Golf prize taxes: for 16 dollars more
Sacre bleu! The other day we received a client query from a US golfer who’d come to France for a tournament.
She wanted to know where her prize money would be taxed: in France or in the US? I checked the NDTT[1] signed between the 2 countries and it turns out that for sports earnings greater than $10,000, France will apply a 15% withholding tax on the total sum.
She had earned precisely $10,016, and because of those 16 extra dollars, the French tax administration took $1,502.40… 2018 Ryder Cuppers beware!
[1] Non Double Tax Treaty between France and the USA dated 31/08/1994 and updated on 8/12/2004 and 13/01/2009.