to fall under Art. 17. What can be regarded as a direct or indirect relation, and which articles are applicable if there is no sufficient direct or indirect relation? Regarding this topic the following advertising income will be considered in detail:

• Income from contracts supplying the sportsmen with necessary equipment and

• Income from participation in commercials.

II. Is the source of payments relevant?

It must be taken into account that Art. 17 applies for income derived by an artiste or a sportsman from his activities in the source state, regardless of whether ...