An Analysis of the Taxation of Entertainers and Sportspersons Under Art. 17 OECD-MC

Abstract

The double tax treaties (DTT) are an important regulator in international tax law. The Preamble to them defines their aim and purpose – to reduce taxation through tax evasion and avoidance in the field of taxes on income and capital. It should be noted that they do not create new taxes, but they are supranational international agreements ensuring the fair tax treatment between states. According to the Art. 5, para 4 of the Constitution of the Republic of Bulgaria, the international agreements such as the DTTs are part of the domestic law if they have been ratified, promulgated and entered into force. After the fulfilment of the three cumulative conditions, they take precedence over the domestic legislation for any conflicts. The aim of the current study, with no claim to completeness and comprehensiveness, is to outline the scope of Art. 17 of the Model Tax Convention of Income and Capital of the Organisation for Economic Co-operation and Development (OECD-MC) on the taxation of entertainers and sportspersons. The analysis will begin with a brief historical review. For this purpose, the last three versions of the Commentary of the OECD-MC (the Commentary) will be examined. The author will also focus on relevant international and domestic practical issues on the topic as well as a brief overview of the concluded DTTs between Bulgaria and other states. Finally, some thoughts will be expressed on the future development of the concept.