Niamh Smyth
Question:120. Deputy Niamh Smyth asked the Minister for Finance his plans to review the threshold of the artists exemption; and if he will make a statement on the matter. [7952/17]
View answerThursday, 16 February 2017
Questions (120)
Written answers
The artists' exemption provides for an exemption from Income Tax on the first €50,000 (increased from €40,000 in Budget 2015) of earnings in relation to certain categories of works, namely:
1. a book or other writing;
2. a play;
3. a musical composition;
4. a painting or other picture; or
5. a sculpture.
The exemption does not extend to income arising from:
1. royalties paid or associated with the performance of music whether by the composer or another artist;
2. performance royalties paid or associated from the sale of CDs etc.; (song writing royalties are exempt)
3. receipts from live performances;
4. arrangements, adaptations or versions of musical compositions which is not of such significance as to amount to an original composition;
5. any writing visual or musical work created for advertising or publicity purposes;
6. a book which is primarily used either by students in a course of study or by a person in a trade, business, profession, vocation or branch of learning as an aide to that trade, business, profession vocation or branch of learning;
7. Any work of journalism published in a newspaper, journal, magazine or on the internet.
In my view the exemption limit is already generous and applies in addition to the standard tax credits, which can be applied against income tax liabilities on income in excess of the threshold or income from other sources. Therefore, I have no plans to review the threshold at the current time.
However, the Deputy will be aware that a review of the potential for introducing an income averaging regime for artists was completed by my Department last year and was published along with all of the other Budget documentation on Budget day. That review can be accessed at the following link http://www.budget.gov.ie/Budgets/2017/Documents/Tax_Expenditures_Report%202016_final.pdf.
One of the findings of that review was that the artists exemption at the existing thresholds, already provides shelter for all of the artistic income of the vast majority of artists.