Tom Neville
Question:101. Deputy Tom Neville asked the Minister for Finance if he will address a matter (details supplied) regarding the artist tax exemption; and if he will make a statement on the matter. [18390/19]
View answerWednesday, 8 May 2019
Questions (101)
Written answers
S. 195 of the Taxes Consolidation Act 1997 (TCA 1997) empowers the Revenue Commissioners to make a determination that certain artistic works are original and creative works generally recognised as having cultural or artistic merit.
The scheme provides that the Revenue Commissioners can make determinations in respect of artistic works in the following categories only:
1. a book or other writing;
2. a play;
3. a musical composition;
4. a painting or other like picture;
5. a sculpture.
The Arts Council and the then Minister for Arts, Heritage and the Gaeltacht drew up guidelines, as provided for in the section, for determining whether a work, within the specified categories, is an original and creative work and whether it has, or is generally recognised as having, cultural or artistic merit.
Where a determination is made by the Revenue Commissioners in respect of a work, profits or gains arising from that work, up to a maximum of €50,000 per annum, are exempt from income tax.
While the scheme is directed at the artistic community only certain categories of income can qualify for relief. Where income is derived from an artistic performance e.g. acting, singing or dancing that income does not qualify for relief.
Any income derived from the publication, production or sale of the artistic work is eligible for the relief. In calculating the profits or gains from a work, costs or expenses, including for example the cost of materials, which were incurred by the artist, wholly and exclusively in the creation of the work, are deductible from the gross income received by the artist for the work.