Taxation of right to self-image of sportsmen

Identifier:  TFG:561

Handle: https://hdl.handle.net/20.500.11797/TFG561

Authors:  Villarín Martínez, Enric

Abstract:
When we talk about trading sportsmen image rights with other person we have to understand we are trading the right of exploit economically the image of the right holder and not the image in strict sense. Resident sportsmen in Spain could obtain image rights benefits both nationally and internationally. Athletes should all their benefits tax in IRPF because this tax includes their worldwide income, that is to say, all the benefits made in every country. According to their nature, image rights benefits are classified by IRPF in many ways: ˗ If they are included in the wage paid by a sports club to sportsmen they will tax as earned income. ˗ If they proceed from the economically exploit of the image made for someone different than the sportsmen benefits will tax as investment income. ˗ If they proceed from the economically exploit of the image made by the sportsmen himself benefits will tax as economic activities income. When athletes earn benefits in other countries it exist a double taxation situation both in that country and Spain. The OECD Model Tax Convention sorts out that situation distributing the taxation of image rights benefits between countries according to some requirements. -If they provide directly or indirectly from sport they could tax in the country where sportsmen work, Spain in our case, taxing in IRPF as earned income. -If benefits provide from image traded as a brand they could tax in the country where sportsmen resides, Spain in our case, taxing in IRPF as investment income. - If benefits provide from image traded as a merchandising, sponsoring or commercial they could tax in the country where sportsmen resides if there are obtained by sportsmen, Spain in our case, taxing in IRPF as economic activities income. If they were obtained by a corporation they will tax where they were obtained.