mgr works with international touring artists of all shapes, sizes and genres to help steer their tours through the minefield of withholding tax, social security and related issues encountered in Europe and beyond.
Entertainers, including groups and solo artists, actors, comedians, models, personalities and presenters – along with athletes – are singled out for special treatment in most of the tax treaties currently in force between major nations. When they perform in another country, that country has the right to tax them on their gross income from that performance, even though they are not resident there.
Withholding tax, or artist tax, can play havoc with tour cashflow and may not always be recoverable against the artist’s tax liability at home.
Each year we file hundreds of FEU applications for artists playing in the UK so that the withheld tax is based on their net UK profit, not their gross earnings.
Elsewhere, each country has its own tax system and approach to artist tax so we liaise with promoters to verify the local tax position and confirm what can be done to mitigate it. We work closely with agents to ensure that the contracts reflect the correct basis and rate of tax, and with business managers to collate the information and documentation required.
The specialist Touring sector services we typically provide include:
Mitigation of artist taxes in Europe, South America, South Africa, South East Asia and elsewhere
Filing FEU applications to agree artist tax on UK performance income
Obtaining social security forms for artist, band and crew (US TAJA1, Europe A1, Canada CPT)
Business management support – UK bank accounts, vendor payment, invoicing for income
Assistance with filing tax returns, where required