Esports and tax: how the OECD Model Tax Convention applies to players’ income

Esports Team
Published: Monday, 07 September 2020. Written by Dr Mario Tenore No Comments

Esports are turning from a social phenomenon into a real industry, raising in parallel complex legal and tax issues. As far as taxation is concerned, there are significant questions as to whether the current international tax rules are fit to address the phenomenon or whether changes are required.

This article examines the relevant international income tax issues relating to esports from the perspective of gamers, focusing in particular on income that is closely connected to performance such as the prize money[1].  It then draws some conclusions on the adequacy of the existing rules (namely Article 17 of the OECD Model Tax Convention – ‘OECD MTC’) to address the specific tax issues of esports players.  Specifically, it examines:

  • The difference between playing online and offline
  • Types of income
  • Application of Article 17 OECD MTC
  • Why esports players fall under Article 17
  • Main features of Article 17
  • The place of performance in the context of esports

Continue reading this article...

Register with your email and password
Already a member? Sign in

Get access to all of the expert analysis and commentary at LawInSport including articles, webinars, conference videos and podcast transcripts.  Find out more here.

Related Articles

About the Author

Dr Mario Tenore

Dr Mario Tenore

Dr. Mario Tenore practices at Maisto e Associati (Milan office) and is member of the International Tax Entertainment Group (“ITEG”).

  • This email address is being protected from spambots. You need JavaScript enabled to view it.

Leave a comment

Please login to leave a comment.

Copyright © LawInSport Limited 2010 - 2020. These pages contain general information only. Nothing in these pages constitutes legal advice. You should consult a suitably qualified lawyer on any specific legal problem or matter. The information provided here was accurate as of the day it was posted; however, the law may have changed since that date. This information is not intended to be, and should not be used as, a substitute for taking legal advice in any specific situation. LawInSport is not responsible for any actions taken or not taken on the basis of this information. Please refer to the full terms and conditions on our website.