Policy areas /overview / detail
Jul 30, 2010
ARTICLE 17 OECD MODEL TAX CONVENTION
The article 17 of the OECD model tax treaty indicates a special regulation for artists, with the purpose to prevent artists from avoiding paying taxes. When artists perform abroad they have to pay income tax in the country of performance as well as in their resident country, even when bilateral tax conventions have been concluded. Countries levy a source tax on income earned by foreigners in their country, thus eliminating the risk of tax evasion. Instead of leading to solutions of taxation problems, article 17 leads to huge administrative burdens and a loss of income for small companies and self-employed artists.
The opinion of Pearle* on the changes and additions made to article 17 is that they seem to increase the complications and difficulties already encountered. In the position paper, a list of specific problems in relation to article 17 is identified by the sector. In its conclusion, Pearle* proposes possible solutions for these problems. The position paper can be found under the link below.