Policy areas /overview / detail
Jun 29, 2010
The performing arts sector is dynamic and internationally focused. It is characterised by a high mobility of workers, yet the application of tax legislation across the EU is obstructing this mobility.
The main problem is the double taxation of artists. When artists perform abroad they have to pay income tax in the country of performance, as well as in their residence country. Usually, when this double taxation occurs, bilateral tax treaties provide for ways to eliminate double taxation. But, for performing artists and sportsmen, there is an exceptional rule in the form of article 17.
In its response to the Commission’s consultation on Double tax conventions, Pearle* discusses a list of problems related to double taxation, illustrated by concrete cases.
Pearle* believes it is necessary to better coordinate national tax systems and to remove discrimination and double taxation as it prevents a good functioning of the internal market in Europe. Therefore, Pearle* very much welcomes the initiative from the European Commission to tackle the subject of double taxation as an obstacle to deploy cross-border activities.