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

News

Arts Council gets significant ‘return on investment’ in nonprofit arts groups

Kentucky Arts Council , 05 December 2011, USA

The Kentucky Arts Council’s investment of $1.7 million in operational support for nonprofit arts organizations in Kentucky produced significant returns in tax revenues, jobs, education services and tourism development, according to its first Public Value Report. more >

Creative industries – winners from the Austrian tax reform

Office for Cultural Policy and Economy, 13 March 2009, Austria

According to creative wirtschaft austria (cwa), the special interest organisation of the Austrian creative industries, the country’s 30.000 creative businesses will benefit from the new fiscal reform coming into effect in April and bringing tax relief to all jobholders with retroactive effect from January 1st on. more >

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