Italian Tax Law and the Ambiguous Status of Artists

Italian tax law lacks a specific definition for artists, unlike international norms. Indirect reference is made to Article 53, paragraph 1 of the TUIR, which includes income from the habitual exercise of arts and professions under self-employment income. However, according to double taxation conventions based on the OECD model, the taxation of artists (and athletes) is regulated independently under Article 17, regardless of how the activity is performed. The OECD terminology uses "entertainers," covering theater or film actors, TV presenters, singers, band members, etc. In Italy, income can be classified as employment income (if subordinate), assimilated to employment income (if non-habitual and non-professional), or self-employment income (if habitual and professional). Article 17 of the OECD model provides for taxation in the source state, aiming to facilitate income disclosure, and applies to entertainment companies as well. Many artists performing in Italy are foreign non-residents, requiring assessment of whether fees are taxable in Italy. Various scenarios arise based on income source and performance location, with hybrid situations when the same person performs multiple activities in the same state or receives remuneration for performances in different states. Practical problems are left to jurisprudence with its discretion.