Professional Documents
Culture Documents
2
Taxation of Entertainers and Sportspersons Performing Abroad - Mario Tenore
4
Taxation of Entertainers and Sportspersons Performing Abroad - Mario Tenore
5
Taxation of Entertainers and Sportspersons Performing Abroad - Mario Tenore
2014 Report
Issues related to Article 17 of the OECD MC
Scope of the changes:
[] Commentary included some confusing references to
payment that are directly or indirectly related to the
activities of an entertainer or sportsperson and decided to
use a more consistent terminology
6
Taxation of Entertainers and Sportspersons Performing Abroad - Mario Tenore
2014 Amendments
Changes to 9 OECD Commentary to Art. 17
OECD Commentary, 9, 6th p.: Article 17 OECD MC
[] Article 17 will apply to advertising or sponsorship
income, etc. which has a close connection with a
performance in a given State []
Switzerland ( 15.2 OECD Commentary)
7
Taxation of Entertainers and Sportspersons Performing Abroad - Mario Tenore
2014 Amendments
Changes to 9 OECD Commentary to Art. 17
OECD Commentary, 9, 3rd p: general rule
Such a close connection will generally be found to exist where it
cannot be reasonably be considered that the income would
have been derived in the absence of the performance of
these activities
9
Taxation of Entertainers and Sportspersons Performing Abroad - Mario Tenore
Art. 17 OECD MC
2014 amendments: Close connection
Golf or tennis player
Wearing the sponsors clothing and using
the sponsors equipment in a tournament
Promotional appearances on behalf of
the sponsor during tournament or even
immediately before or after its
conclusion
Art. 17 OECD
Art. 17 OECD
Art. 17 OECD
10
2014 Amendments
Changes to 9 OECD Commentary to Art. 17
OECD Commentary, 9, 6th p.: unspecified events
Such a close connection may be evident from contractual
arrangements which relate to a participation in a named
events or a number of unspecified events; in the latter case,
a Contracting State in which one or more of these events
take place may tax a proportion of the relevant
advertising or sponsorhip income (as it would do, for
example, in the case of remuneration covering a number of
unspecified performances)
11
Taxation of Entertainers and Sportspersons Performing Abroad - Mario Tenore
Art. 17 OECD MC
Treaty qualification
Art. 12 OECD MC
Art. 7/15 OECD MC
12
Taxation of Entertainers and Sportspersons Performing Abroad - Mario Tenore
2014 Amendments
new 9.5 OECD Commentary to Art. 17
OECD Commentary, 9.5, 1st p. Art. 17 OECD MC
when [] uses of the entertainers or sportsmans image rights
are not connected to the entertainers or sportsmans
performance in a given State, the relevant payments would
generally not be covered by Article 17 (see paragraph 9
above)
13
Taxation of Entertainers and Sportspersons Performing Abroad - Mario Tenore
14
Taxation of Entertainers and Sportspersons Performing Abroad - Mario Tenore
2014 Amendments
new 9.5 OECD Commentary to Art. 17
2014 change to OECD Commentary: No solution
15
Taxation of Entertainers and Sportspersons Performing Abroad - Mario Tenore
16
Taxation of Entertainers and Sportspersons Performing Abroad - Mario Tenore