Free article section

You are reading a Free article. Apply for a subscription to access all the valuable information on the website Sports Law & Taxation

Netherlands asks Austria to replace exemption method by credit method to relief athletes and artists from international double taxation

The Netherlands Government has asked the Netherlands States General for tacit approval of the Protocol of 8 October, 2008 to the 1989 tax treaty that has been concluded between the Netherlands and Austria. As a result of the Protocol, the Convention will be amended concerning one issue: in Austria will follow the credit method instead of the exemption method for the prevention of international double taxation on the income from Netherlands activities of Austrian resident artists and sportsmen. The amendment is proposed at the initiative of the Netherlands, following its 2007 introduction of the so-called artists and professional sportsmen scheme (ASBR). As a result, the Netherlands levies from January 1, 2007 no longer income tax on income received for activities in the Netherlands by non-resident professional artists and foreign companies. The adjusted ABSR includes the condition that the artist, sportsman or the company must be a resident of a country with which the Netherlands has concluded a tax treaty (or be a resident of the Netherlands Antilles or Aruba). In situations where a treaty to prevent international double taxation applies, the athletes and artists article applies to income received by artists, sportsmen and foreign companies. This article allocates the taxing rights for artistic and sports activities to the country where the activities are carried out (work). Under the new ABSR the Netherlands thus no longer imposes tax in these situations. If the country of residence of the artist or sportsmen avoids international double taxation for its residents through the exemption method, then the result will be that no income tax is levied on such compensation. During the Netherlands parliamentary discussion of the ABSR it was indicated that t Netherlands authorities would contact those countries whose resident are entitled to the exemption method in order to try to prevent this double exemption of Netherlands source income. These countries are Belgium, Bosnia-Herzegovina, Bulgaria, Germany, Estonia, Hungary, Luxembourg, Morocco, Montenegro, Austria, Serbia, Spain, Slovakia, Thailand, Turkey, Venezuela and the Netherlands Antilles and Aruba (Arrangements of the Kingdom of the Netherlands). Source: Dr Dick Molenaar, Netherlands disadvantage its own artists and athletes, NTFR Issue 52, December 24, 2008, 2008/2473. The Netherlands has subsequently contacted inter alia Austria to prevent double taxation on this income by no longer applying the exemption method, but instead the credit method. This means that this income will in full be taxed by the country residence - in this case Austria. Previously a similar protocol to amend the method for preventing athletes and artists with Estonia (Trb. 2008, 145). If Austria and the Netherlands would ratify the Protocol during 2009 the change will be effective from January 1, 2010.
The Journal

Global Sports Law and Taxation Reports feature: articles; comparative surveys; commentaries on topical sports legal and tax issues and documentation.

The unique feature of Global Sports Law and Taxation Reports is that this Journal combines for the first time up to-date valuable and must-have information on the legal and tax aspects of sport and their interrelationships.

TheĀ Editors

The editors of  the Journal Sports Law & Taxation are Professor Ian Blackshaw and Dr Rijkele Betten, with specialist contributions from the world's leading practitioners and academics in the sports law and taxation fields.

The Editors

Managing editor
Dr. Rijkele Betten

Consulting editor
Prof. Dr. Ian S. Blackshaw

Editorial board

Prof. Guglielmo Maisto
Maisto e Associati, Milano

Dr. Dick Molenaar
All Arts Tax Advisors, Rotterdam


Mr. Kevin Offer
Hardwick & Morris LLP, London

Mr. Mario Tenore
Maisto e Associati, Milano


Nolot BV
St. Jorisstraat 11
5211 HA  's-Hertogenosch
This email address is being protected from spambots. You need JavaScript enabled to view it.