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UNIVERSITY OF ARTS IN BELGRADE

Postgraduate Studies of Cultural Management and


Cultural Policy in the Balkans

COURSE:
CULTURAL RIGHTS

PROFESSOR:
Slobodan Markovic, Ph. D.

FINAL PAPER:
Comparative Analysis of the Sector specific legislation/Status of Self-employed Artists
In all States from the Compendium

STUDENT:
Milica Lazović

Belgrade, September 2007.


Compendium of Cultural Policies and Trends is an information and monitoring system on
cultural policy measures, instruments, debates and cultural trends. It has been created as a joint venture
between the Council of Europe, ERICarts and a community of practice of independent cultural policy
researchers, NGOs and national governments. This extensive and constantly updated web site consists of
36 cultural policy profiles, presented through less or more detailed description, depending on the country in
question and legislations on culture which it encompasses. In this paper, I will try to make a comparative
analysis of the sector specific legal provisions in the cultural fields, described in all countries present on
this web site, which is a total of 39.

While analyzing diverse legislations which exist in all this countries, we can notice that there are many
different approaches and ways in which culture exists as a category within the general legal system of the
country.

The main legal provisions in the cultural field of every country are classified and displayed through 3 main
sections: general legislation, legislation on culture and sector specific legislation. General legislation
consists of overviews of legal competence for cultural policy making for every individual country available
(constitution, division of jurisdiction, allocation of public funds, social security frameworks, tax laws, labor
laws, copyright provisions, data protection laws and language laws), outlines of legislation on culture
which vary from country to country (some states may have hundreds of laws have while others may have
only one Culture Act), and sector specific legislation, which applies on concrete, individual cultural fields
(visual and applied arts, performing arts and music, cultural heritage, literature and libraries, architecture
and environment, film, video and photography, culture industries, mass media, legislation for self-
employed artists, and other areas of relevant legislation). Of course, we can detect many differences
between approaches and the amount of space and attention given to culture within a certain country,
depending on the specifications of every individual law. However, we will attempt to group them according
to some common characteristics and methods.

In the field of Sector specific Legislation/Legislation for Self-employed artists, every country has a
different story. For the beginning I will try to write a little bit about every country and its’ law in this
special area of Cultural legislation.

Albania has no special legislation on the status of the artists. The introduction of the coherent tax
system to increase state finances and combat tax evasion (estimated at 50%) is still the primary objective of
tax policy. The relationship of trust between the citizens and the state, which is the basis for a functioning
tax system, is still suffering from the disturbances caused by the pyramid financing collapse on savings and
investment and consequently on gross domestic product and tax revenue.
In September 1997, the new government set up a tax system which introduced indirect taxes (on
alcohol, tobacco and fuel) and entrusted a special office with the collection of taxes.
The application of a single VAT rate, which was raised from 12,5% to 20% in September 1997, is
datable especially from the point of view of the book market. According to the Association of Albanian
Publishers, only 5 or 6 publishing houses pay their VAT regularly. This evasion is an indirect form of unfair
competition affecting decisions on book prices. Duty on paper and other imported materials is also set at
20%. The cost of paper (and production costs in general) appears to be comparatively higher than the
European average. Albania has still stipulates that imports of cultural products should be tax exempt.

In Austria, 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 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 refunds and improvements (copyright, social security
scheme for artists and other social benefits) have been achieved by umbrella organizations, interest groups
and collective societies.
Since January 2001, when the new Law on Social Security for Artists came into force, freelance
artists are treated the same as other self-employed professionals, which means that they must pay their
statutory social security insurance if they earn more than 6 453 euros per year. 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: statutory insurance
for freelance work and any other social security insurance payments, which result from other part-time and
free-lance work, the contribution to the social security system is relatively high compared to the total
income.
A working group with representatives of all parties involved in this matter discussed the
possibility of special regulations and helping artists with these payments. The new law set up a Social
Security Insurance Fund for Artists, which grants artists a pension supplement of up to 85,5 euros per
month, if their income is between 333 euros and 1635 euros per month. 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). This new Social Security Insurance Fund
for Artists, paid out euro 4,6 in supplements. From 2000 until 2003, this fund was supported by the Federal
Chancellery/Art Department.
The new Social Security Insurance System was widely criticized by artists and their professional
associations, because of the exclusion of artists on very low incomes. Further demands are to secure
obligatory contributions to the fund by the federal government and supplement not only for pensions, but
also for health and accident insurance.

Azerbaijan, on becoming independent, has opted for a market economy. Free enterprise is a
central element in this, and a national privatisation programme was implemented in two stages. The
establishment of a market economy in Azerbaijan, made it neccesary to rethink social security and to
introduce a whole new welfare strategy. Within a short space of time, over ten laws were passed, extending
social security to broad sections of the population. Altough there are no special legal provisions for cultural
workers as separate professional group in Azerbaijan, and their activities are regulated in general by
legislation for private enterpreneurship, there are a number of provisions in the constitution and the Law on
Culture that directly concern and defend their interests.

In Bulgaria, artists pay taxes under the Personal Income Tax Act, which allows them to deduct
50% of their expances from taxable income received for the creation of works of art, science and culture,
folk arts and crafts, and copyright royalties. Furthermore, taking into account the specificy of creative
work, the legislation provides an oppurtunity for income averaging derived from creative work undertaken
in the course of more than one year (e.g.the writnig of a book), but not exceeding four years. Artists thus
avoid the progressive annual income tax.

Belgium has taken measures 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:
1. artists are treated either as employees or as self-employe 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;
2. children and holiday allowances for artists, which are covered by employees regulation, will be
paid by the federal government. This will simplify the payment of the allowances caused by
working for different employers;
3. those who infrequently hire artists (e.g.for an occasional show in a cafe 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 bueraux, mostly interim offices, must be recognized by the
regional authorities.
The joint committees (JC) include an equal amount of employer and amployee organization
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 labor conditions. The JC assignments consist mainly of concluding collective
labor agreements, preventing or solving social disputes and advising on policy.
In principle an employer doesn’t 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:
1. PC227 (audiovisual sector office workers)
2. PC303 (film company employees including office workers)
3. PC304 (employees including office workers of entertainment companies, including music and
performing arts)
4. PC329 (employees including office workers in the socio-cultural sector)
A collective labor 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 in question. The sectorial CLAs are mainly included 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 employee
cannot divert individually from this type of CLA. A major example in the Music CLA concluded in
PC304 , 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
organizations subsidized by Flemish Community.

In Canada certain deductions to the Income Tax Act (1985) are in effect for visual artists
and writers, and performing artists. Visual Artists and Writers who are self-employed, are entitled to
deduct reasonable expences incurred in connection with earning income from their business, including
work space, in-home expences, and professional membership dues. Visual artists and writers who are
employees , can deduct, within certain limitations, their expences paid (e.g. advertising and promotion,
travel expences) to earn employment income from „qualifying artistic activity“ which includes:
1. creating (but not reproducing) paintings, prints, etchings, drawings, sculptures or similar works of
art;
2. composing a dramatic , musical or literary work;
3. performing a dramatic or musical work as an actor, dancer, singer or musician;
4. an artistic activity in respect of which the taxpayer is a member of a professional artists’
association that is certified by the Ministry of Communications, now the Minister of Canadian
Heritage.
Performing artists who are self-employed can deduct reasonable business expences, including
the following: insurance premiums on musical instruments and equipment, the cost of repairs of
instruments and equipment, legal and accounting fees, union dues and professional membership dues,
an agents’ commission, publicity expences, transportation expences related to an engagement, cost of
music, acting or other lessons incurred for a particular role or part or for the purpose of general self-
improvement expences, subject to certain limitations (e.g. advertising and promotion, travel expences).
An employee, who is employed in the year as a musician and is required as a term of the employment
to provide musical instrument for a period of year, may deduct certain costs related to the musical
instrument (e.g. capital cost allowance, amounts for maintanace, rental and insurance of the
instrument). It should be pointed out that both employed and self-employed artists may make such
deductions only against their self-employed artistic income. This provision applies to both visual
artists and writers and to the performing artists. The deduction related to musical instruments for
performing artists is the only one that does apply to artists’ employment income.
Artists recieve an income tax credit, calculated on the basis of fair market value, for a gift to
the institutions and public authorities designated under the Cultural Property Export and Import Act
(1985), which regulates the import and export of cultural property and provides special tax incentives
to encourage Canadians to donate or sell important objects to the public institutions in Canada. An
independant, administrative tribunal certifies cultural property for income tax purposes by making
determinations with respect to the „outstanding significance and national importance“, and the fair
market value of objects or collections donated or sold to the museums, archives or libraries. It is a tax
credit scheme for „donors“ of cultural property that may include an artist if the person actually owns
the artwork at the time of the gift, but the scheme itself is open to any taxpayer in Canada, who wishes
to make a gift to public institutions, Arts service organizations recognized by the Minister of Canadian
Heritage and Minister of Revenue as having charitable status, may issue receipts for income tax
purposes to persons who make gifts to associations. Income averaging measures have not been
introduced to date.

Croatia has in the domain of legislation for self-employed artists, special laws which
regulate:
1.The foundation and work of art organizations
2.Measures to stimulate cultural and artistic creativity
3.The process to guarantee the rights of independent artists
The legislator has acknowledged the special status of independent artists in comparison with other
workers. Although the law prescribes a revision of their status every five years, the number of
independent artists for whom health and social security benefits (including pension) were paid for by
the budget, has been constantly growing over the past years. With the recent changes in the by-laws of
the Association of Independent Artists, a more efficient system was put in place including the
introduction of ceiling set at 5000 HRK per month. This means that independent artists earning less
then 5000HRK per month, will continue to receive health and social security benefits paid from the
state budget. Those which earn more than this amount, will no longer be entitled to additional state
support.
Independent artists have the right to retirement and disability insurance and to health
insurance. Contributions are paid from the state budget.
Although the legal incentives exist to encourage private support for culture, it can still be
considered „marginal“ compared to the funding provided by the piblic sector. The same is true for
foundations and funds, despite the Law on Foundations and Funds, that was passed in 1995.
Independent artists have the right to receive specific tax benefits. An income of less than
20000HRK a year is not taxed (approximately 2 740 euros). Compensation for per diems and travel
expenses is not considered part of the income. 25% of the authors’ fees are not taxed, and another 40%
are recognized as 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 donors’ total annual income are
recognized as such by law, while donations exceeding this sum must have a certificate issued by the
Ministry of Culture.
A zero VAT rate on books has been introduced and additional taxes on cinema tickets have
been abolished. Regular VAT rate of 22% applies to other cultural goods and services. To date, much of
the debate on the impact of EU enlargement on culture has been focussed on tax policies and possible
re-introduction of a higher VAT rate on books.

In Denmark , concerning the field of sector specific legislation, there are in general 3 levels
of legislation which are regulating and defining the overall aims of the cultural institutions and
activities in the specific fields of art and culture in Denmark.
1. the general law of theatre, music, cultural heritage, literature and libraries, film, radio and TV etc.
Which defines the overall aims, decision-making structures, competences etc. Of the institutions in
the different fields;
2. the laws in the Danish Art Foundation (State Kunstfond) and the Danish Arts Council (State
Kunstfond) which states the specific aims and support-schemes to the individual creative artist and
different fields of arts in general.
There is no special legislation for the self-employed artists other than the general law, for example the
tax laws.

Legislation for self-employed artists in Estonia, has been recently created by the adoption of
the Act on Creative Artists and Creative Artists’ Unions, which entered into force on 1st January 2005.
It grants freelance artists the right to receive tax deductions from the income earned by creative work,
in correspondence to documented out-comes related to their creative work. It also includes the right to
income averaging over several years. Even before the new legislation, these rights were applicable to
artists who have registered themselves as individual enterpreneurs. In addition, the new law guarantees
income supports equalling the Estonian minimum wage up to a period of six months for freelance
artists lacking other income. The new legislation gives the associations of cultural workers, or the so-
called Creative Unions, the reponsibility of defining the persons and types of income that are eligible
for these benefits.

Finlands’ main legal framework pertaining to the direct support to the arts and artists and its
organization is based on the Act on the Organization of Promotion of the Arts and Art Professors and
State Artists Grant Act. In addition, the Act on State Guarantee: for Art Exhibitions provides indirect
support measures that facilitate the dissemination of the creative work.
The framework for artists aims at overcoming economic and social handicaps due to the
atyipical nature of artistic work. A major issue is income and company taxation. Attempts have been
made to improve the tax treatment of grant and copyright income and to introduce the right to income
averaging (including tax deductible costs) over several years.

Since 1st January 1977, in France, artists-authors benefit from a specific social security
scheme which stipulates : although artists-authors are self-employed, at the end of their second year of
activity, they become entitled to social security benefits under the same conditions as salaried
employees.

In Georgia there are no currently available information on the legislation for self-employed
artists.

Germany has the most important law for independent artists, which is called Artists’ Social
Insurance Act (KSVG) which came into force on August 2nd, 1981. It is based on the proven fact that
most independent artists and journalists are in an economic and social situation which demands a
similar protection as that of employees, for which a general compulsory insurance exists and to which
employees and employers contribute equally. With the KSVG, the legislator has created the
compulsory insurance which allows freelancers to participate in the social pension, health and old age
care insurance. Companies which exploit the works of artists and journalists/authors and Federal
Government pay 50% of the contributions to the Artists’ Social Insurance Fund (KSK) , the other half
comes from the independent artists and journalists. The contributions of the „exploiters“ are levied by
way of percentage of artists’ social contributing on all companies and institutions, which regularly
acquire and market artistic works/services. The amount of the contributions which the KSK deposits at
the insurance is allocated according to the prospective annual income of the insured persons in a
calendar year.

Sector specific legislation in Greece are understanding the collective agreements for
performing artists, such as actors, and it was 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.
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 for
recognized writers and artists, however, the amount paid is symbolic in comparison to other pension
plans.

Holy See doesn’t have any sector specific legislation for artists. However, John Paul II’s
2000 Letter to Artists contains a statement of principle on the relationship between the Church and
artists.

Hungary also doesn’t have any special laws on the arts or artists. Concerning the social
security frameworks, Hungary has gone a far from the socailst era, when nearly all cultural actors were
either civil employees or as members of the monolithic artistic associations enjoyed benefits
comparable to salaried persons. The most difficult task has been to transform the system of health care
and pension plans of so-called „BT“. This limited partnership company is simple and cost effective to
set up and run. A BT must have at least two signatories, one „internal“ and one „external“. Social
protection benefits for members of the same family, whether they are working or not.
Basic healthcare costs and maternity allowances are covered by the minimum social insurance
payments.
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.

Legislation for self-employed artists in Ireland, is arranged in a way that the artists 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. This was generally perceived as an imaginative piece of legislation, which has been
lauded internationally. 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 Arts. Council bursaries, payments
of annuities under the Aosdana scheme and forwing earnings. While this scheme was capped at euros
250 000 in the 2006 budget, after a lengthly public debate, it remains in operation. Section 195, Taxes
Consolidation Act 1997 empowers the Revenue Commission to determine with reference to guidelines
drawn up by the Arts Council and the Department of Arts, that works are original and creative and thus
of artistic or cultural merit. This provision applies that almost 6000 applicants have been approved.
There is no upper limit to eligibility and it is estimated that this scheme cost the Exchequer euros 30
million in 200 with the rise in cost since 1994 being of the order of 40% per year.
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 reducted to 10% or to zero in the case of those
countries (over 30 of them) with which Ireland has Double Taxation Agreements.

Italy has no special laws or legal frameworks for self-employed artists.

Lavia also doesn’t have any comprehensive legislation which provides a legal framework for
artists and guarantees their social security.

Liechtenstein has no status of the artist legislation covering self-employed artists.

The main legal document dealing with self-employed artists in Lithuania is the Law on the
Status of Art Creator and Art Creators’ Organizations (2004). It regulates provisions to obtain the
professional status of „art creator“, his/her social security, state’s support to art creators and their
organizations.

In Macedonia, according to the former Law on Independent Artists (1982), the legislator
acknowledged the special status of independent (unemployed) artists in comparison with other cultural
workers. According to this law, the Ministry of Culture is the one that distinguishes between
independent professional and amateur artists. Every person, regardless of age, sex, education and
religion has the freedom and the right to engage in creative work. The law defines an artist as a person
who creates or performs an authored artistic activity.
Independent artists are responsible for paying their health, retirement and disability insurance
taxes. However, the Ministry can provide their health, retirement and disability insurance taxes.
However, the Ministry can provide them with some financial resources from the budget to cover these
taxes. The Minister of Culture decides which individuals will receive these funds based on specific
criteria including the type, scope and quality of creative work, in a procedure and a manner determined
by law.
In the year 2000, a Book of Rules was published. It outlines the selection criteria to be used in
the allocation of public funding to independent artists; derived from the budget of the Republic. An
annual competition is announced each September in the newspapers. In 2001, 31 independent artists
were successful; 39 in 2002 and the same number (39) in 2003.
Malta has no Status of the Artist Legislation or an Arts Promotion Act in Malta. In July 2003,
a group of visual artists organized under the association of Artists. The venture would have definitely
helped to provide a more professional status for Maltese artists, writers and performers, and was
expected to pave the way for them to establish a hard-edged socially significant profile. Unfortunately,
by 2005, the matter had died down.

Moldova has no specific laws or legal frameworks in place for self-employed artists.

In Monaco there is no specific legislation concerning self-employed artists, and there is no


income tax.

Netherlands has general laws (including social security legislation) related to independent
enterpreneurs and also to artists. Specific regulations are indicated in the Artists Income Act (1998).
The Artists’ Income Scheme Act provides artists with a basic income (70% of wellfare
payments). However, artists can still work and sell their paintings and collect a value of up to 125% of
the income they receive via this Act. In addition to legislation, the government has many funds that
provide support to the arts. For example, the Literature Fund encourages the production of Dutch
language literature by offering scholarships to literary writers and translators, extra payments above
their normal salary, start-up grants and travelling scholarships. The Creative Music Fund provides the
same kind of support.

Norway has some legal measures in terms of fees and compensations which partly constitute
the economic conditions for individual artistic activity:
1. The Turnover of Works of Visual Arts Levy Act
2. Remuneration for the Public Performance of Performing Artists Act
3. Norwegian Fund for Composers Act
4. Remuneration for Lending by Public Libraries Act
5. Remuneration for the Exhibition of Visual and applied Arts Act (the revenues are used to support
foundations for visual artists, composers and authors)
6. Copyright Act
7. Income Tax Act
8. VAT Act

In Poland there is no comprehensive legal framework for artists. 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. Recently, the governments’
attempt to dismantle the provision became a subject of animated public debate. Artistic and creative
circles have initiated a firm protest against the plans. The objection raised by creative workers was
supported by the President Lech Kaczynski. As a result of these protests, their tax privilege has not
been changed.

Concerning the field of Legislation for self-employed artists in Portugal, there is no overall
legal framework for artists in Portugal.
The setting of the Operational Programme for Culture, benefits artists directly or indirectly
through its measures for the network of cultural spaces, the use of new information technologies, the
broadening of audiences, the financing of „immaterial projects“....

Romania has several Laws on the matter of Legislation for self-employed artists:
1. Law no.195/2001 on Volunteers amended by Law no.629/2002
2. Law no.118/2002 setting up the meritindemnity (monthly lump sums granted to artists/cultural
workers for outstanding achievements), amended by EGO no.69/2003
3. Law no.53/2003- Labor Code subsequently amended
4. Law no.109/2005 establishing the indemnity (this indemnity supplements the existing pension
schemes) for the free-lance activity of Romanian interpreters and performing artists.
Russia had in Soviet times, special system: membership in a professional union was equal to
employment for artists and gave them all related rights. In modern Russia, citizens are free to be
employed or not, while in the Labor Code self-employment is not adressed. On the whole, many of
those who were self-employed consisted a part of the „shadow economy“ in the 1990s (and in some
way remain there still) as their revenues were hidden. There are deductions for the material used.

San Marino at the moment has no general legislation for artists, nor a specific law for the
promotion of arts.
Law no.6 of 1983 is the only provision regulating arts in public buildings. Whenever San
Marino public bodies decide to construct new public buildings or restore old buildings, 2% of the total
projected expenditure must be allocated to works of art. In case the inclusion of paintings and
sculptures is not possible, the 2% allocation will be destined to movable works of art to supplement
internal furnishings.
In practise, however, this Law has not always been fully complied within the constitution of
new buildings, which, over the last twenty years, has considerably increased. The newly established
International Centre for Contemporary Art NUA, promoted by local artists and cultural operators, is
striving for application of this law and for the definition of artists’ professional status. In the last years,
also ASART, the San Marino Association of Artists, turned to government bodies to make them aware
of this need. So far, however, the numerous promises have not translated into reality.
Under Government Decision no.35 of 1995, artists are included in the unemployment
schemes as professionals when in possession of a high school diploma. On the contrary, artists not
having any diploma but only natural skills and talent are registered as self-employed. As self-
employed, they do not have access to average income, flat-rate or agreed taxation schemes. Taxation
rates for artists employed by the state are fixed according to income brackets.

Serbia is currently debating the new legislation for self-employed artists. If enacted, only
free-lance artists, who are not able to earn a certain minimum income, will have the right to receive
state support.

Slovenia has specific measures for self-employed persons in the cultural sector including
recognition of their freelance status for tax purposes and socail security. The bases for granting these
privilees are exceptional achievements and the government’s decision to encourage growth in the
number of professional artists. This special status is awarded for three years and may be extended. In
2005, 1546 self-employed artists out of 2 341 registered had been given this special socio-economic
status which cost in 2005 4,2 million euros or almost 3% of national funds for culture.

Spain has 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. In addition, artists benefit from a tax
exemption on important literary or scientific prizes.
The Intelectual Property Act obliges copyright societies to set up welfare and support services
for „authors, performimng artists or cultural workers“, either themselves or through third parties.
Societies are to spend 20% of their copyright fees on such services. Some companies, such as SGAE
and VEGAP have set up special foundations to fulfil three obligations- these are the Authors’
Foundation, the Art and Law Foundation and the AISGE Foundation.

Sweden is improving the legal, economic and social conditions for artists , and that is the
number one priority of the governments’ main cultural policy. A programme of measures to improve
artists’ working conditions was one of the most important features in the Cultural Plicy Bill presented
by hte government in the autumn of 1996. Since then, four commissions have been working on this
task, with their efforts focused on providing better compensation for artists work and to stimulate the
labor market for artists, in order to increase demand.
The general tax system also applied 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 for studios, equipment, travel...may sometimes be of
great importance for the individual artist. Self-employed 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.

Switzerland doesn’t have a comprehensive framework for artists. This issue has been of high
priority for the umbrella associations for many years and some initial steps have already been taken.
Until now, three voluntary Social Welfare Institutions in the field of film, dramatic art and music have
been in existence- all of them private foundations and some solidarity funds, some of them run by
collecting societies. With financial support of Federal Office of Cultural Affairs (BAK), „Suisseculture
Social“ ( a socail capital for artists in need, which acts subsidiarily), and „Suisseculture Contact“ (an
advice centre for artists) have been established.
In the context of the development of a new federal law on culture, specific solutions for artists
in the social security system are to be discussed.

Ukraine has in the field of Legislation for self-employed artists, the Law on Professional
Artists and Artistic Unions (1997) which regulates relations between artists unions and government,
envisages government subsidies to support these organizations, which they distribute partially to
support their members.
There is no arts promotion Act or other provisions encouriging self-employment of artists.
Artists self-employment, according to Ukranian laws, is equal to all other private business activities.
There are no specific tax breaks for artists or other benefit schemes.

In the United Kingdom there is no specific legislation concerning artists’ employment.

After analyzing Sector specific Legislation on Self-employed artists we can conclude


that the two distinct situations- employment and self-employment- have received unbalanced attention
from regulators. One of the main reasons is given by sheer numbers: there is only a small percentage of
active people which are self-employed and an even smaller percentage that conduct an independant
creative activity. In addition, during the communist regime, almost all creators, with some notable
exceptions, were employed on the basis of labor agreements, being subjected to the general provisions
of labor law.
Thus the notion of self-employment has entered the post-communist countries quite recently
and generally speaking, the regulatory framework has not yet been adapted to respond to the specific
rights such as a status entails. In addition, whatever amendments to the labor and social protection have
been made with respect to the „new“ category of self-employed persons, these did not cater for the
specific needs of self-employed creators.
Whatever status creators are opting for- self employed or employed- their creative activity
should give them the right to social protection, for which adequate provisions should be included in the
regulatory framework. One of the specific features of creative activities is that creators are more and
more combining those two different statuses and therefore the regulatory framework should also
provide for this new development.
In this respect, several aspects should need further clarification. Social protection law, which
includes protection aainst risks incurred during a professional activity, socail risks and unemployment
risks, being designed to protect employed workers against work hazards, still needs to harmonize its’
internal logic to the requirements of the specific case of self-employed creators and artists. While
preforming artists have achieved a certain homonigenization of their social protection, being generally
recognized as employed persons, other categories of creative self-employed professionals still need
tailored system of social protection that would meet their specific needs. Although the regulatory
solutions vary greatly from country to country, the general approach is to grant self-employed creators
the minimal protection available under the general system, via a total or only partial assimilation to
employed persons. While this is, in certain cases, an imporvement compared to non-existent protection,
the minimum protestion is still not sufficient. In this respect, an additional factor should be taken into
the consideration: the irregularity of income of self-employed creators.
Bibliography:
„Tax and Social Security“ a basic guide for artists and cultural operators in Europe
„Cultural legislation-Why?How?What?
„Cultural rights“ course reader
Webography:
www.culturalpolicies.net

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