Defining artists for tax and benefit purposes
Description
D'Art Report:
Defining Artists for Tax and Benefit Purposes >
D’Art Topics in Arts Policy no.1, March 2002
IFACCA and the National Association for the Visual Arts (NAVA), Australia
Most countries need some way of determining whether or not a person is a ‘professional’ artist for tax and benefit purposes. There is, however, little consistency in approach to definition. Some countries even have different definitions within their own jurisdictions. Moreover, there appears to be no comprehensive analysis of the impacts of different definitions. This D'Art report details five common approaches to definition:
- Definition through membership: A person is defined as an artist through membership of a recognised artist association
- Definition by committee: a committee of experts or artists’ peers determines artistic status. The Netherlands’ WIK scheme and Canada’s Status of the Artist Act use this approach.
- Definition by authority: The taxation authority determines artistic status. The tax exemption scheme in Ireland uses this approach.
- Definition by association with artistic output: An artist is someone who produces art. This approach is taken in many jurisdictions, but merely replaces the question of ‘What is an artist?’ with ‘What is art?’
- Definition by nature of arts activity: The artist is deemed professional if the arts work is undertaken in a businesslike manner. Tax authorities in many countries, including Canada, the United States and Australia use this approach.
The report aims to provide background and useful references for anyone wishing to pursue the issue in more detail.
Publications
D'Art Report: Defining Artists for Tax and Benefit Purposes
A research report on how governments approach the difficult task of defining who is an artist for the purposes of tax, benefit and other policies and programs. more >
Studies of Artists: An Annotated Directory
An annotated directory of studies of arts and artists. more >
The Status of the Artist: An Integrated Analysis of International Identification Methods
The Status of the Artist: An Integrated Analysis of International Identification Methods. more >
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