TLDR: Performing artists, authors of intellectual works, and athletes residing in France can opt for a 15% withholding tax on their gross income, which is creditable against income tax. Visual artists are excluded from this regime and fall under the liberal professions category. Olympic bonuses can be spread over four years, and organizers of international sporting events benefit from specific exemptions. Some artists and authors are exempt from the CFE.
15% withholding tax for artists and athletes
Performing artists, authors of intellectual works (excluding architects and software authors), and performers of such works can opt for a 15% withholding tax on their gross income. This withholding is creditable against the income tax due for the year of its application. Athletes are also eligible for this option.
Special regime for performing artists under contract
Performing artists holding an employment contract under Articles L. 7121-3 to L. 7121-7 of the Labor Code can benefit from the provisions of Article 100 bis of the CGI for determining their taxable salaries. This regime also applies to athletes for income earned from practicing a sport.
Three-year average for artistic and sports income
Income from literary, scientific, artistic production, or the practice of a sport can, upon request, be calculated by deducting the average expenses of the past three years from the average revenue of the same period. This option is reserved for taxpayers subject to the controlled declaration regime.
Spreading of Olympic and Paralympic bonuses
Bonuses paid by the State to medal-winning athletes at the Olympic and Paralympic Games (as well as their guides or coaches) can be divided into equal parts over four years upon the beneficiary’s express and irrevocable request. This option is incompatible with the spreading provided for in Article 163-0 A of the CGI.
Exemptions for organizers of international sporting events
Organizations responsible for hosting international sporting competitions in France are exempt from corporate tax and income tax on profits directly related to the event’s organization. This exemption also extends to certain withholding taxes and payroll taxes.
CFE exemption for certain artists and authors
Painters, sculptors, engravers, and draftsmen considered as artists and authors of graphic and plastic works, as well as authors of literary, dramatic, musical, and choreographic works (excluding software authors), are exempt from the business property tax (CFE).
Exclusions: visual artists
Visual artists (painters, sculptors, etc.) whose works are intended for sale do not benefit from the special regime for artists and athletes. Their income falls under the provisions for liberal professions.