Influencers, e-athletes and international tax exposure: understanding the rules for cross-border digital activities
Digital transformation and increased international mobility have given rise to new professional figures – influencers, e-athletes, sextertainers and edutainers – whose activities often span multiple jurisdictions. In this article, I provide a practical overview of the international tax issues that may arise from such cross-border activities, based on the general principles of business income taxation and the key provisions of tax treaties.
1. New professions, new tax challenges
The rise of the digital economy and the growing trend of location-independent work have brought international tax issues to the forefront for many entrepreneurs and self-employed professionals.
Influencers, e-athletes, adult content creators and educational entertainers often operate in more than one country. This can create uncertainty about where their income should be taxed, especially when they generate income from various platforms and audiences worldwide.
2. General rules on the taxation of business income
Independent professionals, not employees
Most of these individuals work as freelancers or through their own companies, rather than as employees. As a result, their income is generally taxed as business profits, rather than employment income.
The principle of residence-based taxation
As a starting point, business profits are taxable in the country where the business is tax-resident.
Example: an influencer based in France, who films and monetizes videos from France, will have their income taxed in France.
3. When another country claims taxing rights: the concept of permanent establishment
No tax without a lasting presence
If an influencer or e-athlete temporarily travels to another country (for example, to attend Paris Fashion Week) without setting up a lasting presence there, that country will not generally have taxing rights on their business income.
But what if they open an office?
Things change if the person sets up a local office or team in the host country, managing collaborations or generating recurring business. In this case, the foreign tax authorities may argue that the individual has a “permanent establishment” in that country.
This concept is defined in most tax treaties based on the OECD Model Tax Convention, specifically:
- Article 7: allows the source country to tax business profits attributable to a permanent establishment.
- Article 14: applies to self-employed professionals and allows taxation in the source country if the activity is carried out through a “fixed base”.
4. How is a “permanent establishment” defined in France?
French domestic law does not give a clear definition of a permanent establishment. The concept has been developed through case law and refers to three main criteria:
- A fixed and autonomous place of business in France (e.g. office, studio, retail outlet)
- The presence of staff or representatives operating on behalf of the business
- A complete commercial cycle carried out in France, independent of the main business
In practice: the activity must be stable and autonomous enough to justify French taxation of the income generated locally.
5. Income paid from France: source taxation may still apply
Even without a permanent establishment, payments made from France can sometimes trigger French tax.
French domestic law (Articles 182 A to 182 C of the French Tax Code) imposes a withholding tax on payments made to non-residents for services performed in France.
6. The special rule: Article 17 of the OECD Model for entertainers and sportspersons
Article 17 is a notable exception to the general rules under Articles 7 and 14. It allows the source country to tax the income earned by entertainers and athletes for performances carried out on its territory, regardless of whether a permanent establishment exists.
The OECD Commentary also clarifies that Article 17 may apply to non-traditional forms of entertainment, provided there is a performative or entertainment element involved.
7. Real-life applications of Article 17
a) Influencers: marketing or performance?
Most influencers engage in promotional content creation, which doesn’t involve a performance. However, if their content includes comedy, choreography, or staged performances, they might qualify as entertainers.
Example: a Chinese influencer attending a fashion event in France and producing comedic, highly engaging content might be treated as an entertainer. Income derived from such activities could be taxed in France under Article 17.
b) E-athletes: digital competitors
E-athletes participate in international competitions and often receive substantial sponsorships. The OECD recognises that “mental sports” (like chess) fall under Article 17.
Example: a Canadian e-athlete attending a tournament in Paris could be subject to French tax on earnings related to the event.
c) Sextertainers: adult performers and taxation
Sextertainers, who produce live or interactive adult content, may fall under the “entertainer” category. In Geelen (CJEU, 8 May 2019, C-568/17), the EU Court confirmed that erotic performances qualify as entertainment.
Example: an American sextertainer streaming live content from a studio in France could be taxed in France on related income.
d) Edutainers: education or show?
Edutainers blend education and entertainment. Whether Article 17 applies depends on the dominant character of the content.
Example: a British edutainer hosting science shows in France could be taxed locally if the entertainment aspect clearly outweighs the educational purpose.
8. Why this matters now more than ever
With the rise of digital nomadism, tax administrations are increasingly focused on cross-border income streams.
Three factors increase the visibility of creators’ income:
- Mandatory reporting by platforms: digital platforms are required to report creator payments to tax authorities.
- Automatic exchange of information between countries helps detect unreported income.
- Artificial intelligence allows tax administrations to analyze and cross-check data more efficiently.
Conclusion
Professionals operating in the digital space must understand how their international activities are taxed — or risk double taxation and penalties.
If you’re an influencer, e-athlete, or content creator earning income across borders, I strongly recommend reviewing your situation in each relevant country : I regularly assist clients in structuring their activity and managing international tax risks with confidence.
S.ASSOGNA (sandro.assogna@avocat.fr)
