Estatuto Artistas Europa

COMPENDIUM/PRINTVIEW
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Austria/ 5.1 General legislation

5.1.4 Social security frameworks For a long time there were no specific regulations to ensure that social security provisions for artists reached across all professional fields. Only artists in the music and visual arts sectors were covered by the obligatory social security provisions. All other artists were free to enrol in a social security insurance plan of their choice. Several funds were created to help artists pay part of their (non-obligatory) social security insurance, the Knstlerhilfe Fonds for visual artists, for example (see chapter 8.1.2). The Employment and Social Security Law Amendment Act (1997)produced an initial change: up until 1997, artists had widely differing social security coverage, depending on their professional status, nature of labour relations and field of work. This amendment generally regulated labour conditions and required contracts for all freelance workers in the form of either a Werkvertrag (contract for work) - also called the "new" self-employed, a term that describes one person enterprises without a trade licence - or a freier Dienstvertrag (self-employed contract of service), depending on the nature of the work (people who work under the freier Dienstvertrag have more social protection than the self employed, but less than the employed). Following this amendment, anyone earning over 6 453 EUR per year was forced to pay social security insurance. Artists were exempt from this Law until the end of 2000 and were not obliged to pay social security insurance. Those who chose to pay the insurance could apply to the above mentioned funds, like Knstlerhilfe Fonds (see chapter 8.1.2) to help cover the costs of their social security fees. Artists have been comparatively successful in creating, improving and consolidating lobbies for themselves. Authors and translators in particular, as well as cultural initiatives, and to some extent independent theatre groups, cinematographers and media artists have been able to create associations and interest groups to represent them in public, to lobby for more funds and commissions, to fight for legal and social improvements and for the maintenance of artistic freedom. Among their major achievements has been an improvement in the flow of information on market opportunities and mutual communication among artists. As to their social security status, several reforms and improvements (copyright, social security scheme for artists and other social benefits) have been achieved by umbrella organisations, interest groups and collecting societies. 2001 the Law on Social Security for Artists (Knstler-Sozialversicherungsfondsgesetz) came into force (since 2011 it has been called the Artist's Social-Security Insurance Structure Act) and freelance artists are treated the same as other self-employed professionals, which means they must pay their statutory social
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security insurance if they earn more than 6 453 EUR per annum. In many cases, the new Law created a situation whereby artists end up making two different types of social insurance payments: statutory insurance for freelance work and any other social security insurance payments which result from other part-time employment contracts they may have. As many freelance artists are employed both part-time and do freelance work, the contribution to the social security system is relatively high compared to total income. There was a change here in 2009, and indeed one that applies for those cases in which additional to self-employment there is a further income: if this income exceeds the threshold of EUR 4 641 (2013, the amount is being adopted annualy) it will also be subject to the obligatory social insurance payments. The Law set up a Social Security Insurance Fund for Artists (Knstlersozialversicherungs-Fonds) which grants artists a pension supplement of up to EUR 130 per month, if their annual income from artistic activity is at least EUR 4 641 (2013) and the sum of all their income does not exceed EUR 23 208 (2013) annually. This amount increases for each child. The pension supplement is based on self-evaluation of future income. If either of the above limits is not achieved, or is exceeded, the supplement has to be paid back. Those artists entitled to receive a grant must meet certain requirements such as being specifically trained (art-university graduates, for example). Others are selected by a specific board (commission). Each year about 4 500 to 5 000 artists receive this pension supplement; about 20% do not reach the minimum level. The new Social Security Insurance System was widely criticised by artists and their professional associations, mainly because of the exclusion of artists on very low incomes. Further demands were to secure obligatory contributions to the fund by the federal government and a supplement not only for pensions but also for health and accident insurance. The reform of the artists' social insurance is among the cultural policy priorities of the new government. Based on the study "On the social situation of artists in Austria", which the Ministry for Education, the Arts and Culture commissioned in 2008, and on a working conference following publication in 2009, an inter-ministerial working group has drafted further amendments to the law and proposed measures to improve the situation of artists. Two results have so far been presented: on the one hand, a service centre for artists that offers advice and support for social-security issues has been established. However, this does not provide a "social security under one roof" covering both freelance and directly employed, artistic and non-artistic activities, as called for by the interest-group representatives. The second change concerns the opportunity from 2011 for artists to register their self-employed activity and the resulting obligatory insurance as being idle, so that they have access to benefits from unemployment insurance. The interest-group representatives perceive these measures as a necessary first step to improve the social situation of artists in Austria. However, there is no sufficient concrete progress, and additional claims are drafted under: http://www.kulturrat.at . See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws In Austria, only an estimated 1.94% of the overall cultural funding is supplied by the private sector despite the existence of a "Sponsors' Ordinance" regulation adopted by the Federal Ministry of Finance in 1987. Under this regulation, an enterprise / entrepreneur is granted a tax break on expenses for sponsoring cultural events. The ordinance lists various criteria that must be fulfilled in order to qualify for the tax
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break (sponsoring must, for example, be in the form of an advertisement). This regulation only allows for a very small amount of expenditure to be tax deductible; however, plans for the introduction of new legislation, which has long been discussed, have been announced. On the basis of an amendment to the Federal Arts Promotion Act (1988) in 1997, certain public subsidies are tax free, retrospectively to 1991. These include: grants, prizes and supplements from the Austrian Film Institute for promoting the creation of film concepts and screenplays; income and assistance from public funds or from the funds of public or private foundations, as far as compensation for expenditure or expenses is concerned, or with the exception of private foundations for activities abroad. Income up to EUR 11 000 annually is tax free. Income from EUR 11 000 to EUR 25 000 is taxed at 36.50% and income over EUR 25 000 and up to EUR 60 000 is subject to 43.21% tax. Income above this is as before subject to a top rate of 50% tax. Owing to the progressive income tax tariff, it is most favourable if one earns roughly the same amount each year. For creative workers, however, it is normal for incomes to fluctuate greatly. For this reason, since 2000 they have been able to spread artistic income over three years: one third of the surplus of the current year is assigned to the current year and each of the two previous years. Since 2000, artists from abroad have been able to apply for the partial or full cancellation of tax liabilities in Austria that are in excess of tax liabilities in their country of origin if their establishment of residence serves to advance art in Austria and if there is public interest in their work. Since 2002 donations made to museums (to important country-wide private museums, as well as to federal museums) are tax deductible. There are two tax rates under the Austrian VAT Law (1994), one at 20% and a reduced rate at 10%. The reduced rate applies to turnover related to artistic activities, cinema, theatre and concert tickets, museums, botanical gardens or nature parks, as well as services by the Austrian Broadcasting Corporation (ORF) and cable TV companies, books magazines and dailies. There is 20% VAT on music CDs.

5.1.6 Labour laws Alongside the growing rate of unemployment, the structure of employment has changed considerably in recent years. For example, the number of people working under a freier Dienstvertrag (self-employed contract of service) has risen by more than 150% since 1997; in 2012 the figure was approximately 20 000 people. It is similar for people working under a Werkvertrag (contract for work) or "new" selfemployed: here the number almost quadrupled between 1998 and 2002, from 7 700 people to 30 300; at the end of 2008, there were 44 000. Generally, all freelancers fall outside the system providing entitlements and protective measures envisaged by the general Austrian Labour Law. Since January 2008, however, freier Dienstnehmer have had unemployment insurance. In the field of the performing arts, there is a specific labour law, the Actors' Law (Schauspielergesetz, 1922, amended 2011) regulating the working hours, holiday rights and bonuses for actors, which are different from the employee regulations. Formerly, actors were assumed to be employees but full employment with all the costs and obligations for employers (e.g. festival-organisers) is now often circumvented. New legal conditions to improve their situation is being created for actors, too in the course of findings and working results from the study "On the social situation of artists in Austria" and the study "Precarious freedoms: work in the free theatre field in Austria", ed. Sabine Kock, Vienna 2009. The interministerial working group, which since 2009 has been working on improvements for artists, has
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brought the "Actors' Act", last amended in 1922, up to date. Since January 2011, as the "Theatre Employment Act" (B-ARG), it covers all workers in a theatre company together and envisages adaptation to the Holiday and Working Hours Law. It has been criticised that the law only brings meaningful improvements for actors who are directly employed in the major theatres. As before, for short-term, changeable employment between direct employment and self-employment with intervals of unemployment or without income in the freelance theatre field, no legal security can be created. The fact that the new Law does not include film actors is also criticised, as it does not correspond to actors' professional reality. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
Belgium/ 5.1 General legislation

5.1.4 Social security frameworks In 2000, measures were taken to enable artists who receive unemployment benefits to practise their art more freely, which hitherto had been prohibited by law. In December 2002, the federal parliament ratified measures to improve the social security system for artists. On July 1st 2003, this regulation came into effect. The main points are: artists are treated either as employees or as self-employed for the purposes of social security. To stimulate salaried work for artists, employers are given a discount on their share of social security contributions to compensate for these additional costs; child and holiday allowances for artists which are covered by the employees' regulation will be paid by the federal government. This will simplify the payment of allowances caused by working for different employers; and those who infrequently hire artists (e.g. for an occasional show in a caf or for an individual commission) can apply to the "Social Bureau for Artists" to take care of the employer's share of administrative procedures. These bureaux, mostly interim offices, must be recognised by the regional authorities. On 1 July 2004, the additional "small fees scheme" came into effect. Under this scheme, artists can receive a small fee that is exempt from social security contributions. Since 1 January 2007, the "small fees scheme" is tax free. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws Tax regime for income on royalties On 30/07/2008 a tax regime for income generated from copyright and related rights was published in the Belgian law gazette. Individuals who receive income from the transfer (assignment or concession) of
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copyright and related rights, as well as legal and compulsory licenses provided for in the Copyright Act, will be taxed advantageously. The scheme is applied from January 1, 2008 (tax year 2009). VAT A new VAT system has been in force since 1993, which was the result of a harmonisation of the different systems in the European Union. The VAT system is divided into two rates: a high rate of 21%, and a low rate of 6%. The low rate applies to most cultural objects (magazines, books, original works of art, collector's objects) and services (tickets for productions, copyright). Belgian legislation allows for many cultural exemptions (Article 44, 2, 6-9, VAT Code) including: the hire (renting) of objects of a cultural nature, if these are made available on a non-profit basis; visits to museums, (natural) monuments, botanical gardens and zoos which are not exploited for profit; services by performing artists for organisers / companies provided by actors, leaders of orchestras, musicians and other artists; and the organisation of theatre, ballet or film productions, exhibitions, concerts or conferences by institutions recognised by the competent authorities, provided the income they gain from their activities is used exclusively to cover the costs incurred. Such exemptions mean that there is no right to deduct tax in advance. The exemption for performing artists providing services to organisers / companies was also extended to unions of performing artists such as theatre companies. However, on 1 April 1998, this tax exemption was limited to individual performing artists (Letter no. 13 of the Minister of Finance, dated 19/11/1997). Since then performances which are not given by individuals would become subject to tax at 6%. The scope and application of this new interpretation remains very unclear and local tax inspectors are sometimes confused regarding the allocation of VAT status to theatre companies applying on the basis of Letter no 13. On 24 October 2006 the matter was discussed in the Chamber Commission of Finance. The debate led to the conclusion that: since new legislation is not to be expected in due course, companies can choose the best suitable system. Income tax In some cross-border situations, the Belgium government is allowed to tax the income of non-residents who earn money by working in Belgium. However, this depends on co-operation agreements (double taxation laws) reached with the corresponding countries. For visiting artists, this system can lead to a deduction of company tax from the income which they earn for their performances in Belgium. This tax should be deducted by the Belgian organisers of the performances. Flemish Community The Law of 17 May 2004, regarding the change of Article 194b of 1992 on income tax, with regard to the tax shelter arrangement for the benefit of audiovisual production. French Community Law of 17 May 2004, regarding the change of Article 194b of 1992 on income tax with regard to the tax shelter arrangement for the benefit of audiovisual production. Tax shelter
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From January 2003 onwards, investors can enjoy a tax exemption for the amount they invest in Belgian audiovisual work. This amount may partly consist of loans.

5.1.6 Labour laws Labour laws are the responsibility of the Federal Government and are carried out by the Employment Minister (Federal Employment, Labour and Social Negotiations Government Service). Exemptions for the cultural sector are provided in legislation relating to night work and the protection of Sunday as a rest day. The social partners, represented by unions and employer federations, are deeply involved in the realisation of regulation in the labour sector. The joint committees (JC) include an equal amount of employer and employee organisation representatives, under the direction of an independent chairperson. JCs have been set up for all branches of industry with the aim of grouping companies with similar activities and to develop instructions adapted to labour conditions. The JC assignments consist mainly of concluding collective labour agreements, preventing or solving social disputes and advising on policy. In principle an employer does not freely choose which JC deals with its activities. This is determined on the basis of an employer's activity and the responsibility of each JC. The following JCs are important for the cultural sector: PC227 (audiovisual sector office workers); PC303 (film company employees including office workers); PC304 (employees including office workers of entertainment companies, incl. music and performing arts); and PC329 (employees including office workers in the socio-cultural sector). The collective labour agreements that are concluded in the JCs can be accessed at http://www.meta.fgov.be/. A collective labour agreement (CLA) is an agreement that determines individual and collective relations between employers and employees in companies or branches. When an employer is bound by a CLA, the resulting rights and obligations apply to all employees, regardless of whether they are members of the union(s) in question. The sectoral CLAs are mainly concluded in joint committees or sub-committees. They determine the jobs and corresponding wages for a sector and can include arrangements regarding flexibility. These agreements can be declared generally binding by the King of Belgium and an employer or employee cannot divert individually from this type of CLA. A major example is the Music CLA concluded in PC 304, which is generally declared binding so it applies to everyone who employs a musician, including for example a pianist who plays part-time in a hotel or restaurant. The Performing Arts CLA provides arrangements for flexible work in all companies and organisations subsidised by the Flemish Community. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
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Croatia/ 5.1 General legislation

5.1.4 Social security frameworks The legislator has acknowledged the special status of freelance artists in comparison with other workers. They have the right to retirement and disability insurance and to health insurance. Contributions are paid from the state budget (see also chapter 4.3). The Croatian Freelance Artists Association (HZSU) encourages and promotes creative work and public activity in culture and the arts, and it represents freelance artists' common interests, so as to help them achieve their goals and to protect their rights. A freelance artist becomes a member of the Association on the basis of his or her creative work and so can apply to have his or her contributions paid from the National Budget, as long as he or she meets the criteria laid down in the Regulations about the procedures and conditions for the recognition of the rights of artists to have their retirement, disability and medical insurance paid out of the national budget of the Republic of Croatia. Applications by the artists are considered by the Expert Commission, and decisions are subsequently confirmed by the Minister of Culture. When the Expert Commission has made a favourable decision, the Croatian Association of Freelance Artists registers the freelance artist with the Croatian Institute for Retirement Insurance and the Croatian Institute for Health Insurance according to an artist's place of residence. There are 30 arts associations which appoint their members to the expert commissions (list available at: http://www.hzsu.hr/links.html). With the changes in the by-laws on the rules and conditions for granting the right to independent artists to receive retirement and health insurance from the state budget in 2004, a more efficient system was put in place. If an independent artist earns, during a 3-year period, less than the average of a fully employed academic artist's salary, he / she is entitled to receive health and social security benefits paid from the state budget. Those who earn more than this amount will no longer be entitled to additional state support. According to available data from the Ministry (MK, 2007: 15), the number of independent artists has increased in the period 2003-2007; from 1263 to 1341. However, it can be said that the upward trend has diminished during the crisis period; according to online data from the Croatian Freelance Artists' Association (HZSU) in June 2010, there were 1 316 freelance artists registered, while in November 2012 the number lowered to 1 283 artists (the date of this unofficial online data was not listed), while in October 2013 there were 1 303 freelance artists listed on the HZSU website. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws Although legal incentives exist to encourage private support for culture, it can still be considered marginal compared to the funding provided by the public sector. The same is true for foundations and funds, despite the Law on Foundations and Funds that was passed in 1995, amended in 2001. Freelance artists have the right to receive specific tax benefits. An income of less than 20 000 HRK a year is not taxed (approximately 2 740 EUR). Compensation for per diems and travel expenses is not considered part of the income. 25% of authors' fees are not taxed, and another 30% are recognised as
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business expenses. Donations made for cultural purposes to associations and other legal entities engaged in cultural activities are not taxed. Donations of up to 2% of the donor's total annual income are recognised as such by law, while donations exceeding this sum must have a certificate issued by the Ministry of Culture. In 2012, the regular VAT rate, which applies to other cultural goods and services, was changed from 23% to 25%. With Croatia entering the EU, the tax rate on books and cinema tickets changed from 0% to 5%; for concert tickets and other cultural events it is 10%, while for e-books it remained at 25%. All newspapers that have valid media statutes are taxed at 5%.

5.1.6 Labour laws There is no specific legislation regulating labour relations for the cultural field. There is also no systematic monitoring of trends regarding cultural employment. However, according to the Strategy for Cultural Development in Croatia (Cvjeti!anin and Katunari", 2001) the labour market shows some general trends towards more flexible employment similar to those observed in other European countries. The State Institute for Statistics produces annual reports based on a very narrow definition of culture (see chapter 4.2.3). There is a unified system of salaries for those working in the public sector, including those employed in state-established cultural institutions and those working in the city or municipal cultural institutions. The Union of workers employed in the cultural sector (HSDK) - cultural institutions, ministry of culture, etc., includes freelance artists as well. In 2003, HSDK signed a collective agreement for employees working in the cultural institutions whose salaries are paid from the state budget (NN 2/04, addition NN 77/07). In 2012, the government cancelled the Collective Agreement for public sector employees, and this included those employed in culture. The new Collective Agreement for state and public sector employees was signed by HSDK in December 2012, while the negotiations for collective agreement for employees working in the cultural institutions was still under discussion in September 2013. There is a need to clarify the position and rights of those who are employed in institutions vis--vis selfemployed or freelance artists and cultural workers. It can be expected that this issue will be put on the agenda in the future. The Union of Actors was established 18 years ago, but still it does not function properly. An initiative for the establishment of the Union of Freelance Artists was outlined in 2008, but it is still not active. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
Denmark/ 5.1 General legislation

5.1.4 Social security frameworks Besides the regular labour market legislation, there are no special social security arrangements for artists and cultural workers in Denmark. Artists operate under the same social security system as all other
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citizens. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws Cultural production and distribution is generally taxed on the same basis as regular tax regulations on income from other activities. However, some special agreements have been passed by the Parliament in order to improve the economic working conditions of the cultural system, through tax regulations specially targeted to artists themselves, specific exemptions on corporate taxes for investment in culture, laws on private foundations of public utility and VAT exemptions: Act nr. 1062 of December the 17th 2002 on tax equalisation of income from artistic creation made it possible for artists to split their income over different tax years; for example artists with a maximum income of up to 539 000 DKK per year can store the amount for up to 10 years for later taxation. This does not count for performing artists. Tax exceptions in the cultural field Until 2002 only certain specific awards, e.g. The Nobel Price was tax exempted. In 2002 (Act No. 391, June 6 2002) this exemption was extended to all awards, if the award was given as a sign of recognition of the artist's merits. The condition was that the award was not been applied for and that it was a one-time payment. Act no. 538 of 6 June 2007 further extended this exemption, so that awards from private companies were included. Furthermore The Law on Tax Exceptions in the Cultural Field (Act nr. 138, passed by the Parliament, December 20, 2004) made it easier for private companies to deduct investments in the arts. When a company buys a painting, up to 25% of the price can be deducted for tax purposes. Most recently, Act nr. 1389 of 20 December 2004 also made it possible for private companies and funds to donate gifts to public supported cultural institutions. Conditions attached are that the gift must be donated without any application and a maximum of 25% of the donation can be deducted for tax purposes. Law on taxation funds The Law on Taxation of Funds (Act no.145 of 19 March 1986) was introduced to take effect from the tax year 1987. It was part of the tax reform of 19 June 1985. Since then a number of adjustments have been made, but the principles from the 1986 law remain intact. The main principle is as follows: According to the Law on Taxation of Funds, funds are taxed by rules, which are in principle similar to those applicable to joint-stock-companies. In order to avoid hindering a fund from looking after such interests as are stated in its statutes, the Law on Taxation of Funds comprises a number of exceptional rules on rights to tax deduction of division of profits and deposits: the fund may, according to rules similar to those governing limited companies, deduct operational costs. Expenses for sponsorships that are part of the fund's operations in reaching its aims may then be deducted as operational expenses; there is no tax limit on the amount a fund may give out for sponsorship. However, the sponsored amount may not exceed the taxable income assessed after the normal rules;
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a distribution may be tax deductible either as an unspecified charity, as a distribution for the common good or as a statutory distribution. If it is the latter, then a condition for tax deduction is that the receiver of the distribution is taxed; furthermore, the fund may deduct an amount corresponding to 25% of a year's distribution to the common good for consolidation purposes; and if the economic conditions within a fund disallows the implementation of a project in one go, there is the possibility of setting aside deductible funds for later distribution for the purpose of common good. If the purpose is cultural or artistic, it may be permitted that deposits are made to nonspecified projects that have to be realised within a period not exceeding 15 years. Thus, funds have wider access to tax deduction for grants to cultural activities than private corporations, because there is no tax limit to the amount a fund may give out for sponsorship. Although the Law on Tax Exceptions in the Cultural Field (Act nr. 138, passed by the Parliament, 20 December 2004, see above) has made it easier for private companies to deduct investments in the arts and to donate gifts to public supported cultural institutions, only a maximum of 25% can be deducted for tax purposes, e.g. when a company buys a painting or donates money to a local music school. But funds cannot both deduct donations to cultural purposes according to the Law on Taxation of Funds and then also according to the Law on Tax Exceptions in the Cultural Fields rules of tax deduction for gifts to cultural institutions. VAT exemptions: The Danish rate of VAT on cultural services and goods is 25%; e.g. Books and music CD's are taxed at 25%. But a few exceptions do exist: in the case of a first-time sale of an artist's own works, the artist and the artist's heirs may sell VATentitled works at a reduced price corresponding to 20% of the VAT taxation base (VAT Law 30, 3) inserted through Law No.375 of May 1994); an artist or the artist's heirs, who sell their own works of art for the first time, do not have to register for VAT when the sale does not exceed DKK 300 000 either in the current or the previous calendar year (VAT Law 49, 2, No 2, inserted through Law No 375 of May 1994, changed through Law No 291 of May 2002); on imports of artefacts, the VAT calculation base is 20% of the base applicable for importing from non-EU countries; sports activities and sports arrangements are exempted from VAT - VAT Law No 375 of 1994; cultural institutions, including libraries, zoological gardens etc. are exempt from VAT, including closely associated goods deliveries. The exemption does not include radio and television broadcasts, cinema-and theatre performances or concerts or similar arrangements.(VAT Law 13, 1, No 6, Law No 375 of May 1994); fees received from writing-and composing work, as well as other artistic activities, is exempt from VAT. The exemption does not include sale of art artefacts. (VAT Law No 375 of May 1994); deliveries of goods and services in connection with charity arrangements and collecting and sale of used goods of small value is, under certain conditions, free from VAT duty (VAT Law 375 of May 1994); and charitable societies' sale of goods and benefits in connection with activities are, under certain conditions, exempt from VAT (VAT Law No 375 of May 1994).

5.1.6 Labour laws
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There isn't any specific labour law in Denmark that applies to artists or other people employed in the cultural field. The current Danish Labour Law is valid for all Danes, regardless of their profession. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
Finland/ 5.1 General legislation

5.1.4 Social security frameworks Cultural workers, including most of the cultural professionals employed in publicly owned or publicly supported cultural service systems including the performing arts are covered by the compulsory social security and pension systems. This is also the case for those who are more permanently employed by enterprises of the culture industries and by professional / trade associations in the fields of the arts and culture. This overall social security protection does not, however, cover free (self-employed) artists and free-lance cultural workers. There have been attempts to improve the pension and social security system of self-employed artists and non-taxable grant receivers. The general Pension Law, the Act on the Pensions of Artists and Some Particular Groups of Short-Time Workers, has standardised the situation for freelance artists and professionals who are employed and working in the premises of an employer. The position of selfemployed artists and free-lancers and persons whose work has been financed for long periods by nontaxable grants has remained weak. There have been demands for reforms in three issue areas: to include unemployment insurance and pension payments as part of the social security costs, even in the accumulation of shorter-term grants; to make the tax-deductions, pension and social security system of artists and freelancers relate better to the uneven and varied flow of artists' income; and to improve the rights of artists as freelance entrepreneurs. Some planning progress has been made in all of these issue areas but only one reform crossed the threshold of legislation. The government presented to Parliament a Bill where self-employed artists and those on short-time grants are given an opportunity to enrol in the pension and social security systems of agricultural entrepreneurs. Parliament passed the Bill and the amended Act entered into force on 1 January 2009. There is not yet information about how well the target groups have used this opportunity. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws There are no legislation or special administrative arrangements that would offer incentives for business sponsorship. On the other hand, income taxation legislation (Income Tax Act, paragraph 57, amended in 2007) offers tax deductions for donations. More specifically corporate actors (not a private individual) can deduct:
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a minimum of 850 EUR and a maximum of 250 000 EUR donation to promote art or science or to support the protection of the cultural heritage; the deduction limits are the same where the receiver is another EEA state, publicly supported university or other institute of higher education or a fund linked to either of the latter two; and other deduction limits are a minimum of 850 EUR and a maximum of 50 000 EUR donation to promote science, art or to preserve Finnish cultural heritage and where the receiver is an association or a fund linked to either of these two and has its main goal to promote arts, science or preservation of Finnish cultural heritage and belongs to the Taxation Board's list of the rightful receivers. The Income Tax Act (paragraph 22) also defines the criteria for non-profit organisations ("organisations accruing collective benefits"), which can have total income tax relief for their small-scale non-commercial business activities. There have been debates under which condition this tax relief may be in conflict with the EU Treaty, Article 87, which prohibits competition distorting subsidies or financial transfers of any other forms of resources to market organisations. Regarding tax rates, the Finnish VAT Act has been enacted to suit the valid EC / EU VAT directives. Since July 2010 the basic VAT-rate in Finland has been 23%. The lower VAT-rate of 9% is applied for books and income fees of cultural, art and entertainment services and performances (entrance fees to museums, box office receipts from cinemas, theatres, orchestras and circus, music and dance performances). The VAT on sales of (non-exported) works of art, by artists or by individual owners of artist's rights (initially zero rate until the end of year 2002), is also 9%. The VAT-rate on the price of newspapers and journals was zero until the end of 2011, but since 1 January 2012 the VAT-rate of 9% has been applied also to this sector. On government decision of March 2012 the VAT-rate will be raised from 1.1.2013 onwards to 24% and 10% respectively.

5.1.6 Labour laws The main legal instruments that regulate the use of the Finnish labour force are the Act on Labour Contracts and the Act on Civil Servants. Both define the rights of the employees and the obligations of the employers. The Finnish tri-partite system of collective bargaining (income negotiations) "activates" these laws often and this may result in their revision. They as well as the rounds of collective bargaining are relevant from the point of view of performing arts and cultural services. Self-employed artists and freelance workers are, of course, outside these laws and the more comprehensive system of collective bargaining, although the negotiation results of these larger systems may also shape their working conditions and benefits. General labour laws also have regulations that concern discrimination, yet the protection against gender discrimination is stipulated in the Equality Act (see chapter 4.2.10). See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
France/ 5.1 General legislation

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5.1.4 Social security frameworks Civil servants have a specific social security regime, salaried workers are managed by the Social Security Office and independent workers have their own sectoral social security offices. Paralleling the emergence of the Welfare State, public authorities tried to improve the social status of artists and creators: with the creation of the Caisse nationale des lettres in 1946 (nowadays the National Centre for Books and Literature), the Copyright Law of 1957, social security for artists-authors in 1964 (see for instance: law n 75-1348 of 31 December 1975 on social security for artists, authors of literary and dramatic, musical and choreographic, audiovisual and cinematic, graphic and visual works; article L.382-1 and following with the Social Security Code). A specific social security regime for temporary and occasional workers (intermittence) was set up in 1936 for the technicians of the cinema industry and from 1969, performing artists and interpreters were also covered, followed by technicians in the performing arts. With this regime, named "intermittence du spectacle", performing artists and technicians benefit from the presumption that they are salaried: consequently, they have access, despite discontinuity in their employment, to various measures for social security coverage (health insurance, unemployment benefit, insurance for incapacity and death, retirement pensions, housing aid, etc.) and professional training. For about ten years now, the Ministry of Culture has had to face the question of preserving this exceptional law, partly because of its cost and of certain abuses that can be observed (see circular of Prime Minister of 6 August 2003 on the mobilisation of state departments relating to the economic and social situation in the audiovisual, cinema and performing arts sector). In 2008-2009 the Entretiens de Valois were organised at the Ministry of Culture between stakeholders of the performing arts sector, to tackle these issues and revise performing arts policies. Nevertheless the question of intermittence was not entirely dealt with. The current legislation, which was last revised in 2007, will be renegotiated in 2013. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws There is no general tax legislation for culture, but many special measures operate in the different domains. More information is available on http://www.culture.gouv.fr/culture/infos-pratiques/fiscal/index.htm. Tax laws for culture pertain to five major sectors: artistic and literary creation; preservation of cultural heritage; promotion of culture; cinema, broadcasting and the music industry; and press and publishing. Law n 2003-709 of 1 August 2003 on sponsorship, associations and foundations aimed at enhancing the tax regime in these areas. The main tax laws concern tax exemptions, wealth tax or also the implementation of specific VAT rates. There are several VAT rates in France (some are specific to Corsica and overseas territories):
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normal rate 19.6% intermediary rate 7%; reduced rate 5.5%; and particular rate 2.1%. The normal rate applies to the majority of goods and services. The intermediary rate applies to cinemas, feasts and funfairs, and the entrances to zoos, museums, monuments, exhibitions and cultural sites. In 2013, the VAT rate (changed from 5.5% to 7% in 2012) was restored to 5.5% for: books (paper and digital) and book rental activities; and ticket-selling for the performing arts: theatre, cabaret, circus, concerts and shows (except in establishments where food and drinks are served). The particular rate of 2.1% applies to press publishing, to the public licence fee for broadcasting and to ticket prices for the first 140 performances of newly created or newly staged theatres works. From 1 January 2014, the main VAT rates will be modified by article 68 of Law n 2012-1510 of 29 December 2012, the third corrective finance act of 2012: the reduced rate will be lowered from 5.5% to 5%; the intermediary rate will be raised from 7% to 10%; and the normal rate will be increased from 19.6% to 20%.

5.1.6 Labour laws A specific social insurance regime applies to authors and to "artists-authors" (writers, music composers, film and television authors, software authors, choreographers, photographers, visual artists, graphic artists, etc.), by which they can benefit from social coverage under the same conditions as salaried workers. Artists and technicians working in the performing arts or audiovisual and entertainment industries (film, television, etc.) can have specific social security coverage designed for people without regular activity or steady employment, a regime commonly called the intermittence du spectacle (see chapter 4.2.9 and chapter 5.1.4). See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
Germany/ 5.1 General legislation

5.1.4 Social security frameworks Artists and journalists / authors in the Federal Republic of Germany enjoy comprehensive social security coverage. When employed, they are covered under the general social security regimes. Self-employed
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artists and journalists / authors are obliged to join the Artists' Social Insurance Fund (KSK). The special protection for self-employed artists and journalists / authors provided for under the Artists' Social Insurance Act (KSVG) which came into force on August 2nd, 1981 encompasses statutory health, longterm or old age care and pension insurance. Like employees, the artists and journalists / authors must only pay half of the social insurance contribution. Sixty percent of what could be labelled an "employers share" is paid by the companies that regularly exploit and market the work of artists and journalists / authors. To that effect, the enterprises are charged with an artists' social insurance levy (Knstlersozialabgabe) on all fees and royalties paid, whose level is subject to annual adjustments. For example, the levy reached 5.8% in 2005 and then decreased in the following years to 4.1% in 2013. In addition, the Federal Government provides a subsidy to help fund the supposed "employee's share" with 40% of the expenditures of the Artists' Social Insurance Fund. Through another amendment of the Artists' Social Security Law that came into effect in June 2007, the financial basis of the Fund was improved by broader coverage and a stricter examination of all contributors, including the artists as beneficiaries. In September 2008, the attempt of some Lnder in the Bundesrat to abolish the Social Security Act for Artists failed, due to a broadly supported protest against such plans both from cultural policy makers of all parties and from culture and artists' associations. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws Indirect state support for the arts and culture in the form of tax breaks is not laid down in a separate piece of legislation but instead consists of a multitude of regulations contained in various specialised acts. In the case of VAT, some cultural products (such as books) are subject to a lower rate of 7% instead of the standard 19%; under certain conditions, public cultural operations and non-profit activities (e. g. theatre performances) are exempt from VAT and corporate tax altogether. Since January 1st, 2000, an Act on the Taxation of Foundations is in force, which includes tax incentives for the establishment of and donations to foundations. In recent years, additional tax breaks have been incorporated into the law governing donations, and the tax-exempt ceiling for income from voluntary activity (the so-called standard exemption for course instructors) has been raised and extended to apply to other groups. The reform of the Law on Non-profit Character and Donations in July 2007 eases taxation of civic commitment. Amongst others, donations remain free from income tax to a limit of 20% and the tax free allowance for the establishment of foundations was raised from 300 000 EUR to 1 million EUR.

5.1.6 Labour laws With the exception of the Artists' Social Insurance Act (see chapter 5.1.4), there are no special laws regarding the terms of employment for artists and other cultural workers. The general labour legislation is applied. If artists or cultural workers are employed in municipal, Lnder or federal facilities, then the public service regulations are applied. On the basis of the general Wage Agreement Law (TVG), special contracts and wage agreements for the cultural sector, including non-artistic staff, were concluded by
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unions and employers organisations for single artistic sectors and cultural facilities such as theatres, orchestras and music schools. The conditions of work for main occupational groups such as singers, actors, orchestra musicians etc., are laid down in these agreements. In addition, special courts of arbitration have been set up to settle employment disputes in theatres (Bhnenschiedsgericht). The right of employees to participate in decision making processes is guaranteed through the General Worker Co-determination Laws (Mitbestimmungsrecht) and similar regulations for public service staff. However, these rights are somewhat restricted in companies such as e.g. theatres, museums or libraries as well as newspapers abd broadcasters with regard to management decisions of artistic or scientific relevance (the so-called Tendenz!schutz). Of relevance for independent artists and journalists is a regulation from the 1970s in the Wage Agreement Law ( 12a TVG) which was revised in October 2005. Under the law, freelancers who work predominantly for one company can enjoy an "employee-like" status which allows their professional organisations to conclude wage or fee agreements with their contractors. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
Greece/ 5.1 General legislation

5.1.4 Social security frameworks Collective agreements for performing artists, such as actors, were established upon the initiative of Melina Mercouri in the early 1980s. Such agreements have been established with public television and radio companies and between the Association of Greek Actors with theatre entrepreneurs. Typically, performers work on short term engagements, either as independent contractors or on a day salary basis, and often find it difficult to collect the necessary time credits in order to be paid a full pension. Nevertheless, the framework of social security for self-employed artists and authors remains sorely lacking. The Ministry of Culture has intervened in several public cases of financial hardship of writers, artists or actors to offer financial support. It operates an honorary pension scheme, which is, however, limited to a small number of writers and artists deemed to be of national importance (Law 3075/2002). See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws For many years, there have been few legal and financial incentives to promote sponsorship in the fields of culture and the arts. An Amendment to the Tax Law which provided tax exemptions for cultural sponsorship (1990) was practically rescinded under austerity economic policies in 1997. In 2007, however, legislation was introduced to offer significant tax incentives for arts sponsorship; a central bureau is to be set up, firstly to certify that a given sponsorship initiative is indeed for a bona fide cultural cause, and, secondly, to produce a list of priority projects in arts and heritage for which sponsorship will be sought.
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Inheritance tax on art collections can be paid in kind, a measure effectively equal to a public purchase of art programme. This measure helps to ease the burden of people who would have to face a heavy financial burden if they came to inherit an important collection. The income derived by writers and artists from their creative work is VAT exempt.

5.1.6 Labour laws See chapter 5.1.4.
See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
Hungary/ 5.1 General legislation

5.1.4 Social security frameworks Hungary has moved away from the socialist (communist) era when nearly all cultural actors were either civil employees or members of the monolithic artistic associations enjoying benefits comparable to salaried persons. The most difficult task has been to transform the system of health care and pension plans of the so-called "Art Fund", inherited from the communist period, to a new insurance system. The state guarantees the payment of old age support (de facto pension) to those artists and writers who had been paying members of the Art Fund before it was transformed into the Hungarian Public Foundation for Creative Art (Magyar Alkotm"vszeti Kzalaptvny, MAK) in 1992. The budget for 2012 of the Ministry in charge of culture contained a subsidy of HUF 1 350 million (ca. 4.5 million EUR, see also chapter 8.1.2) for these pensions. Along with other quangos this body was dissolved and, from 1 May 2011, its pension-related tasks were delegated to the Central Administration of National Pension Insurance (Orszgos Nyugdjbiztostsi F#igazgatsg) according to Government Decree 52/2011. (III.31). It is estimated that over 75% of actors, dancers, musicians, arts organisers, technicians, designers and other cultural operators working for a variety of clients are self employed. Many self-employed people remained on the margins of the social security frameworks because they had been coerced into the position of quasi entrepreneurs instead of the more secure employee status, so that the employer (often a public institution like a theatre or a museum) could save on the social insurance fees; another reason was that self-employed people tended to pay social insurance after the minimum monthly wage only upon their own choice. To counteract this problem, a few years ago the government started a campaign of reintegration of these "false entrepreneurs" into employment, and passed measures to make paying social insurance fees more attractive. This issue was behind the introduction of EKHO in 2005, a regime of simplified contributions to common charges (literally "public burden"). In the framework of EKHO, more favourable conditions and simplified procedures were offered to a list of professions, typically in the cultural sector. A condition of this status is that the annual income of the person remains below HUF 25 million (about EUR 100 000). The EKHO Law (Act CXX/2005) states that the minimum mandatory tax base for social security contribution payments is the minimum wage, while the rest of the citizen's income should be taxed according to the rules of EKHO. This simplified way of
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paying social security fees is open to employees and self-employed people as well, including pensioners. Independents are not able to claim unemployment benefit. Sickness benefit may be covered by paying into a private insurance policy. Most independents in the cultural sector pay into a private pension fund to top up the state pension. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws There were two income tax rates for individuals until 2011: 18% and 36%, the latter operating from about 6 500 EUR per year. This was replaced with a 16% single rate, introduced gradually from 2011. Family taxation was also introduced to provide extra incentives to families having at least one child. Families with three children living on the average salary are exempt from personal income tax. Social security payments are usually calculated at 27 % above the gross salary and the 16% personal income tax is due to be paid on the super gross salary including social security costs. By nature of single rate taxation, those with higher legal income benefit most. State prizes, awards and fellowships are tax exempt; artists may claim material expenses on their income tax. Also, the tax base of authors and other creative artists may be reduced by 50% of the income generated by copyright or other royalty payments. On the other hand, from 2007 the tax allowance on (up to about 200 EUR per year) on such revenue was cancelled: this had been a special allowance for the creative class since the 1980s. From 2011, company income tax is 10% for profitable companies below the 500 million HUF tax base (over 500 million the tax is 16%), with an additional 10% tax on the dividend. The so-called Non-Profit Act (CLVI/1997) defines the operational conditions of third sector organisations and foundations. It includes tax incentives to facilitate the involvement of private support in supporting public goals. By adhering to specific conditions, almost all non-governmental organisations qualify as Public Benefit Organisations (PBO), with a smaller number qualifying as Outstanding Public Benefit Organisations (OPBO). Businesses companies and individual entrepreneurs can deduct 100% of the value of donations given to PBOs from their tax base, 150% if the beneficiary is an OPBO, and in the case of multi-annual pledges, this rate is 170%. 30% of donations for charitable purposes can be deducted also from personal taxes. Each of these regimes has an annual ceiling, e.g. tax-exempt donations cannot exceed 20% of a company's tax base in a year. In spite of these regulations, philanthropic support to cultural organisations is not particularly widespread, and the little that takes place is barely acknowledged: the prevailing mood in the cultural sector is that of dissatisfaction. Certainly, most of these tax benefits affect other sectors (social and health care, education etc.), and the bureaucratic regulations attached render donation complicated both for the donator and receiver. Greater attention and expectations are linked to sponsorship, where tax exemption is difficult to conceive: the entire amount can be deduced from the tax base as marketing expenses anyway. Tax legislation has greater significance with investments. In this respect, the Law on Motion Pictures (Act II/2004 or Film Law) stands out, offering a 20% tax break on film making. The tax credit attracted the shooting of international productions and also provided incentives to some local projects. It has also created a favourable environment for investment in studios, the largest of which is the Alexander Korda
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Studios at Etyek. After negotiation with the European Commission several of the criteria for public support were defined more strictly (with the cultural principle reinforced), and the limits of state subsidies have been set till 2013. On the whole, the main principles of the Film Law were found to be compatible with EU regulations. With the Performing Arts Act (see chapter 5.3.2) a similar tax credit arrangement was introduced for theatres and orchestras to the amount of 80% of the box office income each year. This became an important source of revenue for performing arts organisations. (Source: http://www.eloadomuveszetiiroda.hu). The fact that the regime was extended to donations to sports as of 2012 created concerns: how much would be left for culture at a time when profits of corporations are dwindling anyway? Nevertheless the amount grew to 11.6 billion HUF, divided between 150 organisations. (For comparison: the grants of the National Cultural Fund amounted to 9.8 billion HUF.) In 2003, a significant innovation in the fiscal system radically simplified the administration and taxation of small enterprises (called EVA: simplified enterprise tax), which is beneficial for many self-employed artists and cultural operators. Under EVA, small businesses are taxed at a flat rate of 37% from 2012. This eliminates any other income tax or levy. No record is required on business expenditure which negates the need for the collection, storing and book-keeping of bills and accounts. On the other hand, EVA subjects must add VAT to their invoices which they cannot reclaim. Partly, the large success of EVA led to a next step, the introduction of EKHO, a regime of simplified contributions to common charges (literally "public burden") - see chapter 5.1.4. There is one more speciality in the Hungarian tax system Act CXXVI/1996 on "1%" has evoked great attention outside the country as well. When taxpayers submit their annual tax returns, they can allocate 1% of their income tax to a non-governmental organisation of their choice by indicating its tax identification number (also another 1% to a registered church, if they so wish). According to the data disclosed by the tax authorities, 49% of tax- payers channelled 13.1 billion HUF from the tax on their 2012 income to 31 101 organisations. The full list of recipients is available on the website of the tax authority. It is next to impossible, however, to identify the share of culture from the spreadsheet of 31 thousand lines. Names of the organisations do not always provide clues about their profile. Here is an exception from the first page of the list, for sake of illustration: the Bartk Chamber Choir Foundation in the city of Szolnok received HUF 159 000 (about EUR 530) from 39 anonymous donors. The general value added tax (VAT, in Hungarian fa) rate of 25% was raised to 27% with effect from 2012, which affects music recordings, performing arts (including theatre tickets), film making, video lending, cinema, etc.; whereas a rate of 5% operates for books, including textbooks, periodicals including newspapers, as well as licensed handicraft products. VAT registration is obligatory for undertakings, unless an individual tax exemption is granted, for those with an annual turnover under five million HUF (about EUR 16 700).

5.1.6 Labour laws Artists and other cultural actors can work in five forms: as civil employees, general employees, individual entrepreneurs (sole traders), corporate entrepreneurs, as well as freelance workers. The minimum monthly wage from January 2013 is HUF 98 000 (about EUR 327). Gross average earning is 2.3 times this amount. Social partnership functions relatively effectively on the national level and on a large scale, e.g. between
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the government and civil employees - whereby they come to an agreement on improvements in working arrangements including productivity and salary increases. It is less so, or even non-existent, in respective cultural sub-sectors. Labour conditions of civil servants and civil employees are regulated by the acts on civil service and on public finances. They contain the detailed schedules and criteria of salaries and wages with many direct references to cultural and artistic jobs. These are updated each year, in which the trade unions of the respective cultural sectors take an active part. As was described in chapter 5.1.5, until recently a considerable number of cultural workers have acted in the framework of a "betti trsasg" (Bt), the simplest form of business companies or partnerships, usually with family members as quasi business partners. A "Bt" is also used by employees receiving a regular wage who do occasional freelance work. In a number of public cultural institutions a two-tier salary system operates with some artists on full time contracts, while others are self-employed. The provisions in the pensions system permit performers to retire early, e.g. dancers and some other performing artists under certain circumstances. There are no specific provisions concerning the involvement of volunteers that are relevant to culture. Act LXXXVIII/2005 provides the necessary legal environment and protection for public voluntary work. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
Ireland/ 5.1 General legislation

5.1.4 Social security frameworks There are no specific social security frameworks for artists in Ireland outside of the general social security regime. Artists registered as self-employed can apply for Jobseekers' Allowance (rate in 2011: EUR 188.00 per week for a single person) if their income falls below the current level of the social welfare benefit as determined by a means test, and as long as they are available for and actively seeking work. This poses difficulties for artists who may be urged to take up non-artistic work. In 2010 the Arts Council, with the Arts Council of Northern Ireland, published The Living and Working Conditions of Artists in the Republic of Ireland and Northern Ireland. Of the Republic of Ireland artists who received unemployment payments in the three years prior to the study, two in five said they experienced difficulties in receiving payments because of their status as an artist. The publication by the Arts Council, in 2006, of a report on The Socio-Economic Conditions of Theatre Practitioners in Ireland provides some data to support better recognition of interpretative artists in the Social Welfare system. This study found that 50% of those working in the theatre earn less than EUR 7 200 per annum, have to manage on multiple jobs to survive and average just 20 weeks work per year in their specialist area. The full text is available for download from: http://www.artscouncil.ie/library/downloads/theatre_socio_study.pdf. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

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5.1.5 Tax laws Though Ireland does not have general legislation aimed at stimulating arts sponsorship or investment, there is a range of tax relief that works to this end. Section 481 of the Taxes Consolidation Act 1997 allows investors to claim tax relief on share subscriptions in qualifying film production companies. The amount of relief that can be claimed is subject to annual limits. An amendment, as a result of the 2008 Finance Acts, has increased the amounts of money that may be raised under the scheme from EUR 35 million to EUR 50 million, the individual and investor cap and the percentage tax relief (now at 100%). This has improved Ireland's competitive position as a location for film and TV production. By 2009, 471 projects had benefited from this provision. Thirty-four projects were supported in 2007. Section 1 003 of the Taxes Consolidation Act, 1997 enables persons who donate important national heritage items to the Irish National Collections to credit the value of these donations against their liabilities for certain taxes. In addition, tax breaks are allowed on: business sponsorship of an artist or arts organisation in exchange for promotion of the business; donations to eligible institutions; expenditure on buildings and gardens; gifts to the Exchequer; and provision of certain goods and services such as printing of programmes or tickets, offering airline tickets, etc. However, the 21% VAT charge (increased in 2009 to 21.5%) since 2003 on visits by foreign performing artists to Ireland continues to be burdensome for festivals and other organisations, as well as discouraging North / South exchange, since the same tax does not apply in the UK. Generally the usual VAT rate of 21.5% is reduced to 12.5% in respect of sales of art works and admission to artistic and cultural exhibitions. Books and the promotion of or admission to live theatrical performances are VAT-exempt and exhibition publications are subject to zero-VAT under certain conditions. Artists in Ireland benefit from a specific tax provision. There is, however, no overall status-of-the-artist legislation. Tax-exempt status for self-employed creative artists resident in Ireland was introduced in the 1969 Finance Act. A list of beneficiaries since April 2002 is provided at http://www.revenue.ie/en/tax/it/leaflets/artists-exemption-section-195-1997-act.html. This provision was generally perceived as an imaginative piece of legislation, which has been laudedinternationally. It allows exemption from tax on income from sales or copyright fees in respect of original and creative works of cultural or artistic merit, as well as on Arts Council bursaries, payments of annuities under the Aosdna scheme and foreign earnings. In 2011, the provision was revised with a limit of exemption on the first EUR 40 000 of profits or gains. This is subject to the Universal Social Charge and may be subject to Pay Related Social Insurance, VAT and High Earners' Restriction. Employed artists are subject to the same tax regime as all Irish citizens. For non-resident artists the normal withholding rate is 26%. This is reduced to 10% or to zero in the case of those countries (over 30 of them) with which Ireland has Double Taxation Agreements.

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5.1.6 Labour laws Artists in Ireland are subject to the same labour laws as all Irish citizens. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
Italy/ 5.1 General legislation

5.1.4 Social security frameworks Artists and others employed in the cultural sector, like any other Italian citizen, are just covered by the basic health insurance provided for by the National Health System. The only exception to this rule, since fascist time, are the performing artists, as well as those employed in theatres and in the audio-visual industry (radio, television, cinema, sound recording). They enjoy more favourable social security coverage through ENPALS / Ente Nazionale Previdenza e Assistenza Lavoratori dello Spettacolo, created in 1934, which is able to cater for the often intermittent working situation of this special category of employed. In recent years, though, a strong boost towards harmonisation of all the country's social frameworks has weakened this category's once privileged situation. An agreement was signed in 2010 by Enpals and SIAE (the copyright association), in order to control and contain the frequent evasion of social security contributions. On the other hand, unlike performing artists, visual artists and writers have always enjoyed a purely "virtual" social insurance framework, as ENAPS (Ente Nazionale Artisti, Pittori e Scultori) the ad hoc public institute has traditionally been too underfinanced to provide any kind of social protection, and has limited its activity to the organisation of occasional prizes or artistic and literary events. In this respect, there are, presently, some prospects of change: with the intention of rationalising public expenditure through the suppression of public institutes, ENAPS has been, in fact, incorporated in ENPALS by Leg. Decree 78/2010. While the process of incorporation is still underway, an additional rationalisation was brought about by Law n. 214/2011, having further ruled to suppress ENPALS by merging it to make budget saving with INPS / Istituto Nazionale Previdenza Sociale, Italy's general social security organisation. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws Legislation to foster support for the cultural sector from private donorswas introduced in the 1980s, when Law 582/82 allowed the total deduction from taxable income of all donations and sponsorship given by individuals and corporations, as well as of expenditures for the restoration of privately owned built heritage: which led to a "boom" in capital investments in the restoration of palaces, castles, and historical gardens. The amount of such incentives was, however, progressively and significantly reduced by subsequent budget laws, in particular by the Budget Law for 1992, when the tax deductions (more
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favourable for citizens in the higher tax brackets) were transformed into tax credits, within the limit of 19% of the amount of the donation, equal for all citizens, non-profit organisations and companies. After nearly twenty years, private donations, if earmarked to a list of cultural institutions drawn up by the Ministry of the Heritage, became again totally tax deductible albeit only for companies thanks to Law 342/2000: however, the law establishes a ceiling of 52 million EUR for the potential loss of revenue for the state, which cannot be exceeded. Bureaucratic strings, though, may have affected the law's implementation, which yielded in 2001 much less than expected: only 16 million EUR. The amount of such donations increased in the following years, reaching a peak in 2008, and subsequently decreasing as a result of the economic crisis (see chapter 6.3). The cuts affecting donations by private individuals and non-profit organisations in the same years have been even more drastic. The next, quite bipartisan step, envisaged by all the recent Ministers since the 2000s, has been aimed at increasing the amount of private contributions for culture by making tax incentives once again more appealing for individuals and non-profit organisations as well. In particular, it is estimated that by following the US model, where around 75% of private donations are given by individuals a higher tax relief could significantly increase the support of private individuals to the cultural field. However, an agreement between the Ministry of the Heritage and the Ministry for the Economy historically opposing such measures has so far been out of reach for any kind of political majority. It should be added that substantial fiscal incentives in the form of tax credits and tax shelters are, at least temporary, in force for investments in the cinema industry (see chapter 5.3.6). Finally, as shown in Table 4, the VAT rate on cultural goods is generally lower than the usual rate, notably for books and newspapers. However, for the category of recorded music, VHS and DVDs, the much needed VAT reduction, to foster the week demand by Italian consumers, has not been possible for the time being, as an agreement at EU level could not be found, yet. Table 4: VAT rate of cultural goods and activities, 2010 VAT 10% 10% 10% 10% 10% 10% 4% 4% 21%
Cultural goods and activities Cinema Theatre Opera Dance Concerts Museums and exhibitions Books Newspapers Recorded music and audiovisual Source:
elaboration by Associazione per l'Economia della Cultura.

5.1.6 Labour laws See chapter 5.1.4.
See also comparative information provided in the Compendium "Themes!" section under "Status of
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Artists".
Monaco/ 5.1 General legislation

5.1.4 Social security frameworks Those officially employed in the cultural sector are covered by the general laws in force in the Principality. A Law has been promulgated to support artists (n1.360 on July 4th, 2009) who can, on some conditions, benefit by social security as independent professional artists. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws Tax reductions relating to individual sponsorship are not relevant as there is no direct taxation of individuals in the Principality. Sovereign Edict N 9 267 of 14th October 1988 authorises tax deductions on sponsorship from corporate taxable income.

5.1.6 Labour laws There are no specific labour laws for the cultural sector. This area is governed by the rules of common law. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
Netherlands/ 5.1 General legislation

5.1.4 Social security frameworks General laws (including social security legislation) related to independent entrepreneurs also apply to artists. In the Dutch Unemployment Insurance Act [Werkeloosheidswet], an exception is made for freelance artists. Acceptance criteria (based on the period of unemployment) are less severe for freelance artists in comparison with other professions.
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Specific regulations are indicated in the Work and Income Provisions for Artists Act [WWIK, Wet Werk en inkomen kunstenaars, 2005]. This Act provides artists temporarily - for a maximum of 48 months, spread over a maximum period of 10 years - with a basic income (70% of the guaranteed minimum income). However, artists may earn up to 125% of the guaranteed minimum income by doing extra work, have no job seeking obligations and have free access to the training and individual counselling services of Artists&Cultural Entrepreneurship [Kunstenaars&CO, see also chapter 8.1). The WWIK is intended for new artists, building up a profitable practice, and for established artists with a temporary decrease in income. Artists who want to make use of the WWIK, have to prove they received a higher arts education or have run a professional practice. Artists&Cultural Entrepreneurship has the legal obligation to execute these professional searches. In addition to legislation, the government has many funds that provide support to the arts. For example, the Dutch Foundation for Literature [Fonds voor de Letteren] encourages the production of Dutch literature by offering scholarships to literary writers and translators, extra payments above their normal salary, start-up grants and travelling scholarships. The Netherlands Fund for the Performing Arts+ [Nederlands Fonds voor Podiumkunsten+, 2007] (see chapter 8.1.2) provides the same kind of support. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws Donations and inheritances Businesses as well as private individuals can profit from tax exemption regulations. This applies both to sponsoring activities and donations. In 2005, the State Secretary of Financial Affairs has decided to reduce donation taxes to zero. Following changes to articles of the Tax Law (1 January 2006) charitable institutions are no longer charged taxes when they receive money from inheritance funds. In order to qualify for the exemption, these institutions have to demonstrate in their statute and a description of daily activities, that they not only theoretically, but also practically serve "good causes". To compensate the losses in state income as a result of this new regulation, it was decided to raise the betting tax [Kansspelbelasting, Ministry of Justice] from 25% to 29%. Investments Investments in arts and cultural projects, which generate profits up to 54 233 euros, are exempted from charges on return capital. Besides, there is an exemption for labour income of 1.3% of the exempted sum. Monuments Expenses for monumental buildings and gardens are deductible if they are listed on the Monuments Register [Monumentenregister] and the expenses do not exceed 0.8% of the value of the monumental building, up to a maximum of 125 000 euros. Artists Arrangement The Tax Plan 2007 [Belastingplan 2007] contained amendments to the Artists Arrangement
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[Artiestenregeling], applicable for performing artists: wage taxes for foreign artists are no longer deducted if they are coming from a country the Netherlands have an agreement with preventing double tax deduction, or from Aruba or the Netherlands Antilles. Dutch artists in paid employment are also excluded from the Artists' Arrangement; all other - independent - performing artists are included, from pop / rock bands to symphony orchestras. DJ's, VJ's and MC's (Masters of Ceremony at a dance event) are also considered to be performing artists. Volunteers Volunteers may earn a tax free extra income of 150 euros a month maximum, up to 1 500 euros maximum a year. Up to this amount, they do not need to account for their expenses. Higher compensation is possible if the organisation reports the compensation to the tax inspector, on a yearly basis. VAT The system of VAT is divided into 3 rates: a high rate of 19%, a low rate of 6% and a 0% rate. European legislation allows the member states to charge the low VAT rate on tickets for shows, theatres, circuses, funfairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and venues. In 1993, the Netherlands lowered the VAT rate on cinema tickets, admission tickets to public museums (and on the sale of catalogues, photographs and photocopies produced by these museums), theatres and concert halls. Artists who work on commission, such as text writers, composers of advertising jingles, architects and designers, all charge the higher VAT rate. Tax authorities consider that certain forms of subsidy are subject to VAT. However, the Ministry of Finance determined that subsidies arising from the Dutch Cultural Projects Funding Decree [Bekostigingsbesluit cultuuruitingen] would not be subject to VAT. This decree covers all subsidies granted by the Ministry of Education, Culture and Science on the grounds of the Cultural Policy Act (Special Purpose Funding) [Wet op het specifiek cultuurbeleid, 1993], including subsidies furnished by the cultural Funds set up by this Ministry.

5.1.6 Labour laws Collective bargaining agreements There are many collective bargaining agreements [collective arbeidsovereenkomst - CAO] in the performing arts and more generally in the cultural sector. CAOs are labour-agreements between employers and employees. This means that a CAO only applies to employees who are working with an employer. When this is not the case, the national legal agreements are enforced. The existing CAOs are used mostly in architecture, arts education, media (broadcasting, journalism, publishing houses), museums and exhibition halls, performing arts (dance, orchestras, theatre companies, and venues), public libraries, retail musical instruments and sheet music. Special trade unions exist to enforce or monitor these agreements. CAO-wages have risen in 2006, on average, by 1.8%. Almost all art and cultural institutions are organised in the Culture Federation [Federatie Cultuur], an umbrella employer's organisation which monitors the results of annual collective bargaining with respect to work and related conditions between the large Dutch unions, central government and the employers' organisations. Volunteers
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Over 4 million people are involved in volunteer work in the Netherlands; volunteering plays an important role in the cultural sector. There is no special legislation for volunteer efforts, but there is a National Expenses Arrangement [Landelijke Onkostenregeling] by the Ministry of Social Affairs which stipulates a maximum tax free reimbursement of expenses of 150 euros a month (2006) (see also chapter 5.1.5). See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
Norway/ 5.1 General legislation

5.1.4 Social security frameworks The Act on National Insurance ensures that unemployed people are entitled to daily cash benefits. The daily cash benefits partially compensate for a loss of income due to unemployment. Working hours must have been reduced by at least 50% compared to previous working hours. The Act on Social Services ensures that benefits are available to people who are unable to provide their own subsistence. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws The legislation on taxes in Norway implies no specific incentives for private sector investment in culture. The ordinary rate of VAT is 25% (2005). However, cultural services have an exemption from VAT. There is no VAT on tickets for theatre, cinema, ballet or circus performances, and payment for admission to concerts, sport events, galleries and museums is also exempted from VAT. In conjunction with the VAT exemption for the performance of art works (performing arts), the Storting (the Parliament) has approved that the arrangement of such services is also exempted from VAT. Services that are a necessary and integrated part of the artistic performance also have a VAT exemption. In addition, theatres, cinemas and organisers of exhibitions and concerts are exempted from VAT when selling catalogues, programmes, picture postcards and souvenirs. Charity institutions and organisations are also exempted from VAT when selling various goods. There is no VAT on the sale of books and audio-books in Norway, and some periodicals are also exempted from VAT. There are also tax deductions on gifts to voluntary organisations. There are legal measures in terms of fees and compensations that partly constitute the economic conditions for individual artistic activity: The Turnover of Works of Visual Arts Levy Act (1948); Remuneration for the Public Performance of Performing Artists Act (1956); Norwegian Fund for Composers Act (1965); Remuneration for Lending by Public Libraries Act (1987); Remuneration for the Exhibition of Visual and Applied Arts Act (the revenues are used to support foundations for visual artists, performing artists, composers and authors) (1993); Copyright Act (1961);
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Income Tax Act (1999); and VAT Act (1969).

5.1.6 Labour laws Information is currently not available. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
Poland/ 5.1 General legislation

5.1.4 Social security frameworks Within the Ministry of Culture, a Commission for Pension Provisions for Artists was set up to determine the starting date of a creative and / or artistic career for pension purposes. Decisions are made in accordance with the following legal Acts: Act on the Social Security System of the 15th of October 1998 / DZ.U.Nr.157, poz.887; and Act on Pensions from the Social Security Fund of the 17th of December 1998. Those concerned must send the Commission a form together with necessary documents confirming the duration and character of their work. In 2012 a new Pension Law was enacted, extending the retirement age for both men and women to 67 years. The new law will be implemented gradually, starting from 1 January 2013. This issue raised serious concerns among artists, especially dancers, who are afraid of not being able to benefit from an earlier pension. Yet, according to the Social Insurance Institution, the Prime Minister's Decree of 7 February 1983 is still in force and no new regulations have been introduced so far. This means that, some groups of artists can retire earlier. For example: dancer / acrobat: women at the age of 40, men at the age of 45; singer: women at the age of 45, men at the age of 50; and musician: women at the age of 55, men at the age of 60. This Law concerns young artists also those born after 1 January 1969. In order to be able to apply for early retirement, they need to have 25 (men) or 20 (women) years of work experience, including 15 years in the profession of artist. Artists in a difficult financial situation are eligible to apply for a subsistence allowance granted by the Minister of Culture from the Fund for Promotion of Creativity. The allowance is granted once after the application has been positively verified by the commission appointed by the Minister. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
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5.1.5 Tax laws The state has implemented a 50% income tax-free for artists' provision (1991) which allows creative artists to deduct 50% of their income from their creative work as expenses for income tax purposes. According to amendments to the Tax Law (2012), the privilege has been severely reduced as of the 2013 fiscal year. Firstly, tax-payers whose income from creative work exceeds the so called first tax threshold (85 528 PLN of income, after deduction of premiums paid to the pension scheme and health insurance) will not be able to benefit from the 50% deduction. Secondly, individuals with lower income will be able to benefit from it, but on changed conditions. The employers will not take this provision into account while paying salaries, which means that individuals will be forced to pay higher tax-advances. The deduction will be possible only during the yearly tax returns and therefore it will work as kind of a tax allowance. According to amendments made to the Income Tax Act (1993, amendments 2003), deductions of up to 10% are available on donations made by legal persons (organisations, foundations etc.) for "public good purposes". In the case of private persons / individuals, a ceiling of 6% of income has been introduced. Since 1991, state cultural institutions are allowed to receive private donations from individuals or legal persons. The following tax exemptions are made available for NGO's including both foundations and associations: goods and services tax (1993); the tax on increase of remuneration within the framework of statutory activities (1992); property tax which exists within the framework of statutory activities (1991). Foundations are also exempt from paying court fees when registering. According to Annex 2, of the Act on Goods and Services Tax (1993) and the Act on Toll Tax, the sale of services connected with recreation, culture and sport is exempt from tax with some exceptions, for example: cultural institutions are not exempt from VAT (status: end of 2003). They are obliged to pay VAT from the sale of goods and services and on advertising (which is subject to a rate of 22% - the standard rate); there is either a reduced 0% VAT or 7% VAT on the sale of books, periodicals and music scores in Poland with the ISSN or ISBN symbol and in the Braille language; and a 22% VAT is applicable to the sale of CD's, audio and video cassettes and DVD's. According to widespread opinion, the tax changes in Poland do not encourage sponsors and donors to adequately support culture. Transparency and new solutions / measures are being called for. Some changes were introduced to the Law on Income Tax on Individuals, which allows an individual to deduct 1% of their income tax as a donation for a chosen public organisation. Starting from the tax year of 2007, tax-payers do not transfer the donations directly to the beneficiaries, but instead pay through the tax revenue offices. The change simplifies the procedure. In 2007, the Ministry of Culture strived to maintain the preferential VAT rate on books and special periodicals. A decision was taken by the ECOFIN in December 2007 allowing Poland to keep the 0% VAT rate on books and special periodicals for the next 3 years (until 2010). It was not possible to maintain the 0% VAT rate; therefore from 2011 the VAT rate increased to 5%.
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5.1.6 Labour laws Issues related to employment in the cultural sector are regulated by the Labour Code (Act of 26th June 1974 r., OJ 1998, no. 21, item. 94, with later amendments). See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
Portugal/ 5.1 General legislation

5.1.4 Social security frameworks Some legislation has been introduced since the 1980s to safeguard the position of artists and performers in terms of social security. The debate continues, however, as artists and cultural professionals continue to campaign for the government to set up a specific system of social welfare for them: inclusion of artists in the General Social Security Scheme (Decree-Law 407/82); special support scheme for artists / writers having difficulty earning a living (Decree-Law 415/82 and Despatch 23605/2006 (Second Series)); occupational retraining grant for artists or performers (Regulation-Despatch 79/83); and special early old-age pension scheme for classical and modern dancers (Decree-Law 482/99). Artists who are independent (self-employed) professionals - as most are in the arts sector - are covered by the social security scheme for self-employed workers in the event of illness (only if they are covered by the comprehensive scheme, which requires higher monthly contributions), workplace accident and occupational illness, maternity, paternity and adoption, incapacity, old age and death, as well as maternity grants and retraining grants. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws The regulation of fiscal policies and tax laws in the cultural domain is the responsibility of the Ministry of Finance. The Arts Patronage Act was introduced in 1986 and was followed by new laws, particularly the 1999 Statute of Patronage (Law 74/99), which regulates the different types of patronage and sponsorship, enlarges the area to include patronage of education, environment, sport, science and technologies, and increases the tax incentives available (the highest level is for long term contracts). Changes introduced in 2007 limited fiscal benefits to the public and non-profit sectors (Law 52A/2006). A number of cultural actors have expressed the opinion that the Arts Patronage Law is too complex and
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therefore of limited practical use. They argue that it should be revised and made more flexible. Performing artists are exempt from VAT (Chapter II, Section I, Article 9, paragraph 16b of the VAT Regulation Code). Benefits associated with income from intellectual property: income from ownership rights in literary, artistic or scientific work, including income from the sale of unique works of art and income from educational and scientific works, when earned by authors resident in Portugal, provided that they are the original owner, are assessed for personal tax purposes at only 50% of their value, net of other benefits. These provisions exclude income from works not of a literary, artistic or creative nature, works of architecture and advertising work (Items 1 and 2 of Article 56 of the Tax Exemption Act).

5.1.6 Labour laws For performing arts professionals, Law 4/2008 establishes the legal framework for employment contracts. There are however some unresolved gaps in this law: in addition to the fact that it only applies to sector workers under contract (a very small proportion of the total number of performing and visual arts professionals, who are mostly self-employed), rules relating to professional certification and social security were left undefined (see chapter 4.2.9). Other relevant legal documents: regulations governing specific careers in the functional areas of: Libraries, Documentation and Archiving (Decree-Law 247/91, as amended by Decree-Law 276/95); Museums (Decree-Law 55/2001); Archaeology (Regulatory Decree 28/97); specific legislation regarding School Libraries Network (RBE) regulating the function of LibrarianTeachers (Order n 756/2009); establishment of the Culture employment and Culture Training (Joint Despatches 243/99 and 244/99); and general changes were introduced as part of a new statute for public service careers set in 2008 (Decree-Law 121/2008). See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
Russia/ 5.1 General legislation

5.1.4 Social security frameworks There are no specific advantages for artists as far as social security is concerned, who are the subjects of general legal acts concerned with social welfare, unemployment, pensions, etc. As during the Socialist past, most of the artists are still employed by state institutions or receive state commissions. The newly gained freedom of "liberal" professions partly deprived them of the former security provided
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within the powerful Artists' Unions. Today the latter have become a special type of professional organisation providing for associating and social protection. In the early 2000s, fruitless efforts were made to produce a special legal framework for artists by adopting the Law on Creative Workers in Literature and Arts and on their Creative Unions, which has twice passed through the Parliament and has been twice declined by the President. The Artists' Unions have the right to establish their own labour exchange and Funds to support retired or unemployed members. Efforts have been made to support artists in their old age, from individual life-long Presidential grants for prominent artists or stipends from regional governments to special supporting schemes for members of artists' unions (see chapter 8.1). See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws Overall, the Taxation Code (1998-2000) has eliminated almost all deductions on principal, which is regarded as contradictory to the very core policies of cultural support. In that sense, it does not support cultural production, nor does it encourage investment or support from the private sector. The Main Directions of Taxation Policies in the Russian Federation for 2008-2010 do not stimulate state-private partnerships in the cultural sector. Tax shelters for cultural actors are not numerous. The Taxation Code exempts from taxation repair and restoration works within the renovation of cultural and historical monuments, maintenance of cultural objects and free charitable transfer of goods, works, or services. In 2010, a new statement came into force, which exempts from VAT culturally valuable objects imported by the state or municipal museums, libraries, and archives whether bought with public money or gifted. There is a list of tax-exempt national or foreign grants and cultural, literary, artistic, and mass media awards, which are approved by the government. According the Law on Formation and Use of Endowment by Non-commercial Organisations (2006), endowment assets are exempt from VAT, and their use and income are profit tax exempt. However, these benefits concern beneficiaries and do not stimulate benefactors. Tax shelters for cultural actors are not numerous. The Taxation Code presupposes tax exemption for construction, buildings and premises that belong to artists or folk craftsmen as a property, specially equipped and used as workshops, as well as for parts of the building that are used for private exhibitions, libraries, galleries, museums, etc. that are open to the public. In the Taxation Code, there are special professional deductions for materials and expendable supplies used by artists and writers who receive author's fees.

5.1.6 Labour laws Employment is regulated by the general Labour Code, including the minimum wage, for those working in the "public sector", although it does not regulate freelance work or self-employed workers. However, the bulk of cultural workers and artists are somehow employed in state institutions, or are members of
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creative unions (which is equal to employment under the terms of paid membership fees). The Labour Code allows for fixed term employment contracts, which are convenient for directors of theatre or music companies; however, cultural and art workers prefer and insist on indefinite term employment agreements. Some of the Labour Code clauses regulate participation of children in cultural work and use of art works, as well as artists' work at night, on holidays and festival days. In 1993, special legal provisions were made for outstanding creative workers employed in the state institutions and gave directors the power to determine their salary without limitations. In 1994, and in 1996, special Federal Government Acts established a minimum rate of remuneration for filmmakers, artists, writers and others. Creative workers employed in state funded institutions and those working in the mass media receive salaries, honoraria and fees. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
Serbia/ 5.1 General legislation

5.1.4 Social security frameworks The status of free-lance artists is regulated by the Law on the Rights of Self-employed Artists. According to the Law, these artists are entitled to health, pension and disability insurance, which are paid by the municipalities. Freelance artists are usually organised in different professional arts associations, which keep a register of their status. As of 2010, the Law had not yet been put into force and free-lance artists continue to be treated as any other self-employed professionals. This constantly provokes protests and revolt from art associations. This situation is planned to be changed, following the implementation of the new Law on Culture. The Ministry is planning to put the sub-laws into the parliamentary procedure, with one of the sub-laws redefining relations with self-employed artists, but the Parliament had higher priorities 2010-2012, concerning the requirements of the EU integration processes (more in chapter 5.2). The register of freelance artists is administered by different professional artist unions. During the reign of Slobodan Milo$evi" (1989-2000), many artists left the "official" artist unions and created new, parallel ones. Therefore there were three writers' unions, two publishers' unions, etc., which is creating a problem regarding the registering of freelance artists. Through the open call in 2011, the Ministry of Culture has chosen 31 unions and associations to represent the different fields of arts and culture, which is a good step towards a more systematic approach to the rebuilding of the sociocultural cycles in every sector of culture. This could mean more clear roles and responsibilities for the unions and associations, as well as better and stronger relations with the Ministry of Culture, but also a systematic monitoring of their work. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws
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There are three relevant tax provisions: the Law on the Profits of Legal Entities (RS OG No. 25/2001 amended 80/2002, 43/2003 and 84/2004) entitles them to deduct 1.5% of their income in one fiscal year for donations made to culture; After Profit Tax was amended in 2010 - the amount of deduction increased to 3% of their income in one fiscal year for donations made to culture. the Income Tax Law permits deductions on personal income tax for cultural activities. Artists are allowed a tax deduction of between 40-65% on their earnings for expenses related to their work (without documentation); and gifts to museums, libraries and other cultural institutions are exempt from taxes. The tax rate on the net income resulting from intellectual property rights is 20%.The Income Tax Law (RS OG No. 24/2001) provides a breakdown of the % share of income derived from intellectual property rights that is tax deductible: 65% - sculpture, tapestry, art ceramics, mosaic and stained glass; 55% - art photography, fresco painting and similar arts, clothes design and textile design; 50% - painting, graphic design, industrial design, visual communications, landscaping, restorations, translations; 45% - music performance, movie-making; and 10% - programmes and performances of folk music; and all other activities. After the Income Tax Law was amended in 2002, 2004, 2006 and 2009 (RS OG No. 80/2002, 135/2004, 62/2006, 65/2006, 31/2009 and 44/2009) the % share of tax deductible income derived from intellectual property changed as follows: 50% - sculpture, tapestry, art ceramics, ceroplastics, mosaic and stained glass, art photography, wall painting and other painting in the space with various techniques, costume design, fashion design and artistic processing of textile; 43% - paintings, graphics, industrial design with the development of models, small works from plastic, visual communication works, interior design works and facade architecture, scenography designs, scientific, technical, literary and fiction works, translations, restoration and conservation work, performances of artistic work (playing of instruments and singing, theatre and film acting, recitation), shooting movies and conceptual sketches for the tapestry and costume design. 34% - for the programmes and performances of popular and folk music, production of phonograms, production of videograms, production of TV shows, database production, and all other author and related rights which are not listed. The third type of the tax deductible income (34% share of tax deductible income) was a result of the lobbying of large concert organisers and folk and popular music producers. They were quite successful in their lobbying previous rate for the folk artists was constantly 10%, while the rates for the first two groups were higher (60% and 50% after the changes in 2006). The Income Tax Law does not permit individuals to deduct for contributions to charity. This restrictive tax treatment came into effect in 2001 as a part of general tax system reform. The new Law on Personal Income Tax repealed a system of non-standard tax deductions, which could be up to 15% taxable income. Except for donations for cultural purposes, this tax-benefited treatment had been dedicated also for investments in objects with special cultural, historical and scientific value. Deductions offered, in the Law on the Profits of Legal Entities, on donations to culture are not really considered as an incentive in practice. In addition, the character of cultural donations and types of
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organisations that may receive tax-benefit contributions were regulated by direction. The donations can be made for: production, prevention and research of cultural values and heritage; improvement of conditions for the development of cultural activities; international cultural cooperation; education and research in the field of culture and stimulation of creative work. The types of organisations that may receive tax-benefit contribution are in the field of: heritage, museums and galleries; artistic, literary and other creative work; film industry and video production; archive, library, botanical and zoological gardens and the publishing of books, publications and booklets. The Law on the Profit of Legal Entities also regulates tax exemption for non-profit organisations. According to Article 44, non-profit organisations are granted tax exemption under the following conditions: the income is up to 300 000 CSD (around 2 900 EUR in the year 2011) higher than its expenditure in the year of which the right to tax exemption is granted; the non-profit organisation in question does not distribute the income thus generated to its founders, members, executives, employees or persons associated with them; the salaries paid to employees, executives or persons associated with them are not higher than twice the average salary paid in the business area to which the non-profit organisation in question belongs; and the non-profit organisation in question does not distribute its assets in favour of its founders, members, executives, employees or persons associated with them. Incentives introduced during the former regime have disappeared, such as the matching fund "corporationstate / dinar na dinar". New incentives have not yet been created. At present, all donations (except those given through the government) have a 5% gift tax, even if the donation is made in kind. This represents a huge obstacle, even to large donors of equipment. The institution / recipient usually have to find another donor to cover the taxes to be paid to the state. VAT was introduced in Serbia at the beginning of 2005.The general rate is 20%. A reduced rate of VAT for books, tickets for music manifestations and cinema tickets is 8%. In 2011, the ministry of trade made a decision to grant tax benefit (tax credits) to foreign companies that are producing films in Serbia. The tax credits are considered as a part of initiatives in the framework of Programme of Branding Serbia and on the temporary base (only for 2011). The Serbian Film incentives are: 12% cash rebate on all Serbian labour costs (All salaries and taxes paid in Serbia); and 15% cash rebate on all Serbian expenditure on goods and services for the production of feature films, documentaries, television productions and TV series shot on location in Serbia. TV commercials are not eligible. International producers can apply via a Serbian service production company or a Special Purpose Vehicle a company registered in Serbia for the sole purpose of carrying out a particular production. Expenditures such as fees and salaries paid outside Serbia are excluded, as are big-ticket items such as real estate, marketing costs and producer fees. To qualify for this incentive, productions must spend a minimum of 2 million EUR on qualifying Serbian expenditure. Applications for tax credits will be adjudicated on a firstcome, first-served basis. No cultural testing is required. However, incentives will not be considered for (1) films that contradict the ethics and public order in the Republic of Serbia and (2) productions that compromise the reputation of the Republic of Serbia and / or promote human rights violations, hate speech or pornography.
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5.1.6 Labour laws In Serbia, all artists that are employed in cultural institutions are public servants under the Public Servants Law Regime (2005). The new Law on Culture envisages the introduction of a new model in which artists will be engaged on a contractual basis rather than as employees. Since these steps would cause large dissatisfaction in the field of culture, especially during the financial crisis period, with a large number of unemployed people across the sector, these changes will not become operational until 2013. Although, we are still sceptical about the determination of the decision makers to start the systemic changes, which are not popular, the very difficult current financial situation, as well as the financial projections for the public cultural sector for the next couple of years, will probably push these changes. The alternative would be to close a number of public institutions, or even more severe cutting of budgets. A general change has been made through Labour Law, and Law on Public Administration (2005) which affected artists employed in public institutions and those working part-time in public institutions. There are restrictions on double employment in the public sector that are preventing artists employed by art schools to be also employed by public theatres (which was often the case, i.e., a professor of theatredirecting being, at the same time, an artistic director of the theatre, etc.). This is also regulated by the new Law on Culture and, through the sub laws, types of employment in the cultural and arts sector will be defined (more in chapter 5.2). Collective bargaining agreements exist in the fields of theatre, archives, museums, libraries and institutes for heritage protection. A special section of the trade unions are responsible for bargaining, enforcing and monitoring these agreements. On 29 August 2003, the City of Belgrade signed special collective agreements with all of the relevant trade unions, which cover 1 600 employees in the city's cultural institutions. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
Spain/ 5.1 General legislation

5.1.4 Social security frameworks Initially artists and creative workers were classified under a special category for the purposes of social security (2133/1975 Decree). Ten years later, by virtue of Decree 26/1985, they obtained the same rights and obligations as all other workers. Performing artists and bullfighters were then grouped together under a special heading within the general social security system. Another Royal Decree (2621/1986) made specific provisions for income averaging in view of the considerable monthly fluctuations in artists' income as well as a provision regarding the possibility of early retirement for performing artists in an effort to compensate them when they reached an age when they could no longer perform. All these particular provisions were included in the 40/2007 Act on Social Security related measures which stipulated that in one year the government would update the regulations governing the special employment relationship of artists in public shows. In addition, it would modify the Social Security system that is applicable to these artists, in order to facilitate schemes for making contributions with as
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few breaks as possible and to adapt these regulations to new forms of service provision. This legislation is still pending. The scheme for authors is different as they were considered self-employed workers (2621/1986 Royal Decree). Again, efforts were made to establish a fair level of disability insurance and a retirement plan, considering the fluctuations in the annual income of this group. The self-employed workers statute (20/2007 Act) indicates that competent public administrations can sign agreements with Social Security to reduce the contributions of individuals who are self-employed in craft or arts areas ( chapter 5.1.5 provides information on the various ways of providing tax relief for authors). See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws There are tax exemptions available for institutions from the "third sector", i.e., foundations, associations considered to be of public interest, international development and aid agencies, and non-profit making bodies falling within the terms of the 49/2002 Act on Tax Exemptions for Non-profit making Organisations and on Sponsorship. This piece of legislation establishes detailed exemptions on national and local taxes including rates, local duties levied on businesses, and the municipal tax charged on capital gains from the sale of urban property (This paragraph refers to NGOs). Individuals and companies can also claim an income tax exemption on the amount of money donated to certain organisations such as those mentioned above (This paragraph refers to individuals and companies which invest and donate to NGOs). Regional cultural institutions, public universities and university colleges, the Cervantes Institute, the Ramon Llull Institute and other bodies set up to promote regional languages have similar tax breaks and can benefit from donations. One of the great challenges and normative projects of the current government of the Popular Party is a new Sponsorship Act that promotes greater participation both from individuals and companies in the financing and promotion of culture. The economic situation of the country, with a strong impact on the role of public administrations in culture, has generated a growing debate in Spanish society about the urgent need to increase sponsorship. Beyond the social debate, previous governments of the Popular Party (1996-2004) had included this strategic change in their programmes and today is one of the main objectives of the General Strategic Plan 2012-2015. On several occasions the current Minister has announced his willingness to approve a broad and ambitious act, which involves all sectors susceptible to receiving sponsorship and includes the participation of civil society. However, the elaboration and approval of this act will require coordination with the Ministry of Finance and Public Administration. In the field of culture, the Cinema Act (55/2007 Act) provided a temporary 18% tax exemption for film production. The success of this measure, with the improvement of the industrial sector, led the government to extend it beyond December 2011, the expiration date. For its part, the Historical Heritage Act (16/1985 Act) establishes some exemptions for the temporary importation of certain cultural products, in particular, movable assets that are included in inventories or recognised as being of cultural interest. The severe economic crisis that affects the country led, in July 2012, to the establishment of a series of measures aimed at ensuring budgetary stability and promoting competitiveness (20/2012 Royal Decree Act that modifies the 37/1992 Value Added Tax Act). Among the measures is the increase in "general" and
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"reduced" VAT rates, from 18% and 8% to 21% and 10%, respectively. Thus, cultural goods, such as music CDs and movies DVDs attract the "general" levy of 21%, while tickets to libraries, archives and documentation centres and museums and art galleries continue being taxed at the "reduced" rate (10%). The rise in rates has been accompanied by other additional measures by which certain cultural products and services pay a different tax rate: such is the case of the entry to theatres, circuses and other shows, the services produced by individual artists, digital television services and the acquisition of works of art that now pay a VAT rate of 21% (previously it was 8%). Goods such as books, newspapers and magazines continue paying a "super-reduced" VAT rate of 4%, whilst the services of writers, composers or visual artists, which are linked to copyright, continue to be exempt from VAT. All these measures that deter cultural consumption have been produced with strong opposition from the cultural sector, already heavily affected by public cuts. These reforms have not affected the artists who continue benefiting from a tax exemption on important literary or scientific prizes (Article 7.1 of the 35/2006 Income Taxes Act and Article 3 of the 439/2007 Decree approving the Income Tax Regulations).

5.1.6 Labour laws Spanish law has no a general labour law covering artists or cultural workers. There are, however, a number of regulations affecting artists as producers of culture. They include, for example, labour regulations covering people working in public entertainment. The current Workers Charter passed in 1980 contains special provisions for performing artists, expanded upon in greater detail in a Decree of 1985 (1435/1985 Royal Decree). This Decree establishes a non-exhaustive regulation of the content of labour relations, considering only those aspects that can be treated in the same way in all artistic sectors and leaving the development of the rights and obligations to collective negotiation between the parties to this special relation. At the state level, there are also collective agreements referring to actors and film producers (since 1990), graphic arts and publishing-houses (since 1997), film distributors (since 1997), and audiovisual production. At the level of the autonomous communities, collective agreements have been signed in Catalonia, Madrid, Galicia, the Balearics, La Rioja and Navarre. The 56/2003 Act on Employment (its more recent update was published in July 2012) is also applicable to artists and cultural creators. There is no specific legislation for self-employed artists in Spain. There are, however, a few tax provisions available for self-employed artists related to income tax deductions, income averaging, company tax benefits and reduced levels of value-added tax (see chapter 5.1.5 and chapter 5.1.7). See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
Sweden/ 5.1 General legislation

5.1.4 Social security frameworks There is no comprehensive legal framework for artists in Sweden; general principles for social security
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and taxes apply. There are several artists' unions that represent their members in labour market negotiations. These also function as lobbying groups with the government and the public authorities. In general, artists have lower incomes than the average person, which affects general social security for the individual. Self-employed artists have specific problems vis--vis public health insurance, pensions and unemployment insurance, since their business, often small-sized, is not comparable to the usual trade or enterprise. Some of the specific national or regional grants to individual artists are not taxable (one- and two-year scholarships) and thus, cannot be included in the life- income that relates to their pension. Support is given for intermediary employment centres within the fields of theatre, music, photography and film, for data banks, and for training facilities for professional dancers and actors during periods between job contracts. Work is in progress to introduce more stringent employment criteria. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws The issue of corporate sponsorship in the arts has been very much under debate in recent years, both in the media and in political fora. Culture and Business (Kultur och nringsliv) is a forum especially created to further debate, obtain contacts and experiences from joint projects, and to source financial contributions from the market. So far there are no special Enabling tax deductions for donations to culture, science and other forms of public good have been discussed, especially after the election of a non-socialist government in 2006. The Cultural Policy Commission (SOU 2009:16) concluded that such measures would greatly benefit culture. It should be noted that the Commission's expert from the Ministry of Finance publicly advised against this conclusion. The Commission for Incentives for Gifts which published its report (SOU 2009:59) in 2009 was, furthermore, sceptical of such reforms in favour of any area and entirely ignored all issues relating to culture. A change in this direction is thus unlikely. The general tax system also applies to artists. This means that all costs incurred in order to earn an income are tax deductible, provided that the income is generated from professional activities. Tax deductions outlined by local tax authorities may sometimes be of great importance for the individual artist. Selfemployed artists face a number of problems within the current tax system: for example, basic pensions are calculated on the income generated over their lifetime and as most scholarships or grants are not taxable, they are not included in the overall total of lifetime income. In 2001, the 25% VAT rate on books was lowered to 6% by the parliament.

5.1.6 Labour laws The following list of labour laws are relevant to the field of culture, whether on a national or local level, with regard to private persons, a cultural institution or a free theatre group: Prohibition of Discrimination in Working Life because of Sexual Orientation Act (Swedish Code of Statutes 1999:133); Prohibition of Discrimination in Working Life of People with a Disability Act (Swedish Code of
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Statutes 199:132); Measures to Counteract Ethnic Discrimination in Working Life Act (Swedish Code of Statutes 1999:130); Parental Leave Act (Swedish Code of Statutes1995:584); Public Employment Act (Swedish Code of Statutes 1994:260); The Equal Opportunities Act (Swedish Code of Statutes 1991:433); Working Hours Act (Swedish Code of Statutes 1982:673); Employment Protection Act (Swedish Code of Statutes 1982:80); Work Environment Ordinance (Swedish Code of Statutes 1977:1166); Work Environment Act (Swedish Code of Statutes 1977:1160); Annual Leave Act (Swedish Code of Statutes 1977:480); Employment (Co-Determination in the Workplace) Act (Swedish Code of Statutes 1976:580); and Employee's Right to Educational Leave Act (Swedish Code of Statutes 1974:1981). See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
Switzerland/ 5.1 General legislation

5.1.4 Social security frameworks There is no comprehensive social security framework for artists in Switzerland. This was discussed within the context of the new Federal Law on the Promotion of Culture (2009), and proved to be one of the most controversial issues since Parliament partly took the view that this aspect should be rather part of a revised Law on Social Security. The Federal Law on the Promotion of Culture stipulates (Article 9) that the Confederation and the Pro Helvetia Foundation shall transfer a percentage of the financial assistance granted to creative artists to the individual's pension fund or another form of financial provision. The Federal Council shall determine the percentage (see Article 3 KFG). This issue also takes major priority for umbrella associations, and some initial steps in this area have already been taken. To date, three voluntary Vorsorgeeinrichtungen (pension funds) in the area of film, the performing and dramatic arts, and music have existed; they are all private foundations, some are solidarity funds, while others are run by collecting societies. With the financial support of the Swiss Federal Office of Culture (BAK), "Suisseculture Sociale" (a social capital scheme for artists in need, which acts on the basis of subsidiarity) and "Suisseculture Contact" (an advice centre for artists), have been established. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws The Swiss fiscal system subscribes firmly to the principle of federalism. No uniform legislation for direct taxation is applicable to the entire national territory. In terms of the Swiss concept of the state, fiscal sovereignty resides entirely with the cantons, based on twenty-six different legislations. The cantons are
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also responsible for the assessment of taxes. The federal government levies indirect taxes and direct federal tax. The most important source of revenue for the federal government is value added tax. Special provisions are provided in Article 92 of the Federal Law on Direct Federal Taxation (income tax), including "tax-at-source" for artists living in a foreign country. Otherwise, artists are subject to the same tax regulations as everyone else (for self-employed persons, see Article 27ff. and 125, 2 DBG; for the gainfully employed, see Article 26, 125, 1 and 127, 1 DBG). Although private support for culture is quite high in Switzerland compared to other European countries (see chapter 3.2), there are demands to introduce additional incentives to attract even more private investment in order to relieve public budgets. Several laws need to be amended to achieve this goal, among others Swiss Foundation Law (see chapter 4.3), Fiscal Law, and Lottery Law. Also, the attitude of the public administration toward private investors will have to change if an environment conducive to private investment is to be created. Donations or contributions in the form of sponsorship are tax deductible. Cantonal administrations are being encouraged to pursue a more liberal tax policy toward foundations and private sponsors. Tax deductions vary considerably among the cantons. On the federal level, the deduction amounts to 10% of net profits. The cantons are able to stipulate their own percentage levels and conditions for tax exemptions, thereby making it possible for deductions to amount to 100%, such as in the Canton of Basel. The Lottery Law is currently under review, (see chapter 4.3). Lottery funds constitute a major share of public cultural support. Conclusive assessment and a subsequent ruling are unlikely to be reached any time soon. At present, two large lottery companies (SwissLos and Loterie Romande) hold exclusive rights to run lottery games, as granted by cantonal authorities. This situation has come under increasing criticism by the promoters of a free market policy (see chapter 4.3).

5.1.6 Labour laws Labour relations, including employment contracts, are regulated by the Swiss Code of Obligations (OR, in particular Article 319 ff.), and are monitored by professional artists associations (see also chapter 5.1.4). See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
United Kingdom/ 5.1 General legislation

5.1.4 Social security frameworks There are no specific social security measures governing the cultural sector. See chapter 4.2.9 and chapter 5.1.6.
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See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".

5.1.5 Tax laws Arts & Business (A&B) advocates the mutual benefits of partnership between the private sector and the arts. It runs a number of programmes helping to bring the two together and business investment incentive schemes in Scotland, Wales and Northern Ireland. A&B (http://www.ArtsandBusiness.org.uk) offers arts specific advice on the tax treatment of private sector support. In relation to private sector finance, the British model has traditionally focused on the role of business in supporting the cultural sector, but several developments have encouraged a new view of the possibilities of increasing individual support for the arts. New models of donor involvement, known as venture philanthropy, have encouraged the Treasury to consider implementing more advantageous tax regimes, since tax planning has an obvious attraction for the individual donor. This new way of giving to charities took effect from April 2000 as part of the government plans "to get Britain giving". Following a review of Charity Tax Law, the Chancellor of the Exchequer proposed major simplifications and improvements to the treatment of gifts to charities including an introduction of a tax efficient way to donate gifts of shares. The changes were made in part to encourage private support, to complement the public money given to the arts, museums and heritage, and to increase the amount of money going to charities. Many cultural organisations in the UK have charitable status and are thus able to take advantage of these changes. There are a number of schemes to encourage public-private partnerships using tax relief. For example, if a business temporarily seconds an employee to a charity or educational establishment, such as an arts organisation, the salary cost and other expenses which the employer would normally continue to pay will continue to be tax deductible. An Enterprise Investment Scheme was introduced by the government to help small companies raise money. It offers income and capital gains tax breaks to investors of at least GBP 1 000, though it is potentially high risk. The entire landscape has changed in regard to tax support for film. A new version of the tax credit scheme came into law with the passing of the 2006 Finance Act. To qualify for tax relief a film needs to: be made by a UK film production company; be intended for theatrical release; pass the revised Schedule 1 to the Films Act 1985 (the cultural test for British films), be administered by the UK Film Council, or be made under one of the UK's film co-production treaties, and; have at least 25% of its budget incurred on UK expenditure. In order to pass the cultural test, a film maker needs to demonstrate that the project will have "British qualities" across four categories: A) Cultural content (setting, characters); B) Cultural contribution (heritage, diversity); C) Cultural hubs (photography, post-production); and D) Cultural practitioners (director, actors). If all these criteria are met the film is eligible for tax relief. British films costing GBP 20 million or less are eligible for an additional tax deduction of 100% of qualifying UK expenditure and to surrender losses in exchange for a cash payment of 25%, amounting to a benefit worth at least 20% of qualifying production costs. Other British films will receive an additional deduction of 80% of qualifying UK expenditure and will be able to surrender losses in exchange for a cash payment of 20%, amounting to a benefit worth typically 16% of qualifying production costs. Film Tax Relief is offered on UK expenditure only. The definition of UK expenditure is "expenditure on goods or services that are used or consumed in the UK". Once a film is certified, relief is claimed by a company submitting its tax return - however many of those films would still be at an early stage and might not be claiming tax relief for another year or
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more. During the financial year 2007-08, HM Revenue & Customs estimate that they received approximately GBP 100 million of claims for the film tax credit. Fiscal measures are essential to countering the market failures associated with film industries across the world, and the UK Film Council considered it was essential that the UK's suite of incentives preserved levels of inward investment and worked to promote domestic production. The previous government completed its review of film tax incentives in March 2006, and the industry has welcomed the new measures which will make the UK an attractive place to make films. The industry has reported that the new tax credit is working much more efficiently and effectively for inward investment and domestic UK film production. Through the European Convention on Cinematographic co-production, films which are funded by the Northern Ireland Screen Commission, and that carry out either principle photography or post production in both Northern Ireland and the Republic of Ireland, can take advantage of both the Republic's Section 481 tax relief for film and the UK's film tax credit scheme (as long as they spend no more than 80% of their budget in one territory and no less that 25% of their budget in the UK and no less than 20% in the Republic of Ireland). However, due to both "use and consume" rules, producers can only receive the maximum benefit of one of the tax schemes; they can no longer enjoy the full benefits of both schemes. The Acceptance in Lieu scheme, operating since 1947, allows a person who is liable to pay inheritance tax, capital transfer tax or estate duty to settle part, or all of the debt, by disposing of a work of art or other object to the Board of Inland Revenue for public ownership. To qualify for exemption, an object must be of national, scientific, historic or architectural interest. These are often antiques, works of art etc, and also archives. In 2006-7, the UK gained art works and heritage items to the value of GBP 25.3 million under the AIL scheme. It is managed on behalf of the government by the Museums, Libraries and Archives Council (MLA). Individuals offering objects under the Acceptance in Lieu Scheme have a legal right to remain anonymous; few choose to be named. The book sector is specially treated for VAT purposes, being zero rated, as are some artist's supplies. In addition, since a European Court of Justice ruling in 2002, bodies administered on an "essentially voluntary" basis have been exempt from paying tax on admission charges - including theatres, museums, heritage and other cultural organisations. The clarification meant a number of organisations benefited from a significant tax rebate at that time. Inland Revenue has ruled that grants and awards to artists are taxable. Creative people, such as writers, composers, playwrights etc, can arrange with the Inland Revenue authorities to have their tax spread over a period of years if they can demonstrate that their income fluctuates significantly as a result of spending more time some years on the creative process when their income is lower than normal. However, the Inland Revenue does regard "buying time" bursaries as tax free. Since 2000, and under the provisions of the 1989 Gift Aid Act, non-profit organisations whose income was used wholly for heritage upkeep could claim Gift Aid tax relief on donations - worth an extra 28 pence for each GBP 1 donated. After a national consultation to improve the Gift Aid initiative in 2007, the government recently announced that charities could claim Gift Aid at the new basic rate of 20%, but they will also be entitled to a transitional relief worth 3p for every GBP 1 donation received under the scheme. This transitional relief, applicable from 6 April 2008 to 5 April 2011, aims to give time to charities to adapt to the new basic rate, so they can continue to receive 28 p per GBP 1 donated. Higher rate tax payers can claim the difference between the lower rate tax claimed by the recipient charity through Gift Aid and the higher rate tax they have actually paid. Other changes introduced to the Gift Aid scheme are to improve the HM Revenue & Customs audit processes to help reduce administrative burdens, as well as to encourage greater use of the scheme through new guides and training opportunities directed to the
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charity sector. In December 2010 the new Coalition Government indicated that there will be a Treasury led review of tax incentives in 2011.

5.1.6 Labour laws Artists fall within the general body of case law in this area. The UK Government has sought exemption from EU Directives concerning the maximum number of hours employees can work. Arts Council England commissioned the Institute for Employment Research and the Centre for Educational Development, Appraisal and Research, at the University of Warwick, to undertake research on artists' labour markets and the effect of tax and benefits systems. The report, entitled A balancing act artists, labour markets and the tax and benefits system, was published in December 2002 and presents findings from a series of focus groups with practising artists, which explored their experiences of employment, the impact of UK tax and social security systems on their career and business choices, and their ability to sustain viable professional lives. Analysis of artists' labour markets was also undertaken, examining employment status, working patterns, earnings and take-up of social security benefits - the report is available at: http://www.artscouncil.org.uk/documents/publications/phpLI8ihP.pdf. Section 6 of the Child (Performances) Regulations Act 1968 was revoked in 2000 - this removed restrictions that prevented Local Education Authorities (LEAs) from granting a licence allowing a child to take part in a public performance if the child would, in the twelve months before that performance, have taken part in other performances on more than a certain number of days. Concern has been expressed that it leaves children more open to exploitation by the performing arts industry, particularly since there are few guidelines on rehearsal time and LEAs often do not have the capacity to police the laws. The difference in interpretation from one LEA to another also causes producers problems when negotiating with them to avoid contravention of insurance policies. A government commissioned report on licensing laws relating to performances by children was published in March 2010. The report, by Sarah Thane CBE, concluded that existing regulations were outdated and inconsistently applied across the country. It is expected that the government will consult in 2011 on changing the legislation in England, including reducing the administration involved, especially for amateur groups. In 2006 legislation was approved governing those working with children (and vulnerable adults) on a "frequent" (i.e. once a week) or "intensive" (four or more days in a 30 day period) basis. This required the vetting of such individuals (including checks with the Criminal Records Bureau) before they came into contact with young people. Although concerns were expressed by artists whose work brought them into contact with children, the provisions have yet to be fully implemented. It is understood that the new government may review the current regulations to make them less complex and less onerous, while ensuring suitable safeguards. See also comparative information provided in the Compendium "Themes!" section under "Status of Artists".
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Council of Europe/ERICarts, "Compendium of Cultural Policies and Trends in Europe, 14th edition", 2013 | ISSN 2222-7334
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Austria/ 5.1 General legislation

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elaboration by Associazione per l'Economia della Cultura.

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Norway/ 5.1 General legislation

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Income Tax Act (1999); and VAT Act (1969).

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