Mazars Guide to Taxing the Arts
Budget 2017 saw an additional €1m committed to the promotion of Irish arts globally. Below we touch on a few tax measures which exist to assist artists, writers and actors excel in their creative field.
What expenses can be deducted from your salary income?
Did you know that you may be entitled to claim a flat rate expense if you are an employee? A flat rate expense deduction of €750 for freelance actors should be claimed through the PAYE system. The allowance is deemed to cover expenditure incurred on makeup, costumes etc.
Also if you have paid any fees to your agent(s) this expense should be allowable as a deduction on receipt of proof of payment.
What is Artists exemption and how do I get it?
The “artists exemption” was introduced a number of years ago with the intention of assisting developing artists. The exemption provides that the first €50,000 per annum of certain profits or gains earned by specific artists is exempt from income tax.
To qualify for the exemption, a work should be original and creative, as well as being 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:
- A book or other writing
- A play
- A musical composition
- A painting or other like picture
- A sculpture
The claim process involves submitting an artist exemption application form to the Revenue Commissioners along with samples of the work in question and any appropriate supporting documentation, such as proof that the work has actually been published or produced.
Is my income taxable in Ireland?
If you are resident, ordinarily resident and domiciled in Ireland, you are liable to Irish tax on your worldwide income and gains for that tax year. However if you are resident and ordinarily resident in Ireland, but not domiciled in Ireland, you are liable to tax on Irish source income and gains along with foreign income and gains if remitted to Ireland.
Do you need to consider foreign tax issues?
You may be required to complete frequent touring and promotional work overseas and this may result in potential exposure to foreign tax. Did you know that Mazars is part of a large Praxity Alliance which means that we can put you in touch with tax experts in other tax jurisdictions.
Services Mazars can offer you
- Management of day-to-day financial affairs
- Accounts preparation
- Personal tax planning
- Royalty audits
- Tax compliance
- Remuneration strategies
- Retirement and pension planning
- Tax advice including;
- Entertainment income streams for performing artists,
- Live performance income,
- Considering tax residence planning for foreign earned income
For further information and a confidential conversation about how Mazars can help please contact Alan Murray on +353 1 449 6480 or email amurray@mazars.ie
