Dáil Éireann Debate, Tuesday - 29 May 2018
155. Deputy Peadar Tóibín asked the Minister for Finance the estimated tax yield lost to the Revenue Commissioners due to the non-enforcement of a foreign artists withholding tax on visiting artists earning income from performances within the State; and if he will make a statement on the matter. [23119/18]
Amharc ar fhreagraThe only foreign artiste withholding tax which Ireland has is the film withholding tax (“FWT”). FWT is a 20% withholding tax that applies for certain payments to non-resident artistes. FWT only applies to non-resident artistes, who are resident outside the EU/EEA and who are engaged by companies qualifying for the film tax credit under section 481 TCA. It does not apply to support staff such as cameramen, producers, directors etc.
The FWT cannot apply to other artistes such as international music artistes who perform concerts in the State. I am informed by Revenue that there are no specific tax exemptions available to international artistes performing in the State. Artistes who are not resident in the State for tax purposes have a liability to Irish tax on income arising from the exercise of their profession in the State. However, because foreign resident artistes merely have a transitory presence in the State, there are numerous practical difficulties associated with enforcing such a liability. Where non-resident entertainers do not file an Irish tax return, there is no effective mechanism to quantify the potential tax exposure of such entertainers on the income related to their Irish performances and to collect any tax owing. However, an alternative system which would impose an obligation on paying agents to deduct tax from payments made to foreign entertainers and account for the tax to Revenue, would also present many difficulties such as the requirement to identify the paying agent, in order to enforce collection, as well as placing a costly compliance burden, both on Revenue and the non-resident artistes and paying agents. Imposing tax therefore would be administratively cumbersome relative to the potentially small prospective yield and would also undoubtedly discourage some artistes from performing in the State.
I can however advise the Deputy that in general where a concert takes place in Ireland, the artistes performance fee is subject to Irish VAT. Where an international performer is engaged by a promoter, it is the responsibility of the promoter to account for the VAT due on the performance fee. This means that where the promoter is established in Ireland, the promoter is required to account for Irish VAT on the performance fee. In circumstances where the artiste and promoter are both established outside the State, the promoter is required to account for VAT on the performance fee where she/he is established.
In addition, where a premises provider allows a promoter who is not established in the State to hold a concert on their premises, the provider must report details of the event to Revenue. Failure to do so can make the premises provider jointly liable for any VAT arising. This is a safeguard provision to ensure the correct VAT is collected and paid in relation to any merchandise sold at the concert venue.
