Taxation of non-resident artists and sportspeople

Sums paid to a non-resident artist or sportsperson in consideration for a service rendered or used in France are subject to the 15% withholding tax provided for by article 182 A bis of the Tax Code. This withholding applies to the gross fee, regardless of the place of payment and even where the remuneration passes through an interposed company. The bilateral tax treaty between France and the artist's State of residence then determines any elimination of double taxation.

Article 17 of the OECD model allows the State of performance to tax the income of artists and sportspeople, by derogation from the rules applicable to businesses (art. 7) or to independent professions. In practice, France retains the right to tax the fees and bonuses linked to a French performance, and bilateral treaties merely organise the elimination of double taxation in the State of residence (by tax credit or exemption). The 182 A bis withholding is the technical instrument of that taxation.

An artists' company (loan-out, image rights company, personal production company) is a structure interposed between the artist and the payer. Article 155 A of the Tax Code allows the French authorities to tax in France the sums paid to that company where (i) it is established outside France in a favourable regime, (ii) the person who renders the services in France controls the company or effectively benefits from the remuneration. Securing the arrangement requires genuine economic substance, fair remuneration of the artist and a clear contractual allocation between service, image and neighbouring rights.

Image rights may be characterised as royalties (article 12 of the OECD model) or as service income depending on their contractual structure. When paid to a non-resident, they may be subject to the withholding tax of article 182 B of the Tax Code (rate varying with the nature of the income). The bilateral tax treaty may cap this rate or grant exclusive taxation to the State of residence. Structuring through a dedicated company requires guarding against the risk of article 155 A of the Tax Code.

A sportsperson who transfers their tax domicile out of France may be subject to the exit tax (Tax Code art. 167 bis) on their unrealised gains in the case of significant shareholdings (≥ 50% of a company or a value ≥ €800,000). An automatic payment deferral applies to transfers to the EU/EEA. The tax is relieved on expiry of a 2- or 5-year period if the securities are retained. See our exit tax guide.

The inbound-assignment regime (Tax Code art. 155 B) allows, subject to conditions, an exemption of a significant part of the remuneration of the sportsperson (inbound-assignment bonus and the part of the remuneration relating to activity carried out abroad) for a period of up to 8 years. The regime is open to sportspeople who have not been French tax residents during the 5 years preceding their taking up duties. A partial exemption also applies to certain foreign passive income and to half of foreign capital gains.

Yes. The 182 A bis withholding tax is payable by the French debtor who pays the fees — whether a producer, a tour operator, a federation or an event organiser. The debtor must calculate the withholding, pay it to the non-residents' tax office and report it (form 2494 bis). Failing this, it is exposed to a reassessment with interest and penalties. Particular vigilance is required for international tours, festivals and major sporting events.

Yes — particularly where the organisation involves a prolonged presence on French territory (premises, staff, equipment, ticketing, ancillary commercial operations). The characterisation of a permanent establishment within the meaning of article 5 of the OECD model entails taxation in France of the profits attributable to that establishment, in addition to the withholding taxes applicable to artists and sportspeople. See our study on the permanent establishment for VAT, and the coordination with direct taxation.