Dáil Éireann Debate, Wednesday - 3 February 2010
155 Deputy Olivia Mitchell asked the Minister for Finance the parameters of the revised arrangements for the artists’ tax exemption as outlined in his recent budgetary statement; and if he will make a statement on the matter. [47571/09]
View answerNo changes were made to the artists exemption scheme in Budget 2010. However, the exempt income of artists is one of the specified reliefs which are subject to the restriction of reliefs measure. I announced significant changes in the Budget to the operation of the restriction from the 2010 tax year.
The adjusted income level at which the restriction will now come into operation was reduced from €250,000 to €125,000 and the level at which the full restriction will apply was also reduced from €500,000 to €400,000. In addition, the effective rate of income tax payable by those subject to the full restriction was increased from 20% to 30%. This income tax liability will be in addition to PRSI, the health levy and the income levy. These changes will affect, inter alia, artists with exempt income, where their adjusted incomes exceed the relevant thresholds by limiting the amount of income that can be exempted from income tax in a particular tax year. Full details of the changes will be included in the forthcoming Finance Bill.
