Article 17: Artistes and Sportspersons/Entertainers and Sportspersons
United Nations Model Double Taxation Convention between Developed and Developing Countries (2017 Update)
Article 17
Artistes and Sportspersons
Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.
Where income in respect of personal activities exercised by an entertainer or a sportsperson in his capacity as such accrues not to the entertainer or sportsperson himself but to another person, that income may, notwithstanding the provisions of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised.
OECD Model Tax Convention on Income and on Capital (2017 Update)
Article 17
Entertainers and Sportspersons
Notwithstanding the provision of Article 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from that resident’s personal activities as such exercised in the other Contracting State, may be taxed in that other State.
Where income in respect of personal activities exercised by an entertainer or a sportsperson acting as such accrues not to the entertainer or sportsperson but to another person, that income may, notwithstanding the provision of Article 15, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised.
Article 17 Bibliography
Appleby, Andrew D. “Leveling the Playing Field: A Separate Tax Regime for International Athletes” (2011) 36:2 Brook J Intl Law 605 https://perma.cc/KE43-9S7R
Arnold, Brian J, ‘Article 16 and Article 17 – Directors Fees and Artistes and Sportsmen’ in: Thomas Ecker and Gernot Ressler (eds), History of Tax Treaties: The Relevance of the OECD Documents for the Interpretation of Tax Treaties (Linde 2011) <http://link.library.ibfd.org/portal/History-of-tax-treaties--the-relevance-of-the/JJaZrbO3iSQ/>
Baker, Philip. “United Kingdom: Michael Macklin vs. HMRC” in Michael Lang et al, eds, Tax Treaty Case Law Around the Globe 2015 (Vienna: Linde, 2016) 283 <https://www.ibfd.org/IBFD-Products/Tax-Treaty-Case-Law-around-Globe-2015>
Berry, Carole C. “Taxation of US Athletes Playing in Foreign Countries” (2002) 13:1 Marq Sports L Rev, online: https://perma.cc/6XGT-A8R6
Bazo, Andres E. “A Proposal for the Taxation of Athletes” (2009) 56:1 Tax Notes Intl https://perma.cc/5XXP-RZNT
Calianno, Joseph & Kagney Petersen.“Proposed Regulations Establish a New ‘Event Basis’ Rule for Determining Source of Compensation for Labor or Personal Services” (2008) 19:3 J Intl Tax 38.
Coneys, Jr, John J & Jonathan R Beck. “Taxing the Stars: US Taxation of non-US Entertainers and Athletes” (2006) 7:3 Intl Tax Rev 19 <https://heinonline.org/HOL/P?h=hein.journals/intaxr7&i=121>
Dagan, Tsilly & Yariv Brauner. “Israel: Relationship between the Employment Article and the Sportsmen Article” in Eric CCM Kemmeren et al, eds, Tax Treaty Case Law Around the Globe 2014 (Amsterdam: International Bureau of Fiscal Documentation, 2014) 253 https://perma.cc/U4KR-5ZV7
Daniel Sandler, "Artistes and Sportsmen (Article 17 OECD Model Convention)" in Michael Lang et al, eds, Source versus Residence Problems Arising from the Allocation of Taxing Rights in Tax Treaty Law and Possible Alternatives (Kluwer Law International, 2008) 215 https://perma.cc/RL38-9K9N
Debra Dobray and Tim Kreatschman, “Taxation Issues Facing the Foreign Athlete or Entertainer” (1988) 9 NYL Sch J Int’l & Comp L 265 <https://perma.cc/D7FW-B64U>
Dick Molenaar, "Discussion of Daniel Sandler’s Paper on Article 17 OECD Model Convention" in Michael Lang et al, eds, Source versus Residence Problems Arising from the Allocation of Taxing Rights in Tax Treaty Law and Possible Alternatives (Kluwer Law International, 2008) 247 https://perma.cc/RL38-9K9N
Dick Molenaar, “Minimum Threshold for Entertainers and Sportspersons in Article 17 of the OECD Model” (2016) Bull Intl Tax’n 225 <https://perma.cc/8BBA-W4TR>
Dick Molenaar, “New Options to Restrict Article 17 for Artistes and Sportsmen” (2016) 44:12 Intertax 972 <https://perma.cc/CBA2-GQCH>
Dick Molenaar & Harald Grams, "The Critical Need for Reform of Article 17 (Artistes and Sportsmen) of the OECD Model Tax Treaty" (2011) 40:2 Tax Management International Journal 95 https://perma.cc/6W6P-PRTB
Dunlop, Jeff. “Taxing the International Athlete: Working Toward Free Trade in the Americas Through a Multilateral Tax Treaty” (2006) 27:1 Nw J Intl L & Bus 226, online: <https://perma.cc/PL6F-65J9>
Feng, Lizeng. "Does the OECD Artistes and Athletes Article Cover Speeches?" (2003) Tax Notes Intl 1345.
Jiménez, Adolfo Martín. “Spain: Taxation of Artistes and Sportsmen: U2’s Tour in 1997” in Michael Lang et al, eds, Tax Treaty Case Law Around the Globe 2011 (Alphen on the Rhine: Kluwer Law International, 2012) 355 <https://perma.cc/5HW6-YZ83>
John J Jr Coneys, "To Tax or Not to Tax: Is a Non-Resident Tennis Player's Endorsement Income Subject to Taxation in the United States" (1999) 9:3 Fordham IP Media & Ent LJ 885, online: https://perma.cc/Y98Q-TLXJ
Kemmeren, Eric CCM. “The Netherlands: Is a Football Player’s Transfer Fee Income Derived as a Sportsman?” in Michael Lang et al, eds, Tax Treaty Case Law Around the Globe 2011 (Alphen on the Rhine: Kluwer Law International, 2012) 331 https://perma.cc/5HW6-YZ8>
Macnaughton, Alan & Kim Wood. “Should Provinces Tax Non-Resident Athletes?” (2004) 52:2 Can Tax J 428, online: <https://perma.cc/T44L-ZJMJ>
Mark Jadd, Norman Bacal, and Kay Leung, " Performing in Canada: Taxation of Non-Resident Artists, Athletes, and Other Service Providers" (2008) 56:3 Can Tax Journal 589-638 https://perma.cc/P5RJ-6ZSK
Matthew Akers, "A Race to the Bottom: International Income Tax Regimes' Impact on the Movement of Athletic Talent" (2015) 17 U. Denv. Sports & Ent. L.J. 11 https://perma.cc/N82G-3B25
Molenaar, Dick. "Available Options to Change Article 17 (Artistes and Sportsmen) (2011) 4:71 International Taxation Journal 61 https://perma.cc/H9VT-8CUV
Molenaar, Dick. “How to Modernize Income Taxation of International Artistes and Sportsmen” (2004) 33 Tax Mgmt Intl J 238.
Molenaar, Dick & Harald Grams. “Article 17(3) for Artistes and Sportsmen: Much More than an Exception” (2012) 40:4 Intertax 270, online: <https://perma.cc/3GWS-BHFM>
Nick Overbay, A Uniform Application of the Jock Tax: The Need for Congressional Action, 27 Marq. Sports L. Rev. 217 (2016) https://perma.cc/79RK-QW8C
Nitikman, Joel. “Article 17 of OECD Model Income Tax Treaty: An Anachronism?” (2001) 22 Tax Notes Intl 2637 <https://perma.cc/E9L5-JYPC>;
Nitikman, Joel, "Article 17: An Argument for Repeal" (2001) 12:6 Intl Tax Rev 45 online https://perma.cc/6SAJ-E89K
Pogroszewski, Alan & Smoker, Kari. “Cross-Checking: An Overview of the International Tax Issues for Professional Hockey Players” (2012) 22:1, Marg Sports L Rev, online: https://perma.cc/V2KE-72CB
Pogroszewski, Alan. "When is a CPA as Important as Your ERA? A Comprehensive Evaluation and Examination of State Tax Issues on Professional Athletes", 19 Marq. Sports L. Rev. 395 (2009) https://perma.cc/MT4Z-3FYY
Ruchelman,Stanley C & Ian Shane. “Tax Concepts Affecting the Foreign Entertainer or Athlete Performing in the United States” (2008) 37:5 Tax Mgmt Intl J 272, online: <https://perma.cc/3K3H-NBKB>
Sasseville, Jacques. “Spain: Taxation of Activities Related to U2 Concerts” in Michael Lang et al, eds, Tax Treaty Case Law Around the Globe 2013 (Vienna: Linde, 2014) 291 <https://www.ibfd.org/IBFD-Products/Tax-Treaty-Case-Law-Around-Globe-2013>
Sengupta, DP. “India: Wizcraft International” in Michael Lang et al, eds, Tax Treaty Case Law Around the Globe 2011 (Alphen on the Rhine: Kluwer Law International, 2012) 347 <https://perma.cc/BKN6-LLSD>
Simpson, Alan. “Taxation of Non-Resident Entertainers and Sportsmen: The United Kingdom’s Definition of Performance Income and How It Ought to be Measured” (2012) 11:3 Wash U Global Stud L Rev 693 <https://openscholarship.wustl.edu/cgi/viewcontent.cgi?article=1416&context=law_globalstudies>
Sprague, Bruce. “Taxation of Professional Athletes: Cross-border Perspectives” (2006) 54:2 Can Tax J 477.
Stephanie C Evans, "US Taxation of International Athletes: A Reexamination of the Artiste and Athlete Article in Tax Treaties" (1995) 29 Geo Washington Journal of International Law & Economics 297 https://heinonline.org/HOL/P?h=hein.journals/gwilr29&i=305
Stephen Taylor, "Are You Not Entertained - Is This Not Why You Are Here - U.S. Taxation of Foreign Athletes and Entertainers", (2009) 16 Jeffrey S. Moorad Sports L.J. 375. https://digitalcommons.law.villanova.edu/cgi/viewcontent.cgi?article=1062&context=mslj
Taylor, Stephen. “Are You Not Entertained? Is This Not Why You Are Here?” (2009) 16:2 Jeffrey S Moorad Sports LJ 375, online: <http://digitalcommons.law.villanova.edu/mslj/vol16/iss2/8/>
Teck, Tan How & Jimmy Oei, “Taxation of Artistes and Sportsmen under Singapore’s Domestic Law and its Tax Treaties” (2009) 63:1 Bull Intl Tax’n 11.
Tetlak, Karolina. “Tax Treatment of Team Performances under Art. 17 of the OECD Model Convention” (2010) World Tax J 262, online: <https://perma.cc/QP6S-8TSN>
Traversa, Edoardo & Gaëtan Zeyen. “Belgium: Allocation of Employment Income from Sportspersons” in Michael Lang et al, eds, Tax Treaty Case Law Around the Globe 2015 (Vienna: Linde, 2016) 275 <https://www.ibfd.org/IBFD-Products/Tax-Treaty-Case-Law-around-Globe-2015>
Winnie, Ralph Jr. "A Separate International Tax Regime for Nonresident Athletes" (2005) Tax Notes International https://perma.cc/M8EC-2STB
Article 17 Cases
Audiencia Nacional [National Court], 28 January 2010 (Spain).
Austin v The Queen, 2004 TCC 6.
Bundesfinanzhof (Federal Fiscal Court), I B 183/94, 17 May 1995, Bundessteuerblatt, 1995, II, 789 (Germany).
Bundesfinanzhof (Federal Fiscal Court), I R 22/02, 19 November 2003, Internationales Steuerrecht, 2004, 379 (Germany).
Cheek v. The Queen, 2002 CanLII 46707 (TCC) https://perma.cc/KE83-G3D4
Cour Administrative d’Appel Douai (Administrative Court of Appeal, Douai), 98DA00385, 6 February 2001, Droit Fiscal, 2002, 6, 111 (France).
Court of Appeals, Ghent, 25 February 2014, No 2012/AR/2737 (Belgium).
Finanzgericht Bayern (Tax Court, Bayern), 8 K 3034/94, 30 June 1995, Internationales Steuerrecht, 1995, 537 (Germany).
Finanzgericht Berlin-Brandenburg (Tax Court, Berlin-Brandenburg), 9 K 9347/97, 10 July 2000, Entscheidungen der Finanzgerichte, 2005, 766 (Germany).
Finanzgericht Niedersachsen (Tax Court, Niedersachsen), 9 K 147/00, 24 November 2004, Entscheidungen der Finanzgerichte, 2005, 766 (Germany).
Finanzgericht Nordrhein-Westfalen (Tax Court, Nordrhein-Westfalen), 2 K 7912/00, 21 February 2002, Enscheidungen der Finanzgerichte, 2002, 1154 (Germany).
Gordon M Sumner, Roxanne Music Inc v Canada, 7 December 1999, [2000] 2 CTC 2359.
Hoge Raad der Nederlanden [Supreme Court of the Netherlands], 7 May 2010, Nos 08/02054, BNB 2010/245 (Netherlands).
Khabibulin v The Queen, [2000] 1 CTC 2061.
Korkein Hollinto-oikeus (Supreme Administrative Court), 2005:31, 6 January 2005 (Finland).
Kramer v. Commissioner of Internal Revenue 80 T.C. 768 (T.C. 1983) (United States) https://perma.cc/XFP7-SRN7
Michael Macklin v HMRC, [2015] UKUT 0039 (TCC), (2015) 17 ITLR 780.
Saturday v. Cleveland Bd. of Rev., 142 Ohio St.3d 528, 2015-Ohio-1625 https://perma.cc/6LVQ-V5DB
Steuerrekurkomission Zurich (Tax Appeal Commission, Zurich), 1997-04-17, 17 April 1997, Steuerentscheid, 1997, A 31.4, 5 (Switzerland).
Sumner et al v The Queen(1999), [2000] 2 CTC 2359 (TCC).
Tel Aviv District Court, 16 December 2012, Amutat Maccabi Rishon Le’tzion v The Assessment Officer, Nos 1051/04, 1061/05 (Israel).
Thomas F Cheek v Her Majesty the Queen, 31 January 2002, [2002] 2 CTC 2115.
Tribunal Supremo [Supreme Court], 7 December 2012, No 8946/2012 (Spain).
Tribunal Supremo (Supreme Court), RJ 2008\4568, 11 June 2008 (Spain).
Wizcraft International Entertainment Pvt Ltd v ADIT(2010) (Income Tax Appellate Tribunal India).