tax-law france corporate-tax-laws
Do TV games have tax exemptions when prize money goes to an non-profit?
<p>In some TV games, where participants are usually famous people, the prize money goes to charity organization. In France, donations to such organizations by individuals give right to tax exemptions. Do the producers of such shows (&quot;Fort Boyard&quot;, &quot;Qui veut gagner des Millions&quot;, &quot;LOL qui rit sort&quot;) have a right to the same tax exemption for game earnings, and do they use it ?</p>
<p>In other words, for instance when &quot;LOL qui rit sort&quot; announces 90k€ winnings for various charities, does it cost Amazon 90k€ or less than that due to tax exemptions ?</p>

<h2>It doesn’t matter who the winnings go to, they’re legitimate business expenses and therefore tax deductible</h2>
<p>The prize money for these shows is a tax deductible business expense just like the salaries of the cast and crew, the hire of the studio, or the marketing and advertising expenses. As such they are part of the expenses that are deducted from the revenues to determine the taxable profit.</p>
<p>Whether the winnings are taxable in the hands of the winners depends on local tax law. Some countries treat prizes as taxable income, some treat it as a non taxable windfall, and some make a distinction between professional “gamblers” and amateurs.</p>
<p>For those celebrity episodes, the celebrities are paid a fee for their performance (because it’s their job) and the prize goes straight from the producer to the charity.</p>
