Revenue to review artists’ tax exemption

The Government will shortly begin a review of the artists’ tax exemption in advance of Budget 2016, although Finance Minister Michael Noonan has pointed out that the majority of those claiming the exemption earn less than €40,000, according to the latest available figures.

Revenue has the power to determine that certain artistic works are original, creative, and generally recognised as having cultural or artistic merit.

For 2015 and subsequent years, the first €50,000 per annum of profits or gains earned by writers, composers, visual artists, and sculptors from the sale of their work is exempt from income tax in certain circumstances

Mr Noonan was asked by Socialist Party TD Ruth Coppinger about his views on ending the exemption “for artists who are already in receipt of large incomes and funding”.

Mr Noonan said 2012 was the most recent year for which information on those who claimed artists’ exemption was available.

“In that year, approximately 44% of claimants had incomes of between €0-€20,000, while almost 20% of claimants had incomes of between €20,000-€40,000,” he said.

“27% had incomes of between €40,000 and €100,000, while under 10% had incomes in excess of €100,000.”

He pointed out that meant approximately 64% of people who availed of the tax break had incomes which fell below the current €50,000 limit for exemption.

“My officials will be carrying out a review of the artists’ exemption in advance of Budget 2016.

“The terms of this review have not yet been finalised but I expect it to commence shortly.”

The exemption threshold was only raised to €50,000 from €40,000 in Budget 2015.

Arts Minister Heather Humphreys said increasing the threshold was a recognition of the need to support artists who are “the bedrock of our culture”.