Abstract
Artists are key players in the creative industries who create and perform the work. Many of them are in an economically vulnerable situation and some countries prefer to have more artists than the market would otherwise allow. This desire leads those countries to enact financial support measures, such as tax incentives. In addition, goals such as preserving national culture and stimulating the economic impact of artists may also be reasons for these tax incentives. This chapter examines several examples of tax incentives, including the value-added tax exemption and reduced rate in the EU, the Theatre Tax Relief and Orchestra Tax Relief in the UK , the Theater Tax Benefit in the USA , the option for artists to pay taxes with artwork in Mexico , and the income tax exemption for authors, composers, painters and sculptors in Ireland . In the conclusion, these tax incentives are compared with the criteria for fairness , effectiveness, complexity and visibility outlined in Chap. 4 and for state aid in Chap. 5.
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- 1.
Art. 167 TFEU.
- 2.
Art. 107(3)(d) TFEU.
- 3.
Art. 113 TFEU.
- 4.
Art. 97 EU Directive 2006/112/EC.
- 5.
Art. 99 EU Directive 2006/112/EC.
- 6.
Art. 132(n) EU Directive 2006/112/EC.
- 7.
ECJ 21 March 2002, C-174/00 (Kennemer Golfclub).
- 8.
ECJ 26 May 2005, C-498/03 (Kingcrest).
- 9.
ECJ 21 January 2016, C-225/14 (Les Jardins de Jouvence).
- 10.
ECJ 17 October 1991, C-35/90 (Commission/Spain) and ECJ 7 March 2002, C-169/00 (Commission/France).
- 11.
ECJ 3 April 2003, C-144/00 (Matthias Hoffman) and ECJ 21 March 2002, C-267/00 (Zoological Society of London).
- 12.
ECJ 3 May 2001, C-481/98, ECJ 8 May 2003, C-384/01, ECJ 23 October 2003, C-109/02 and ECJ 6 May 2010, C-094/09 (Commission/France). The ECJ decided that comparable goods and services that are competing directly should have the same VAT rate to avoid unfair competition.
- 13.
Art. 103 of EU Directive 2006/112/EC.
- 14.
Annex III to EU Directive 2006/112/EC.
- 15.
Search for “VAT rates”, “EU”, “2016” (http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_en.pdf).
- 16.
Part 15C CTA.
- 17.
HMRC data.
- 18.
HMRC published a Theatre Tax Relief Manual on 12 December 2015 with detailed information on definitions, conditions, exclusions, application and appeal procedures.
- 19.
Protecting Americans From Tax Hikes Act of 2015.
- 20.
Section 181 IRC.
- 21.
Section 199 IRC.
- 22.
Section 195 TCA 1997.
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Molenaar, D. (2017). Tax Incentives for Artists. In: Hemels, S., Goto, K. (eds) Tax Incentives for the Creative Industries. Creative Economy. Springer, Singapore. https://doi.org/10.1007/978-981-287-832-8_11
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