Paying artists using the scheme for artists

Are you an artist, or do you hire artists for public performances, such as pop stages, theatres, or pubs? Then you can use of the tax scheme for artists (artiestenregeling). The artist is then temporarily in a fictitious employment with the contracting party.

The artists scheme for contracting parties

Do you hire artists and do you use the artists scheme? Then you are liable to withhold taxes. This means you must:

• withhold income tax from their wages
• pay employee insurance contributions

You are liable to withhold taxes if you contract the artists through an intermediary (manager) as well as if you pay the artist directly. Check the Payroll Taxes manual for the Artists and Professional Athletes schemes (Loonheffing Artiesten- en beroepssportersregeling, in Dutch) of the Netherlands Tax Administration for more information.

How to use the artists scheme?

Do you want to pay out a public performance via the scheme for artists? The artist or group has to complete and sign a total fee statement form (gageverklaring, pdf, in Dutch) for each performance. You need the information in this form to withhold payroll taxes.

The artists scheme for artists

Are you an artist or group? The artists scheme has a number of advantages for you:

• you do not have to pay payroll taxes yourself
• you are insured in case of unemployment or illness
• you can report your income at the end of the year as a business profit, which allows you to use the accompanying tax advantages.

If you are an artist or group and you use the scheme for artists you may not charge VAT to your fictitious employer or deduct it as input VAT.

Conditions for the artists scheme

To make use of the scheme for artists, the contractor and the artist or group must both agree to use the artists scheme. They have to meet these conditions:

• The agreement is for a period of at most 3 months, and is for performances exclusively in the Netherlands.
• The parties do not use a model agreement or self-declaration that excludes the artist scheme
• The artist does not use a withholding statement (pdf, in Dutch).
• The agreement is for public performances only, and not private performances such as weddings.
• The artist or group provides the hiring party with a total fee statement form (gageverklaring) before each performance.

Standard expense deduction scheme (KVR)

Are you an artist and are you paid via the artists scheme? You can use the standard expense deduction scheme (kleine vergoedingsregeling, KVR). With the KVR you deduct professional expenses such as travel fees or meal costs in advance. On the total fee statement form you indicate that you want to use the KVR and how much you will deduct. You can declare a maximum of € 163 for each performance.

Are you the contracting party and does the artist use the KVR scheme? Then you do not withhold any payroll taxes or insurance premiums for the amount quoted by the artist on the total fee statement.

Individual expense reimbursement

Are you an artist and do you have professional expenses over € 163? Then you can apply for the individual expense deduction ruling (kostenvergoedingsbeschikking, KVB, in Dutch). On this form you indicate on which part of the fee your fictitious employer does not have to deduct payroll taxes