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This tax causes much difficulty for performers who tour abroad and the rules for its application are not well understood, even by the tax authorities in some countries. Irregularities have been taken to the European Court of Justice in several cases.

But, since January 1 2007, after much lobbying from the cultural sector and by specialist tax advisers, the authorities in the Netherlands have acknowledged that the tax revenue from this particular group of taxpayers is too low and the administrative burden involved in collecting it is too high to justify it.

Therefore, they have taken the radical step of abolishing it. Certain conditions apply: performers from abroad must provide the NL promoters with information to justify that they will be reporting the income to the tax authorities in their own country. And the exemption only applies to artists resident in the 82 countries with which the NL has a bilateral tax treaty.

OTM has reported on this tax in its Tax and Social Security document (currently being updated) and the situation is well explained in the 'Study on Impediments to Mobility in the EU Live Performance Sector' Pearle* Study.

We support the Dutch initiative and urge other countries to follow their example.

More information: www.allarts.nl

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