STREET ARTISTS IN EUROPE - Fondazione Fitzcarraldo

Street Artists in Europe
Synthesis 2
Information taken from “Tax and social security. A basic guide for artists and cultural operators
in Europe”, by Judith Staines, March 2004. The scheme below is laid out by Fondazione
Fitzcarraldo.
Concerning taxation, information gathered around considers three essential elements depending
on which the art professional will be treated:
1. Resident or non-resident?
2. What work are you doing?
3. Employment status: self-employed or employee?
Taxation is the responsibility of the relevant government department in each country.
Research shows that the main areas of taxation which concern artists and cultural operators
working abroad are:
- Withholding taxes
- Income tax and other direct taxes on earnings
- Tax on royalties and copyright payments
- VAT.
Country profiles of tax regulation
[note: the scheme below, laid out by Fondazione Fitzcarraldo, gathers information about
national tax regulation contained in Judith Staines’ report, published in 2004; it is to point
out that national regulation can have changed meanwhile.]
Austria Withholding taxes of 20% are payable by non-resident performers.
Belgium Withholding tax of 18% is payable by non-resident performers. Expenses are not deductible and are
liable for tax. There are exemptions for performing arts companies from countries with which
Belgium has a tax treaty, but these are only allowed under certain conditions and are dealt with on a
case-by-case basis. Other exemptions apply when the performance is financed by a public authority,
for example as part of an official cultural exchange programme.
There has been considerable debate within the cultural sector over VAT. There are two VAT rates: a
general rate of 21%, a lower rate of 6% and some exemptions. The lower rate (originally intended to
apply to ‘necessities’ of life) applies to most cultural goods such as books but CDs attract the higher
rate. The subsidised performing arts sector has been zero-rated but certain activities are now subject
to the 6% rate. This is a specialist area and the promoter in Belgium must advise performers coming
to work there.
Individual artists (often described as artists “acting as a physical person”) are generally taxed unless
they provide proof that they pay their tax and social security in another country.
Denmark Withholding tax of 25% is payable by non-resident performers who can spend up to six months in
the country before coming under the normal tax regime. Income from royalties is taxed at 30% apart
from those paid to artists from countries with which Denmark has a double taxation agreement; in
which case the tax rate is lower than the normal rate or may be zero. Non-resident artists who are
self-employed (or employed by a non-resident employer) will not be subject to taxation in Denmark
as there is no internal provision for taxation.
Finland Withholding tax of 15% applies to the earnings of non-resident performers. Teachers and workshop
leaders are taxed at 35%. No deductions may be made for general production expenses but travel
and accommodation costs can be reimbursed (against receipts) and a per diem daily allowance can
be paid tax free. Performing artists coming from a national company which is owned and financed
by the state may be granted a tax-free exemption.
France Withholding tax of 15% applies to non-resident performers. Bilateral agreements exist with some
countries which exempt artists from withholding tax. The reduced VAT rate of 5.5% is generally
charged in the performing arts sector. Foreign companies who do business in France which is
subject to VAT must register there for VAT under a change in the law since 2002.
Form E101 exempts employees and self-employed artists resident in other EU Member States from
paying social security contributions in France. Artists employed in France, particularly in the
287
PE 375.307