Taxation of Artistes and Sportsmen in International Tax Law

S. 421Withholding Taxes for Non-resident Artistes and Sportsmen in the light of Non-discrimination Clauses

Juraj Valis

S. 423I. Introduction

1.1 General description

Withholding taxation is a widely used method for taxing non-residents. Many countries impose withholding taxes on performance fees of artists and sportsmen. This tax is not only imposed on employees, but especially on self-employed artists and sportsmen, at least if they do not have a permanent establishment in the country of performance.

This practice is in accordance with international tax treaties, pursuant to which the taxation of artists and sportsmen is allocated to the country of performance. However, in today’s global world it is questionable whether taxation of non-resident artists and sportsmen in the country of performance is the most effective and justifiable method, especially in the light of the non-discrimination clauses in EC law.

In this article various aspects of the withholding taxation of non-residents are analyzed with specific emphasis on the non-discrimination clauses of EC law. I will analyze, whether withholding taxation causes discrimination or other breaches of ...