Estatuto Artistas Europa

8/12/2019 Estatuto Artistas Europa

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18/01/14 18:38COMPENDIUM/PRINTVIEW

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Report on Status of Artists - Policies and StrategiesReport creation date: 18.01.2014 - 19:37Countr(y/ies):Austria,Belgium,Croatia,Denmark,Finland,France,Germany,Greece,Hungary,Ireland,Italy,Monaco,TheNetherlands,Norway,Poland,Portugal,Russia,Serbia,Spain,Sweden,Switzerland,United KingdomChapter(s): 5,51,514,515,516

Austria/ 5.1 Ge neral le gislation

5.1.4 Social security frameworks

For a long time there were no specific regulations to ensure that social security provisions for artistsreached across all professional fields. Only artists in the music and visual arts sectors were covered by theobligatory social security provisions. All other artists were free to enrol in a social security insurance planof their choice. Several funds were created to help artists pay part of their (non-obligatory) social securityinsurance, the Knstlerhilfe Fonds for visual artists, for example (see chapter 8.1.2 ).

The Employment and Social Security Law Amendment Act (1997)produced an initial change: up until1997, artists had widely differing social security coverage, d epending o n their professional status, natureof labour relations and field of work. This amendment generally regulated labour conditions and required

contracts for all freelance workers in the form of either a Werkvertrag (contract for work) - also called the"new" self-employed, a term that describes one person enterprises without a trade licence - or a freier Dienstvertrag (self-employed contract of service), depending on the nature of the work (people who workunder the freier Dienstvertrag have more social protection than the self employed, but less than theemployed).

Following this amendment, anyone earning over 6 453 EUR per year was forced to pay social securityinsurance. Artists were exempt from this Law until the end of 2000 and were not obliged to pay socialsecurity insurance. Those who chose to pay the insurance could apply to the above mentioned funds, likeKnstlerhilfe Fonds (see chapter 8.1.2 ) to help cover the costs of their social security fees.

Artists have been comparatively successful in creating, improving and consolidating lobbies forthemselves. Authors and translators in particular, as well as cultural initiatives, and to some extentindependent theatre groups, cinematographers and media artists have been able to create associations andinterest groups to represent them in public, to lobby for more funds and commissions, to fight for legaland social improvements and for the maintenance of artistic freedom. Among their major achievementshas been an improvement in the flow of information on market opportunities and mutual communicationamong artists. As to their social security status, several reforms and improvements (copyright, socialsecurity scheme for artists and other social benefits) have been achieved by umbrella organisations,interest groups and collecting societies.

2001 the Law on Social Security for Artists (Knstler-Sozialversicherungsfondsgesetz) came into force(since 2011 it has been called the Artist's Social-Security Insurance Structure Act ) and freelance artists aretreated the same as other self-employed professionals, which means they must pay their statutory social
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security insurance if they earn more than 6 453 EUR per annum. In many cases, the new Law created asituation whereby artists end up making two different types of social insurance payments: statutoryinsurance for freelance work and any other social security insurance payments which result from otherpart-time employment contracts they may have. As many freelance artists are employed both part-timeand do freelance work, the contribution to the social security system is relatively high compared to totalincome. There was a change here in 2009, and indeed one that applies for those cases in which additionalto self-employment there is a further income: if this income exceeds the threshold of EUR 4 641 (2013,the amount is being adopted annualy) it will also be subject to the obligatory social insurance payments.

The Law set up a Social Security Insurance Fund for Artists (Knstlersozialversicherungs-Fonds) whichgrants artists a pension supplement of up to EUR 130 per month, if their annual income from artisticactivity is at least EUR 4 641 (2013) and the sum of all their income does not exceed EUR 23 208 (2013)annually. This amount increases for each child. The pension supplement is based on self-evaluation of future income. If either of the above limits is not achieved, or is exceeded, the supplement has to be paidback. Those artists entitled to receive a grant must meet certain requirements such as being specificallytrained (art-university graduates, for example). Others are selected by a specific board (commission). Eachyear about 4 500 to 5 000 artists receive this pension supplement; about 20% do not reach the minimum

level.The new Social Security Insurance System was widely criticised by artists and their professionalassociations, mainly because of the exclusion of artists on very low incomes. Further demands were tosecure obligatory contributions to the fund by the federal government and a supplement not only forpensions but also for health and accident insurance.

The reform of the artists' social insurance is among the cultural policy priorities of the new government.Based on the study "On the social situation of artists in Austria", which the Ministry for Education, theArts and Culture commissioned in 2008, and on a working conference following publication in 2009, aninter-ministerial working group has drafted further amendments to the law and proposed measures toimprove the situation of artists.

Two results have so far been presented: on the one hand, a service centre for artists that offers advice andsupport for social-security issues has been established. However, this does not provide a "social securityunder one roof" covering both freelance and directly employed, artistic and non-artistic activities, ascalled for by the interest-group representatives. The second change concerns the opportunity from 2011for artists to register their self-employed activity and the resulting obligatory insurance as being idle, sothat they have access to benefits from unemployment insurance. The interest-group representativesperceive these measures as a necessary first step to improve the social situation of artists in Austria.However, there is no sufficient concrete progress, and additional claims are drafted under:

http://www.kulturrat.at .See also comparative information provided in the Compendium "Themes!" section under " Status of Artists ".

Austria/ 5.1 General legislation

5.1.5 Tax laws

In Austria, only an estimated 1.94% of the overall cultural funding is supplied by the private sector despite

the existence of a "Sponsors' Ordinance" regulation adopted by the Federal Ministry of Finance in 1987.Under this regulation, an enterprise / entrepreneur is granted a tax break on expenses for sponsoringcultural events. The ordinance lists various criteria that must be fulfilled in order to qualify for the tax
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break (sponsoring must, for example, be in the form of an advertisement). This regulation only allows fora very small amount of expenditure to be tax deductible; however, plans for the introduction of newlegislation, which has long been discussed, have been announced.

On the basis of an amendment to the Federal Arts Promotion Act (1988) in 1997, certain public subsidiesare tax free, retrospectively to 1991. These include: grants, prizes and supplements from the Austrian FilmInstitute for promoting the creation of film concepts and screenplays; income and assistance from public

funds or from the funds of public or private foundations, as far as compensation for expenditure orexpenses is concerned, or with the exception of private foundations for activities abroad.

Income up to EUR 11 000 annually is tax free. Income from EUR 11 000 to EUR 25 000 is taxed at36.50% and income over EUR 25 000 and up to EUR 60 000 is subject to 43.21% tax. Income above thisis as before subject to a top rate of 50% tax. Owing to the progressive income tax tariff, it is mostfavourable if one earns roughly the same amount each year. For creative workers, however, it is normalfor incomes to fluctuate greatly. For this reason, since 2000 they have been able to spread artistic incomeover three years: one third of the surplus of the current year is assigned to the current year and each of thetwo previous years.

Since 2000, artists from abroad have been able to apply for the partial or full cancellation of tax liabilitiesin Austria that are in excess of tax liabilities in their country of origin if their establishment of residenceserves to advance art in Austria and if there is public interest in their work.

Since 2002 donations made to museums (to important country-wide private museums, as well as to federalmuseums) are tax deductible.

There are two tax rates under the Austrian VAT Law (1994), one at 20% and a reduced rate at 10%. Thereduced rate applies to turnover related to artistic activities, cinema, theatre and concert tickets, museums,botanical gardens or nature parks, as well as services by the Austrian Broadcasting Corporation (ORF)

and cable TV companies, books magazines and dailies. There is 20% VAT on music CDs.

Austria/ 5.1 General legislation

5.1.6 Labour laws

Alongside the growing rate of unemployment, the structure of employment has changed considerably inrecent years. For example, the number of people working under a freier Dienstvertrag (self-employedcontract of service) has risen by more than 150% since 1997; in 2012 the figure was approximately 20 000people. It is similar for people working under a Werkvertrag (contract for work) or "new" self-employed: here the number almost quadrupled between 1998 and 2002, from 7 700 people to 30 300; atthe end of 2008, there were 44 000. Generally, all freelancers fall outside the system providingentitlements and protective measures envisaged by the general Austrian Labour Law . Since January 2008,however, freier Dienstnehmer have had unemployment insurance .

In the field of the performing arts, there is a specific labour law, the Actors' Law (Schauspielergesetz,1922, amended 2011) regulating the working hours, holiday rights and bonuses for actors, which aredifferent from the employee regulations. Formerly, actors were assumed to be employees but fullemployment with all the costs and obligations for employers (e.g. festival-organisers) is now oftencircumvented. New legal conditions to improve their situation is being created for actors, too in the

course of findings and working results from the study "On the social situation of artists in Austria" and thestudy "Precarious freedoms: work in the free theatre field in Austria", ed. Sabine Kock, Vienna 2009. Theinterministerial working group, which since 2009 has been working on improvements for artists, has


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brought the " Actors' Act ", last amended in 1922, up to date. Since January 2011, as the " Theatre Employment Act " (B-ARG), it covers all workers in a theatre company together and envisages adaptationto the Holiday and Working Hours Law . It has been criticised that the law only brings meaningfulimprovements for actors who are directly employed in the major theatres. As before, for short-term,changeable employment between direct employment and self-employment with intervals of unemployment or without income in the freelance theatre field, no legal security can be created. The factthat the new Law does not include film actors is also criticised, as it does not correspond to actors'professional reality.

See also comparative information provided in the Compendium "Themes!" section under " Status of Artists ".

Belgium/ 5.1 General legislation


In 2000, measures were taken to enable artists who receive unemployment benefits to practise their artmore freely, which hitherto had been prohibited by law.

In December 2002, the federal parliament ratified measures to improve the social security system forartists. On July 1st 2003, this regulation came into effect. The main points are:

artists are treated either as employees or as self-employed for the purposes of social security. Tostimulate salaried work for artists, employers are given a discount on their share of social securitycontributions to compensate for these additional costs;child and holiday allowances for artists which are covered by the employees' regulation will be paidby the federal government. This will simplify the payment of allowances caused by working fordifferent employers; andthose who infrequently hire artists (e.g. for an occasional show in a caf or for an individualcommission) can apply to the "Social Bureau for Artists" to take care of the employer's share of administrative procedures. These bureaux, mostly interim offices, must be recognised by theregional authorities.

On 1 July 2004, the additional "small fees scheme" came into effect. Under this scheme, artists canreceive a small fee that is exempt from social security contributions. Since 1 January 2007, the "small fees

scheme" is tax free.See also comparative information provided in the Compendium "Themes!" section under " Status of Artists ".


5.1.5 Tax laws

Tax regime for income on royalties

On 30/07/2008 a tax regime for income generated from copyright and related rights was published in theBelgian law gazette. Individuals who receive income from the transfer (assignment or concession) of
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copyright and related rights, as well as legal and compulsory licenses provided for in the Copyright Act ,will be taxed advantageously. The scheme is applied from January 1, 2008 (tax year 2009).

VAT

A new VAT system has been in force since 1993, which was the result of a harmonisation of the differentsystems in the European Union.

The VAT system is divided into two rates: a high rate of 21%, and a low rate of 6%. The low rate appliesto most cultural objects (magazines, books, original works of art, collector's objects) and services (ticketsfor productions, copyright).

Belgian legislation allows for many cultural exemptions ( Article 44, 2, 6-9, VAT Code ) including:

the hire (renting) of objects of a cultural nature, if these are made available on a non-profit basis;visits to museums, (natural) monuments, botanical gardens and zoos which are not exploited forprofit;services by performing artists for organisers / companies provided by actors, leaders of orchestras,musicians and other artists; andthe organisation of theatre, ballet or film productions, exhibitions, concerts or conferences byinstitutions recognised by the competent authorities, provided the income they gain from theiractivities is used exclusively to cover the costs incurred.

Such exemptions mean that there is no right to deduct tax in advance. The exemption for performingartists providing services to organisers / companies was also extended to unions of performing artists suchas theatre companies. However, on 1 April 1998, this tax exemption was limited to individual performingartists ( Letter no. 13 of the Minister of Finance, dated 19/11/1997 ). Since then performances which arenot given by individuals would become subject to tax at 6%. The scope and application of this new

interpretation remains very unclear and local tax inspectors are sometimes confused regarding theallocation of VAT status to theatre companies applying on the basis of Letter no 13. On 24 October 2006the matter was discussed in the Chamber Commission of Finance. The debate led to the conclusion that:since new legislation is not to be expected in due course, companies can choose the best suitable system.

Income tax

In some cross-border situations, the Belgium government is allowed to tax the income of non-residentswho earn money by working in Belgium. However, this depends on co-operation agreements (doubletaxation laws) reached with the corresponding countries. For visiting artists, this system can lead to adeduction of company tax from the income which they earn for their performances in Belgium. This taxshould be deducted by the Belgian organisers of the performances.

Flemish Community

The Law of 17 May 2004 , regarding the change of Article 194b of 1992 on income tax, with regardto the tax shelter arrangement for the benefit of audiovisual production.

French Community

Law of 17 May 2004 , regarding the change of Article 194b of 1992 on income tax with regard to thetax shelter arrangement for the benefit of audiovisual production.

Tax shelter


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From January 2003 onwards, investors can enjoy a tax exemption for the amount they invest in Belgianaudiovisual work. This amount may partly consist of loans.


5.1.6 Labour laws

Labour laws are the responsibility of the Federal Government and are carried out by the EmploymentMinister (Federal Employment, Labour and Social Negotiations Government Service). Exemptions for thecultural sector are provided in legislation relating to night work and the protection of Sunday as a rest day.

The social partners, represented by unions and employer federations, are deeply involved in the realisationof regulation in the labour sector.

The joint committees (JC) include an equal amount of employer and employee organisationrepresentatives, under the direction of an independent chairperson. JCs have been set up for all branchesof industry with the aim of grouping companies with similar activities and to develop instructions adaptedto labour conditions. The JC assignments consist mainly of concluding collective labour agreements,preventing or solving social disputes and advising on policy.

In principle an employer does not freely choose which JC deals with its activities. This is determined onthe basis of an employer's activity and the responsibility of each JC. The following JCs are important forthe cultural sector:

PC227 (audiovisual sector office workers);PC303 (film company employees including office workers);PC304 (employees including office workers of entertainment companies, incl. music and

performing arts); andPC329 (employees including office workers in the socio-cultural sector).

The collective labour agreements that are concluded in the JCs can be accessed athttp://www.meta.fgov.be/ .

A collective labour agreement (CLA) is an agreement that determines individual and collective relationsbetween employers and employees in companies or branches. When an employer is bound by a CLA, theresulting rights and obligations apply to all employees, regardless of whether they are members of theunion(s) in question. The sectoral CLAs are mainly concluded in joint committees or sub-committees.They determine the jobs and corresponding wages for a sector and can include arrangements regardingflexibility.

These agreements can be declared generally binding by the King of Belgium and an employer oremployee cannot divert individually from this type of CLA. A major example is the Music CLAconcluded in PC 304, which is generally declared binding so it applies to everyone who employs amusician, including for example a pianist who plays part-time in a hotel or restaurant.

The Performing Arts CLA provides arrangements for flexible work in all companies and organisationssubsidised by the Flemish Community.

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Croatia/ 5.1 General legislation


The legislator has acknowledged the special status of freelance artists in comparison with other workers.They have the right to retirement and disability insurance and to health insurance. Contributions are paidfrom the state budget (see also chapter 4.3 ). The Croatian Freelance Artists Association (HZSU)encourages and promotes creative work and public activity in culture and the arts, and it representsfreelance artists' common interests, so as to help them achieve their goals and to protect their rights. Afreelance artist becomes a member of the Association on the basis of his or her creative work and so canapply to have his or her contributions paid from the National Budget, as long as he or she meets thecriteria laid down in the Regulations about the procedures and conditions for the recognition of the rightsof artists to have their retirement, disability and medical insurance paid out of the national budget of the

Republic of Croatia . Applications by the artists are considered by the Expert Commission, and decisions

are subsequently confirmed by the Minister of Culture. When the Expert Commission has made afavourable decision, the Croatian Association of Freelance Artists registers the freelance artist with theCroatian Institute for Retirement Insurance and the Croatian Institute for Health Insurance according to anartist's place of residence. There are 30 arts associations which appoint their members to the expertcommissions (list available at: http://www.hzsu.hr/links.html ).

With the changes in the by-laws on the rules and conditions for granting the right to independent artists toreceive retirement and health insurance from the state budget in 2004, a more efficient system was put inplace. If an independent artist earns, during a 3-year period, less than the average of a fully employedacademic artist's salary, he / she is entitled to receive health and social security benefits paid from the statebudget. Those who earn more than this amount will no longer be entitled to additional state support.

According to available data from the Ministry (MK, 2007: 15), the number of independent artists hasincreased in the period 2003-2007; from 1263 to 1341. However, it can be said that the upward trendhas diminished during the crisis period; according to online data from the Croatian Freelance Artists'Association (HZSU) in June 2010, there were 1 316 freelance artists registered, while in November 2012the number lowered to 1 283 artists (the date of this unofficial online data was not listed), while inOctober 2013 there were 1 303 freelance artists listed on the HZSU website.



5.1.5 Tax laws

Although legal incentives exist to encourage private support for culture, it can still be considered marginalcompared to the funding provided by the public sector. The same is true for foundations and funds, despitethe Law on Foundations and Funds that was passed in 1995, amended in 2001.

Freelance artists have the right to receive specific tax benefits. An income of less than 20 000 HRK a yearis not taxed (approximately 2 740 EUR). Compensation for per diems and travel expenses is notconsidered part of the income. 25% of authors' fees are not taxed, and another 30% are recognised as
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business expenses.

Donations made for cultural purposes to associations and other legal entities engaged in cultural activitiesare not taxed. Donations of up to 2% of the donor's total annual income are recognised as such by law,while donations exceeding this sum must have a certificate issued by the Ministry of Culture.

In 2012, the regular VAT rate, which applies to other cultural goods and services, was changed from 23%

to 25%. With Croatia entering the EU, the tax rate on books and cinema tickets changed from 0% to 5%;for concert tickets and other cultural events it is 10%, while for e-books it remained at 25%. Allnewspapers that have valid media statutes are taxed at 5%.


5.1.6 Labour laws

There is no specific legislation regulating labour relations for the cultural field. There is also no systematicmonitoring of trends regarding cultural employment. However, according to the Strategy for CulturalDevelopment in Croatia (Cvjeti ! anin and Katunari " , 2001) the labour market shows some general trendstowards more flexible employment similar to those observed in other European countries. The StateInstitute for Statistics produces annual reports based on a very narrow definition of culture (see chapter4.2.3 ).

There is a unified system of salaries for those working in the public sector, including those employed instate-established cultural institutions and those working in the city or municipal cultural institutions.

The Union of workers employed in the cultural sector (HSDK) - cultural institutions, ministry of culture,etc., includes freelance artists as well. In 2003, HSDK signed a collective agreement for employees

working in the cultural institutions whose salaries are paid from the state budget (NN 2/04, addition NN77/07). In 2012, the government cancelled the Collective Agreement for public sector employees, and thisincluded those employed in culture. The new Collective Agreement for state and public sector employeeswas signed by HSDK in December 2012, while the negotiations for collective agreement for employeesworking in the cultural institutions was still under discussion in September 2013.

There is a need to clarify the position and rights of those who are employed in institutions vis--vis self-employed or freelance artists and cultural workers. It can be expected that this issue will be put on theagenda in the future. The Union of Actors was established 18 years ago, but still it does not functionproperly. An initiative for the establishment of the Union of Freelance Artists was outlined in 2008, but itis still not active.


Denmark/ 5.1 General legislation


Besides the regular labour market legislation, there are no special social security arrangements for artistsand cultural workers in Denmark. Artists operate under the same social security system as all other
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citizens.



5.1.5 Tax laws

Cultural production and distribution is generally taxed on the same basis as regular tax regulations onincome from other activities. However, some special agreements have been passed by the Parliament inorder to improve the economic working conditions of the cultural system, through tax regulationsspecially targeted to artists themselves, specific exemptions on corporate taxes for investment in culture,laws on private foundations of public utility and VAT exemptions:

Act nr. 1062 of December the 17th 2002 on tax equalisation of income from artistic creation made itpossible for artists to split their income over different tax years; for example artists with a maximumincome of up to 539 000 DKK per year can store the amount for up to 10 years for later taxation. Thisdoes not count for performing artists.

Tax exceptions in the cultural field

Until 2002 only certain specific awards, e.g. The Nobel Price was tax exempted. In 2002 ( Act No. 391,June 6 2002) this exemption was extended to all awards, if the award was given as a sign of recognition of the artist's merits. The condition was that the award was not been applied for and that it was a one-timepayment. Act no. 538 of 6 June 2007 further extended this exemption, so that awards from privatecompanies were included.

Furthermore The Law on Tax Exceptions in the Cultural Field ( Act nr. 138, passed by the Parliament,December 20, 2004) made it easier for private companies to deduct investments in the arts. When acompany buys a painting, up to 25% of the price can be deducted for tax purposes. Most recently, Act nr.1389 of 20 December 2004 also made it possible for private companies and funds to donate gifts to publicsupported cultural institutions. Conditions attached are that the gift must be donated without anyapplication and a maximum of 25% of the donation can be deducted for tax purposes.

Law on taxation funds

The Law on Taxation of Funds ( Act no.145 of 19 March 1986) was introduced to take effect from the tax

year 1987. It was part of the tax reform of 19 June 1985. Since then a number of adjustments have beenmade, but the principles from the 1986 law remain intact. The main principle is as follows:

According to the Law on Taxation of Funds , funds are taxed by rules, which are in principle similar tothose applicable to joint-stock-companies. In order to avoid hindering a fund from looking after suchinterests as are stated in its statutes, the Law on Taxation of Funds comprises a number of exceptionalrules on rights to tax deduction of division of profits and deposits:

the fund may, according to rules similar to those governing limited companies, deduct operationalcosts. Expenses for sponsorships that are part of the fund's operations in reaching its aims may thenbe deducted as operational expenses;there is no tax limit on the amount a fund may give out for sponsorship. However, the sponsoredamount may not exceed the taxable income assessed after the normal rules;
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a distribution may be tax deductible either as an unspecified charity, as a distribution for thecommon good or as a statutory distribution. If it is the latter, then a condition for tax deduction isthat the receiver of the distribution is taxed;furthermore, the fund may deduct an amount corresponding to 25% of a year's distribution to thecommon good for consolidation purposes; andif the economic conditions within a fund disallows the implementation of a project in one go, thereis the possibility of setting aside deductible funds for later distribution for the purpose of commongood. If the purpose is cultural or artistic, it may be permitted that deposits are made to non-specified projects that have to be realised within a period not exceeding 15 years.

Thus, funds have wider access to tax deduction for grants to cultural activities than private corporations,because there is no tax limit to the amount a fund may give out for sponsorship.

Although the Law on Tax Exceptions in the Cultural Field ( Act nr. 138, passed by the Parliament, 20December 2004, see above) has made it easier for private companies to deduct investments in the arts andto donate gifts to public supported cultural institutions, only a maximum of 25% can be deducted for taxpurposes, e.g. when a company buys a painting or donates money to a local music school.

But funds cannot both deduct donations to cultural purposes according to the Law on Taxation of Fundsand then also according to the Law on Tax Exceptions in the Cultural Fields rules of tax deduction forgifts to cultural institutions.

VAT exemptions: The Danish rate of VAT on cultural services and goods is 25%; e.g. Books and musicCD's are taxed at 25%. But a few exceptions do exist:

in the case of a first-time sale of an artist's own works, the artist and the artist's heirs may sell VAT-entitled works at a reduced price corresponding to 20% of the VAT taxation base ( VAT Law 30, 3 )inserted through Law No.375 of May 1994);

an artist or the artist's heirs, who sell their own works of art for the first time, do not have to registerfor VAT when the sale does not exceed DKK 300 000 either in the current or the previous calendaryear ( VAT Law 49, 2, No 2 , inserted through Law No 375 of May 1994, changed through Law No291 of May 2002);on imports of artefacts, the VAT calculation base is 20% of the base applicable for importing fromnon-EU countries;sports activities and sports arrangements are exempted from VAT - VAT Law No 375 of 1994;cultural institutions, including libraries, zoological gardens etc. are exempt from VAT, includingclosely associated goods deliveries. The exemption does not include radio and television broadcasts,cinema-and theatre performances or concerts or similar arrangements.( VAT Law 13, 1, No 6, Law

No 3 75 of May 1994);fees received from writing-and composing work, as well as other artistic activities, is exempt fromVAT. The exemption does not include sale of art artefacts. ( VAT Law No 375 of May 1994);deliveries of goods and services in connection with charity arrangements and collecting and sale of used goods of small value is, under certain conditions, free from VAT duty ( VAT Law 375 of May1994); andcharitable societies' sale of goods and benefits in connection with activities are, under certainconditions, exempt from VAT ( VAT Law No 375 of May 1994).


5.1.6 Labour laws


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There isn't any specific labour law in Denmark that applies to artists or other people employed in thecultural field. The current Danish Labour Law is valid for all Danes, regardless of their profession.


Finland/ 5.1 General legislation


Cultural workers, including most of the cultural professionals employed in publicly owned or publiclysupported cultural service systems including the performing arts are covered by the compulsory socialsecurity and pension systems. This is also the case for those who are more permanently employed byenterprises of the culture industries and by professional / trade associations in the fields of the arts and

culture. This overall social security protection does not, however, cover free (self-employed) artists andfree-lance cultural workers.

There have been attempts to improve the pension and social security system of self-employed artists andnon-taxable grant receivers. The general Pension Law , the Act on the Pensions of Artists and SomeParticular Groups of Short-Time Workers , has standardised the situation for freelance artists andprofessionals who are employed and working in the premises of an employer. The position of self-employed artists and free-lancers and persons whose work has been financed for long periods by non-taxable grants has remained weak. There have been demands for reforms in three issue areas:

to include unemployment insurance and pension payments as part of the social security costs, evenin the accumulation of shorter-term grants;to make the tax-deductions, pension and social security system of artists and freelancers relate betterto the uneven and varied flow of artists' income; andto improve the rights of artists as freelance entrepreneurs.

Some planning progress has been made in all of these issue areas but only one reform crossed thethreshold of legislation. The government presented to Parliament a Bill where self-employed artists andthose on short-time grants are given an opportunity to enrol in the pension and social security systems of agricultural entrepreneurs. Parliament passed the Bill and the amended Act entered into force on 1 January2009. There is not yet information about how well the target groups have used this opportunity.



5.1.5 Tax laws

There are no legislation or special administrative arrangements that would offer incentives for businesssponsorship . On the other hand, income taxation legislation ( Income Tax Act , paragraph 57, amended in

2007) offers tax deductions for donations.

More specifically corporate actors (not a private individual) can deduct:


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a minimum of 850 EUR and a maximum of 250 000 EUR donation to promote art or science or tosupport the protection of the cultural heritage; the deduction limits are the same where the receiveris another EEA state, publicly supported university or other institute of higher education or a fundlinked to either of the latter two;

and other deduction limits are

a minimum of 850 EUR and a maximum of 50 000 EUR donation to promote science, art or topreserve Finnish cultural heritage and where the receiver is an association or a fund linked to eitherof these two and has its main goal to promote arts, science or preservation of Finnish culturalheritage and belongs to the Taxation Board's list of the rightful receivers.

The Income Tax Act (paragraph 22) also defines the criteria for non-profit organisations ("organisationsaccruing collective benefits"), which can have total income tax relief for their small-scale non-commercialbusiness activities. There have been debates under which condition this tax relief may be in conflict withthe EU Treaty, Article 87 , which prohibits competition distorting subsidies or financial transfers of anyother forms of resources to market organisations.

Regarding tax rates, the Finnish VAT Act has been enacted to suit the valid EC / EU VAT directives. SinceJuly 2010 the basic VAT-rate in Finland has been 23%. The lower VAT-rate of 9% is applied for booksand income fees of cultural, art and entertainment services and performances (entrance fees to museums,box office receipts from cinemas, theatres, orchestras and circus, music and dance performances). TheVAT on sales of (non-exported) works of art, by artists or by individual owners of artist's rights (initiallyzero rate until the end of year 2002), is also 9%. The VAT-rate on the price of newspapers and journalswas zero until the end of 2011, but since 1 January 2012 the VAT-rate of 9% has been applied also to thissector. On government decision of March 2012 the VAT-rate will be raised from 1.1.2013 onwards to24% and 10% respectively.


5.1.6 Labour laws

The main legal instruments that regulate the use of the Finnish labour force are the Act on LabourContracts and the Act on Civil Servants . Both define the rights of the employees and the obligations of theemployers. The Finnish tri-partite system of collective bargaining (income negotiations) "activates" theselaws often and this may result in their revision. They as well as the rounds of collective bargaining arerelevant from the point of view of performing arts and cultural services. Self-employed artists andfreelance workers are, of course, outside these laws and the more comprehensive system of collectivebargaining, although the negotiation results of these larger systems may also shape their workingconditions and benefits.

General labour laws also have regulations that concern discrimination, yet the protection against genderdiscrimination is stipulated in the Equality Act (see chapter 4.2.10 ).


France/ 5.1 General legislation
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Civil servants have a specific social security regime, salaried workers are managed by the Social SecurityOffice and independent workers have their own sectoral social security offices.

Paralleling the emergence of the Welfare State, public authorities tried to improve the social status of artists and creators: with the creation of the Caisse nationale des lettres in 1946 (nowadays the National

Centre for Books and Literature), the Copyright Law of 1957, social security for artists-authors in 1964(see for instance: law n 75-1348 of 31 December 1975 on social security for artists, authors of literaryand dramatic, musical and choreographic, audiovisual and cinematic, graphic and visual works; articleL.382-1 and following with the Social Security Code).

A specific social security regime for temporary and occasional workers ( intermittence ) was set up in 1936for the technicians of the cinema industry and from 1969, performing artists and interpreters were alsocovered, followed by technicians in the performing arts. With this regime, named " intermittence duspectacle ", performing artists and technicians benefit from the presumption that they are salaried:consequently, they have access, despite discontinuity in their employment, to various measures for socialsecurity coverage (health insurance, unemployment benefit, insurance for incapacity and death, retirementpensions, housing aid, etc.) and professional training. For about ten years now, the Ministry of Culture hashad to face the question of preserving this exceptional law, partly because of its cost and of certain abusesthat can be observed (see circular of Prime Minister of 6 August 2003 on the mobilisation of statedepartments relating to the economic and social situation in the audiovisual, cinema and performing artssector). In 2008-2009 the Entretiens de Valois were organised at the Ministry of Culture betweenstakeholders of the performing arts sector, to tackle these issues and revise performing arts policies.Nevertheless the question of intermittence was not entirely dealt with. The current legislation, which waslast revised in 2007, will be renegotiated in 2013.

See also comparative information provided in the Compendium "Themes!" section under " Status of

Artists ".


5.1.5 Tax laws

There is no general tax legislation for culture, but many special measures operate in the different domains.More information is available on http://www.culture.gouv.fr/culture/infos-pratiques/fiscal/index.htm .

Tax laws for culture pertain to five major sectors:

artistic and literary creation;preservation of cultural heritage;promotion of culture;cinema, broadcasting and the music industry; andpress and publishing.

Law n 2003-709 of 1 August 2003 on sponsorship, associations and foundations aimed at enhancing thetax regime in these areas.

The main tax laws concern tax exemptions, wealth tax or also the implementation of specific VAT rates.There are several VAT rates in France (some are specific to Corsica and overseas territories):
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normal rate 19.6%intermediary rate 7%;reduced rate 5.5%; andparticular rate 2.1%.

The normal rate applies to the majority of goods and services.

The intermediary rate applies to cinemas, feasts and funfairs, and the entrances to zoos, museums,monuments, exhibitions and cultural sites.

In 2013, the VAT rate (changed from 5.5% to 7% in 2012) was restored to 5.5% for:

books (paper and digital) and book rental activities; andticket-selling for the performing arts: theatre, cabaret, circus, concerts and shows (except inestablishments where food and drinks are served).

The particular rate of 2.1% applies to press publishing, to the public licence fee for broadcasting and toticket prices for the first 140 performances of newly created or newly staged theatres works.

From 1 January 2014, the main VAT rates will be modified by article 68 of Law n 2012-1510 of 29December 2012, the third corrective finance act of 2012:

the reduced rate will be lowered from 5.5% to 5%;the intermediary rate will be raised from 7% to 10%; andthe normal rate will be increased from 19.6% to 20%.


5.1.6 Labour laws

A specific social insurance regime applies to authors and to "artists-authors" (writers, music composers,film and television authors, software authors, choreographers, photographers, visual artists, graphic artists,etc.), by which they can benefit from social coverage under the same conditions as salaried workers.

Artists and technicians working in the performing arts or audiovisual and entertainment industries (film,television, etc.) can have specific social security coverage designed for people without regular activity orsteady employment, a regime commonly called the intermittence du spectacle (see chapter 4.2.9 andchapter 5.1.4 ).


Germany/ 5.1 General legislation


Artists and journalists / authors in the Federal Republic of Germany enjoy comprehensive social securitycoverage. When employed, they are covered under the general social security regimes. Self-employed
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artists and journalists / authors are obliged to join the Artists' Social Insurance Fund (KSK ). The specialprotection for self-employed artists and journalists / authors provided for under the Artists' Social

Insurance Act (KSVG) which came into force on August 2nd, 1981 encompasses statutory health, long-term or old age care and pension insurance. Like employees, the artists and journalists / authors must onlypay half of the social insurance contribution. Sixty percent of what could be labelled an "employers share"is paid by the companies that regularly exploit and market the work of artists and journalists / authors. Tothat effect, the enterprises are charged with an artists' social insurance levy ( Knstlersozialabgabe ) on allfees and royalties paid, whose level is subject to annual adjustments. For example, the levy reached 5.8%in 2005 and then decreased in the following years to 4.1% in 2013.

In addition, the Federal Government provides a subsidy to help fund the supposed "employee's share"with 40% of the expenditures of the Artists' Social Insurance Fund . Through another amendment of the

Artists' Social Security Law that came into effect in June 2007, the financial basis of the Fund wasimproved by broader coverage and a stricter examination of all contributors, including the artists asbeneficiaries. In September 2008, the attempt of some Lnder in the Bundesrat to abolish the SocialSecurity Act for Artists failed, due to a broadly supported protest against such plans both from culturalpolicy makers of all parties and from culture and artists' associations.



5.1.5 Tax laws

Indirect state support for the arts and culture in the form of tax breaks is not laid down in a separate pieceof legislation but instead consists of a multitude of regulations contained in various specialised acts. In the

case of VAT, some cultural products (such as books) are subject to a lower rate of 7% instead of thestandard 19%; under certain conditions, public cultural operations and non-profit activities (e. g. theatreperformances) are exempt from VAT and corporate tax altogether.

Since January 1st, 2000 , an Act on the Taxation of Foundations is in force, which includes tax incentivesfor the establishment of and donations to foundations. In recent years, additional tax breaks have beenincorporated into the law governing donations, and the tax-exempt ceiling for income from voluntaryactivity (the so-called standard exemption for course instructors) has been raised and extended to apply toother groups.

The reform of the Law on Non-profit Character and Donations in July 2007 eases taxation of civiccommitment. Amongst others, donations remain free from income tax to a limit of 20% and the tax freeallowance for the establishment of foundations was raised from 300 000 EUR to 1 million EUR.


5.1.6 Labour laws

With the exception of the Artists ' Social Insurance Act (see chapter 5.1.4 ), there are no special lawsregarding the terms of employment for artists and other cultural workers. The general labour legislation isapplied. If artists or cultural workers are employed in municipal, Lnder or federal facilities, then thepublic service regulations are applied. On the basis of the general Wage Agreement Law (TVG), specialcontracts and wage agreements for the cultural sector, including non-artistic staff, were concluded by
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unions and employers organisations for single artistic sectors and cultural facilities such as theatres,orchestras and music schools. The conditions of work for main occupational groups such as singers,actors, orchestra musicians etc., are laid down in these agreements. In addition, special courts of arbitration have been set up to settle employment disputes in theatres ( Bhnenschiedsgericht ).

The right of employees to participate in decision making processes is guaranteed through the GeneralWorker Co-determination Laws ( Mitbestimmungsrecht ) and similar regulations for public service staff.

However, these rights are somewhat restricted in companies such as e.g. theatres, museums or libraries aswell as newspapers abd broadcasters with regard to management decisions of artistic or scientificrelevance (the so-called Tendenz schutz ).

Of relevance for independent artists and journalists is a regulation from the 1970s in the Wage Agreement Law ( 12a TVG ) which was revised in October 2005. Under the law, freelancers who workpredominantly for one company can enjoy an "employee-like" status which allows their professionalorganisations to conclude wage or fee agreements with their contractors.


Greece/ 5.1 General legislation


Collective agreements for performing artists, such as actors, were established upon the initiative of MelinaMercouri in the early 1980s. Such agreements have been established with public television and radiocompanies and between the Association of Greek Actors with theatre entrepreneurs. Typically, performerswork on short term engagements, either as independent contractors or on a day salary basis, and often findit difficult to collect the necessary time credits in order to be paid a full pension.

Nevertheless, the framework of social security for self-employed artists and authors remains sorelylacking. The Ministry of Culture has intervened in several public cases of financial hardship of writers,artists or actors to offer financial support. It operates an honorary pension scheme, which is, however,limited to a small number of writers and artists deemed to be of national importance ( Law 3075/2002 ).


Artists ".

Greece/ 5.1 General legislation

5.1.5 Tax laws

For many years, there have been few legal and financial incentives to promote sponsorship in the fields of culture and the arts. An Amendment to the Tax Law which provided tax exemptions for culturalsponsorship (1990) was practically rescinded under austerity economic policies in 1997. In 2007,however, legislation was introduced to offer significant tax incentives for arts sponsorship; a central

bureau is to be set up, firstly to certify that a given sponsorship initiative is indeed for a bona fide culturalcause, and, secondly, to produce a list of priority projects in arts and heritage for which sponsorship willbe sought.


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Inheritance tax on art collections can be paid in kind, a measure effectively equal to a public purchase of art programme. This measure helps to ease the burden of people who would have to face a heavy financialburden if they came to inherit an important collection.

The income derived by writers and artists from their creative work is VAT exempt.

Greece/ 5.1 General legislation5.1.6 Labour laws

See chapter 5.1.4 .


Hungary/ 5.1 General legislation


Hungary has moved away from the socialist (communist) era when nearly all cultural actors were eithercivil employees or members of the monolithic artistic associations enjoying benefits comparable tosalaried persons. The most difficult task has been to transform the system of health care and pension plansof the so-called "Art Fund", inherited from the communist period, to a new insurance system. The state

guarantees the payment of old age support (de facto pension) to those artists and writers who had beenpaying members of the Art Fund before it was transformed into the Hungarian Public Foundation forCreative Art ( Magyar Alkotm " vszeti Kzalaptvny, MAK ) in 1992. The budget for 2012 of the Ministryin charge of culture contained a subsidy of HUF 1 350 million (ca. 4.5 million EUR, see also chapter8.1.2 ) for these pensions. Along with other quangos this body was dissolved and, from 1 May 2011, itspension-related tasks were delegated to the Central Administration of National Pension Insurance(Orszgos Nyugdjbiztostsi F # igazgatsg) according to Government Decree 52/2011. (III.31) .

It is estimated that over 75% of actors, dancers, musicians, arts organisers, technicians, designers andother cultural operators working for a variety of clients are self employed. Many self-employed peopleremained on the margins of the social security frameworks because they had been coerced into theposition of quasi entrepreneurs instead of the more secure employee status, so that the employer (often apublic institution like a theatre or a museum) could save on the social insurance fees; another reason wasthat self-employed people tended to pay social insurance after the minimum monthly wage only upon theirown choice. To counteract this problem, a few years ago the government started a campaign of re-integration of these "false entrepreneurs" into employment, and passed measures to make paying socialinsurance fees more attractive. This issue was behind the introduction of EKHO in 2005, a regime of simplified contributions to common charges (literally "public burden").

In the framework of EKHO, more favourable conditions and simplified procedures were offered to a listof professions, typically in the cultural sector. A condition of this status is that the annual income of the

person remains below HUF 25 million (about EUR 100 000). The EKHO Law ( Act CXX/2005 ) states thatthe minimum mandatory tax base for social security contribution payments is the minimum wage, whilethe rest of the citizen's income should be taxed according to the rules of EKHO. This simplified way of
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paying social security fees is open to employees and self-employed people as well, including pensioners.

Independents are not able to claim unemployment benefit. Sickness benefit may be covered by paying intoa private insurance policy. Most independents in the cultural sector pay into a private pension fund to topup the state pension.


Artists ".


5.1.5 Tax laws

There were two income tax rates for individuals until 2011: 18% and 36%, the latter operating from about6 500 EUR per year. This was replaced with a 16% single rate, introduced gradually from 2011. Familytaxation was also introduced to provide extra incentives to families having at least one child. Familieswith three children living on the average salary are exempt from personal income tax.

Social security payments are usually calculated at 27 % above the gross salary and the 16% personalincome tax is due to be paid on the super gross salary including social security costs. By nature of singlerate taxation, those with higher legal income benefit most.

State prizes, awards and fellowships are tax exempt; artists may claim material expenses on their incometax. Also, the tax base of authors and other creative artists may be reduced by 50% of the incomegenerated by copyright or other royalty payments. On the other hand, from 2007 the tax allowance on (upto about 200 EUR per year) on such revenue was cancelled: this had been a special allowance for thecreative class since the 1980s. From 2011, company income tax is 10% for profitable companies below

the 500 million HUF tax base (over 500 million the tax is 16%), with an additional 10% tax on thedividend. The so-called Non-Profit Act (CLVI/1997) defines the operational conditions of third sectororganisations and foundations. It includes tax incentives to facilitate the involvement of private support insupporting public goals.

By adhering to specific conditions, almost all non-governmental organisations qualify as Public BenefitOrganisations (PBO), with a smaller number qualifying as Outstanding Public Benefit Organisations(OPBO). Businesses companies and individual entrepreneurs can deduct 100% of the value of donations given to PBOs from their tax base, 150% if the beneficiary is an OPBO, and in the case of multi-annual pledges, this rate is 170%. 30% of donations for charitable purposes can be deducted alsofrom personal taxes. Each of these regimes has an annual ceiling, e.g. tax-exempt donations cannot exceed20% of a company's tax base in a year.

In spite of these regulations, philanthropic support to cultural organisations is not particularly widespread,and the little that takes place is barely acknowledged: the prevailing mood in the cultural sector is that of dissatisfaction. Certainly, most of these tax benefits affect other sectors (social and health care, educationetc.), and the bureaucratic regulations attached render donation complicated both for the donator andreceiver. Greater attention and expectations are linked to sponsorship, where tax exemption is difficult toconceive: the entire amount can be deduced from the tax base as marketing expenses anyway.

Tax legislation has greater significance with investments. In this respect, the Law on Motion Pictures (Act

II/2004 or Film Law) stands out, offering a 20% tax break on film making. The tax credit attracted theshooting of international productions and also provided incentives to some local projects. It has alsocreated a favourable environment for investment in studios, the largest of which is the Alexander Korda
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Studios at Etyek. After negotiation with the European Commission several of the criteria for publicsupport were defined more strictly (with the cultural principle reinforced), and the limits of state subsidieshave been set till 2013. On the whole, the main principles of the Film Law were found to be compatiblewith EU regulations.

With the Performing Arts Act (see chapter 5.3.2 ) a similar tax credit arrangement was introduced fortheatres and orchestras to the amount of 80% of the box office income each year. This became an

important source of revenue for performing arts organisations. (Source:http://www.eloadomuveszetiiroda.hu ). The fact that the regime was extended to donations to sports as of 2012 created concerns: how much would be left for culture at a time when profits of corporations aredwindling anyway? Nevertheless the amount grew to 11.6 billion HUF, divided between 150organisations. (For comparison: the grants of the National Cultural Fund amounted to 9.8 billion HUF.)

In 2003, a significant innovation in the fiscal system radically simplified the administration and taxationof small enterprises (called EVA: simplified enterprise tax), which is beneficial for many self-employedartists and cultural operators.

Under EVA, small businesses are taxed at a flat rate of 37% from 2012. This eliminates any other incometax or levy. No record is required on business expenditure which negates the need for the collection,storing and book-keeping of bills and accounts. On the other hand, EVA subjects must add VAT to theirinvoices which they cannot reclaim. Partly, the large success of EVA led to a next step, the introduction of EKHO, a regime of simplified contributions to common charges (literally "public burden") - seechapter 5.1.4 .

There is one more speciality in the Hungarian tax system Act CXXVI/1996 on "1%" has evoked greatattention outside the country as well. When taxpayers submit their annual tax returns, they can allocate1% of their income tax to a non-governmental organisation of their choice by indicating its taxidentification number (also another 1% to a registered church, if they so wish). According to the data

disclosed by the tax authorities, 49% of taxpayers channelled 13.1 billion HUF from the tax on their2012 income to 31 101 organisations. The full list of recipients is available on the website of the taxauthority. It is next to impossible, however, to identify the share of culture from the spreadsheet of 31thousand lines. Names of the organisations do not always provide clues about their profile. Here is anexception from the first page of the list, for sake of illustration: the Bartk Chamber Choir Foundation inthe city of Szolnok received HUF 159 000 (about EUR 530) from 39 anonymous donors.

The general value added tax (VAT, in Hungarian fa ) rate of 25% was raised to 27% with effect from2012, which affects music recordings, performing arts (including theatre tickets), film making, videolending, cinema, etc.; whereas a rate of 5% operates for books, including textbooks, periodicals including

newspapers, as well as licensed handicraft products. VAT registration is obligatory for undertakings,unless an individual tax exemption is granted, for those with an annual turnover under five million HUF(about EUR 16 700 ).


5.1.6 Labour laws

Artists and other cultural actors can work in five forms: as civil employees, general employees, individualentrepreneurs (sole traders), corporate entrepreneurs, as well as freelance workers. The minimum monthly

wage from January 2013 is HUF 98 000 (about EUR 327). Gross average earning is 2.3 times this amount.

Social partnership functions relatively effectively on the national level and on a large scale, e.g. between
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the government and civil employees - whereby they come to an agreement on improvements in workingarrangements including productivity and salary increases. It is less so, or even non-existent, in respectivecultural sub-sectors.

Labour conditions of civil servants and civil employees are regulated by the acts on civil service and onpublic finances. They contain the detailed schedules and criteria of salaries and wages with many directreferences to cultural and artistic jobs. These are updated each year, in which the trade unions of the

respective cultural sectors take an active part. As was described in chapter 5.1.5 , until recently aconsiderable number of cultural workers have acted in the framework of a "betti trsasg" (Bt), thesimplest form of business companies or partnerships, usually with family members as quasi businesspartners. A "Bt" is also used by employees receiving a regular wage who do occasional freelance work. Ina number of public cultural institutions a two-tier salary system operates with some artists on full timecontracts, while others are self-employed.

The provisions in the pensions system permit performers to retire early, e.g. dancers and some otherperforming artists under certain circumstances.

There are no specific provisions concerning the involvement of volunteers that are relevant to culture. Act LXXXVIII/2005 provides the necessary legal environment and protection for public voluntary work.


Ireland/ 5.1 General legislation


There are no specific social security frameworks for artists in Ireland outside of the general social securityregime. Artists registered as self-employed can apply for Jobseekers' Allowance (rate in 2011: EUR188.00 per week for a single person) if their income falls below the current level of the social welfarebenefit as determined by a means test, and as long as they are available for and actively seeking work.This poses difficulties for artists who may be urged to take up non-artistic work. In 2010 the Arts Council,with the Arts Council of Northern Ireland, published The Living and Working Conditions of Artists in theRepublic of Ireland and Northern Ireland. Of the Republic of Ireland artists who received unemploymentpayments in the three years prior to the study, two in five said they experienced difficulties in receiving

payments because of their status as an artist. The publication by the Arts Council, in 2006, of a report onThe Socio-Economic Conditions of Theatre Practitioners in Ireland provides some data to support betterrecognition of interpretative artists in the Social Welfare system. This study found that 50% of thoseworking in the theatre earn less than EUR 7 200 per annum, have to manage on multiple jobs to surviveand average just 20 weeks work per year in their specialist area. The full text is available for downloadfrom: http://www.artscouncil.ie/library/downloads/theatre_socio_study.pdf .


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5.1.5 Tax laws

Though Ireland does not have general legislation aimed at stimulating arts sponsorship or investment,there is a range of tax relief that works to this end. Section 481 of the Taxes Consolidation Act 1997allows investors to claim tax relief on share subscriptions in qualifying film production companies. Theamount of relief that can be claimed is subject to annual limits. An amendment, as a result of the 2008Finance Acts , has increased the amounts of money that may be raised under the scheme from EUR 35

million to EUR 50 million, the individual and investor cap and the percentage tax relief (now at 100%).This has improved Ireland's competitive position as a location for film and TV production. By 2009, 471projects had benefited from this provision. Thirty-four projects were supported in 2007.

Section 1 003 of the Taxes Consolidation Act, 1997 enables persons who donate important nationalheritage items to the Irish National Collections to credit the value of these donations against theirliabilities for certain taxes.

In addition, tax breaks are allowed on:

business sponsorship of an artist or arts organisation in exchange for promotion of the business;donations to eligible institutions;expenditure on buildings and gardens;gifts to the Exchequer; andprovision of certain goods and services such as printing of programmes or tickets, offering airlinetickets, etc.

However, the 21% VAT charge (increased in 2009 to 21.5%) since 2003 on visits by foreign performingartists to Ireland continues to be burdensome for festivals and other organisations, as well as discouragingNorth / South exchange, since the same tax does not apply in the UK.

Generally the usual VAT rate of 21.5% is reduced to 12.5% in respect of sales of art works and admissionto artistic and cultural exhibitions. Books and the promotion of or admission to live theatricalperformances are VAT-exempt and exhibition publications are subject to zero-VAT under certainconditions.

Artists in Ireland benefit from a specific tax provision. There is, however, no overall status-of-the-artistlegislation.

Tax-exempt status for self-employed creative artists resident in Ireland was introduced in the 1969Finance Act . A list of beneficiaries since April 2002 is provided athttp://www.revenue.ie/en/tax/it/leaflets/artists-exemption-section-195-1997-act.html . This provision wasgenerally perceived as an imaginative piece of legislation, which has been laudedinternationally. It allowsexemption from tax on income from sales or copyright fees in respect of original and creative works of cultural or artistic merit, as well as on Arts Council bursaries, payments of annuities under the Aosdnascheme and foreign earnings. In 2011, the provision was revised with a limit of exemption on the firstEUR 40 000 of profits or gains. This is subject to the Universal Social Charge and may be subject to PayRelated Social Insurance, VAT and High Earners' Restriction.

Employed artists are subject to the same tax regime as all Irish citizens. For non-resident artists the normalwithholding rate is 26%. This is reduced to 10% or to zero in the case of those countries (over 30 of them)with which Ireland has Double Taxation Agreements.

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5.1.6 Labour laws

Artists in Ireland are subject to the same labour laws as all Irish citizens.


Italy/ 5.1 General legislation


Artists and others employed in the cultural sector, like any other Italian citizen, are just covered by thebasic health insurance provided for by the National Health System.

The only exception to this rule, since fascist time, are the performing artists, as well as those employed intheatres and in the audio-visual industry (radio, television, cinema, sound recording). They enjoy morefavourable social security coverage through ENPALS / Ente Nazionale Previdenza e Assistenza Lavoratoridello Spettacolo , created in 1934, which is able to cater for the often intermittent working situation of thisspecial category of employed. In recent years, though, a strong boost towards harmonisation of all thecountry's social frameworks has weakened this category's once privileged situation. An agreement wassigned in 2010 by Enpals and SIAE (the copyright association), in order to control and contain thefrequent evasion of social security contributions.

On the other hand, unlike performing artists, visual artists and writers have always enjoyed a purely"virtual" social insurance framework, as ENAPS (Ente Nazionale Artisti, Pittori e Scultori) the ad hoc

public institute has traditionally been too underfinanced to provide any kind of social protection, and haslimited its activity to the organisation of occasional prizes or artistic and literary events. In this respect,there are, presently, some prospects of change: with the intention of rationalising public expenditurethrough the suppression of public institutes, ENAPS has been, in fact, incorporated in ENPALS by Leg.

Decree 78/2010 .

While the process of incorporation is still underway, an additional rationalisation was brought about by Law n. 214/2011 , having further ruled to suppress ENPALS by merging it to make budget saving with INPS / Istituto Nazionale Previdenza Sociale , Italy's general social security organisation.



5.1.5 Tax laws

Legislation to foster support for the cultural sector from private donorswas introduced in the 1980s, when Law 582/82 allowed the total deduction from taxable income of all donations and sponsorship given byindividuals and corporations, as well as of expenditures for the restoration of privately owned built

heritage: which led to a "boom" in capital investments in the restoration of palaces, castles, and historicalgardens. The amount of such incentives was, however, progressively and significantly reduced bysubsequent budget laws, in particular by the Budget Law for 1992 , when the tax deductions (more


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favourable for citizens in the higher tax brackets) were transformed into tax credits, within the limit of 19% of the amount of the donation, equal for all citizens, non-profit organisations and companies.

After nearly twenty years, private donations, if earmarked to a list of cultural institutions drawn up by theMinistry of the Heritage, became again totally tax deductible albeit only for companies thanks to Law342/2000 : however, the law establishes a ceiling of 52 million EUR for the potential loss of revenue forthe state, which cannot be exceeded. Bureaucratic strings, though, may have affected the law's

implementation, which yielded in 2001 much less than expected: only 16 million EUR. The amount of such donations increased in the following years, reaching a peak in 2008, and subsequently decreasing asa result of the economic crisis (see chapter 6.3 ). The cuts affecting donations by private individuals andnon-profit organisations in the same years have been even more drastic.

The next, quite bipartisan step, envisaged by all the recent Ministers since the 2000s, has been aimed atincreasing the amount of private contributions for culture by making tax incentives once again moreappealing for individuals and non-profit organisations as well. In particular, it is estimated that byfollowing the US model, where around 75% of private donations are given by individuals a higher taxrelief could significantly increase the support of private individuals to the cultural field. However, an

agreement between the Ministry of the Heritage and the Ministry for the Economy historically opposingsuch measures has so far been out of reach for any kind of political majority.

It should be added that substantial fiscal incentives in the form of tax credits and tax shelters are, atleast temporary, in force for investments in the cinema industry (see chapter 5.3.6 ).

Finally, as shown in Table 4, the VAT rate on cultural goods is generally lower than the usual rate,notably for books and newspapers. However, for the category of recorded music, VHS and DVDs, themuch needed VAT reduction, to foster the week demand by Italian consumers, has not been possible forthe time being, as an agreement at EU level could not be found, yet.

Table 4: VAT rate of cultural goods and activities, 2010

Cultural goods and activities VATCinema 10%Theatre 10%Opera 10%Dance 10%Concerts 10%Museums and exhibitions 10%Books 4%Newspapers 4%Recorded music and audiovisual 21%

Source: elaboration by Associazione per l'Economia della Cultura.


5.1.6 Labour laws

See chapter 5.1.4 .

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Artists ".

Monaco/ 5.1 General legislation


Those officially employed in the cultural sector are covered by the general laws in force in thePrincipality.

A Law has been promulgated to support artists ( n1.360 on July 4th, 2009 ) who can, on some conditions,benefit by social security as independent professional artists.



5.1.5 Tax laws

Tax reductions relating to individual sponsorship are not relevant as there is no direct taxation of individuals in the Principality.

Sovereign Edict N 9 267 of 14th October 1988 authorises tax deductions on sponsorship from corporatetaxable income.


5.1.6 Labour laws

There are no specific labour laws for the cultural sector. This area is governed by the rules of commonlaw.


Netherlands/ 5.1 General legislation


General laws (including social security legislation) related to independent entrepreneurs also apply toartists. In the Dutch Unemployment Insurance Act [Werkeloosheidswet ], an exception is made forfreelance artists. Acceptance criteria (based on the period of unemployment) are less severe for freelanceartists in comparison with other professions.
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Specific regulations are indicated in the Work and Income Provisions for Artists Act [WWIK, Wet Werk eninkomen kunstenaars , 2005]. This Act provides artists temporarily - for a maximum of 48 months, spreadover a maximum period of 10 years - with a basic income (70% of the guaranteed minimum income).However, artists may earn up to 125% of the guaranteed minimum income by doing extra work, have no

job seeking obligations and have free access to the training and individual counselling services of Artists&Cultural Entrepreneurship [ Kunstenaars&CO , see also chapter 8.1). The WWIK is intended fornew artists, building up a profitable practice, and for established artists with a temporary decrease inincome. Artists who want to make use of the WWIK, have to prove they received a higher arts educationor have run a professional practice. Artists&Cultural Entrepreneurship has the legal obligation to executethese professional searches.

In addition to legislation, the government has many funds that provide support to the arts. For example,the Dutch Foundation for Literature [ Fonds voor de Letteren ] encourages the production of Dutchliterature by offering scholarships to literary writers and translators, extra payments above their normalsalary, start-up grants and travelling scholarships. The Netherlands Fund for the Performing Arts+[ Nederlands Fonds voor Podiumkunsten+ , 2007] (see chapter 8.1.2 ) provides the same kind of support.



5.1.5 Tax laws

Donations and inheritances

Businesses as well as private individuals can profit from tax exemption regulations. This applies both to

sponsoring activities and donations. In 2005, the State Secretary of Financial Affairs has decided to reducedonation taxes to zero.

Following changes to articles of the Tax Law (1 January 2006) charitable institutions are no longercharged taxes when they receive money from inheritance funds. In order to qualify for the exemption,these institutions have to demonstrate in their statute and a description of daily activities, that they notonly theoretically, but also practically serve "good causes". To compensate the losses in state income as aresult of this new regulation, it was decided to raise the betting tax [ Kansspelbelasting , Ministry of Justice] from 25% to 29%.

Investments

Investments in arts and cultural projects, which generate profits up to 54 233 euros, are exempted fromcharges on return capital. Besides, there is an exemption for labour income of 1.3% of the exempted sum.

Monuments

Expenses for monumental buildings and gardens are deductible if they are listed on the MonumentsRegister [ Monumentenregister ] and the expenses do not exceed 0.8% of the value of the monumentalbuilding, up to a maximum of 125 000 euros.

Artists Arrangement

The Tax Plan 2007 [ Belastingplan 2007 ] contained amendments to the Artists Arrangement
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[ Artiestenregeling ], applicable for performing artists: wage taxes for foreign artists are no longer deductedif they are coming from a country the Netherlands have an agreement with preventing double taxdeduction, or from Aruba or the Netherlands Antilles. Dutch artists in paid employment are also excludedfrom the Artists' Arrangement; all other - independent - performing artists are included, from pop / rockbands to symphony orchestras. DJ's, VJ's and MC's (Masters of Ceremony at a dance event) are alsoconsidered to be performing artists.

Volunteers

Volunteers may earn a tax free extra income of 150 euros a month maximum, up to 1 500 euros maximuma year. Up to this amount, they do not need to account for their expenses. Higher compensation is possibleif the organisation reports the compensation to the tax inspector, on a yearly basis.

VAT

The system of VAT is divided into 3 rates: a high rate of 19%, a low rate of 6% and a 0% rate. Europeanlegislation allows the member states to charge the low VAT rate on tickets for shows, theatres, circuses,funfairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events andvenues. In 1993, the Netherlands lowered the VAT rate on cinema tickets, admission tickets to publicmuseums (and on the sale of catalogues, photographs and photocopies produced by these museums),theatres and concert halls. Artists who work on commission, such as text writers, composers of advertising

jingles, architects and designers, all charge the higher VAT rate.

Tax authorities consider that certain forms of subsidy are subject to VAT. However, the Ministry of Finance determined that subsidies arising from the Dutch Cultural Projects Funding Decree[ Bekostigingsbesluit cultuuruitingen] would not be subject to VAT. This decree covers all subsidiesgranted by the Ministry of Education, Culture and Science on the grounds of the Cultural Policy Act (Special Purpose Funding) [ Wet op het specifiek cultuurbeleid , 1993], including subsidies furnished by the

cultural Funds set up by this Ministry.


5.1.6 Labour laws

Collective bargaining agreements

There are many collective bargaining agreements [ collective arbeidsovereenkomst - CAO ] in theperforming arts and more generally in the cultural sector. CAOs are labour-agreements between employersand employees. This means that a CAO only applies to employees who are working with an employer.When this is not the c

Documents

Estatuto Artistas Europa