WITHHOLDING TAX
The withholding tax is a tax that is deducted directly from your income, before you even receive your pay. This means that a part of your fee will be automatically deducted by the client or a government agency in the respective country and transferred to the local tax office. This is especially relevant in the modeling business, particularly for international jobs, for example when you are booked for campaigns, photo shoots or shows abroad. In such cases, it can happen that you receive a reduced amount instead of the agreed full fee, because a certain percentage was directly withheld as tax.
However, it is important to note that this withheld tax is not necessarily “lost”. Through so-called double taxation agreements between countries, in many cases you are prevented from paying taxes twice on the same income. This means that the withholding tax paid abroad can often be credited or partially reclaimed in your home country. For this, you usually need corresponding proof, for example a certificate of the tax paid. For models, this means: Especially with international jobs, you should always keep an eye on how your salary is taxed, and inform yourself or get advice early on to avoid financial disadvantages.
