Artists' relief retained but capped (Thursday 8 December 2005)
Expect mixed feelings about the news that the Republic's tax exemption for income from artistic activity is to be capped at 250,000 euro. There will be relief that the scheme was not scrapped altogether, but concern that even this generous cap does not take into account the cyclical nature of artists' incomes, where an artist may have no income for many years. The retention-with-cap was part of yesterday's government budget for 2006.
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Do
you have an opinion on this article? If so, please click here for our comments form.
| Responses so far |
| Comment 1 |
Does this mean that high-earning artists are going to be
exposed to 68% tax? (42% income tax, 21% VAT, 5% PRSI)
|
| Comment 2 |
I thought Minister John O'Donoghue was right when he said
that there was no point in taxing high earners among
artists, as they get most of their income from abroad and
would simply leave it there.
|
| Comment 3 |
The artists tax exemption scheme has not been capped.
There is a new tax measure which applies to all high
earners, no matter what their ocupation which ensures they
must pay some tax.
The cap is not set at 250,000. The cap is not in fact a set
figure rather it is set at a percentage of total income.
The vast majority of high earners are in the music industry,
research has shown that most of these individuals have
already been paying tax on 2 thirds of their total income.
That is income derived from non creative earnings.
Such individuals will not be affected in any way by these
new measures.
Those who have high incomes but who only have creative
income will be worse off. However, there will be very few
visual artists falling into the high earning bracket of
250,000 considering that we are talking about taxable
income ie profit after expenses and that artists generally
receive 50percent or less of the actual sale price of their
work.
Regarding VAT and PRSI, artists have always been liable to
both of these taxes so this is nothing new.
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