Taxman.nu provides information on the special Dutch tax regime for local and foreign artists performing in The Netherlands.
Most of the information is in Dutch, but please check the following for information in the English language.
Foreign professional athletes, artists and groups of performers performing in the Netherlands will be exempt from Dutch taxation as from 1 January 2007. A necessary condition is that the country where the athlete, artist or performing group resides has a treaty for the avoidance of double taxation with the Netherlands (see list below). The exemption also applies to athletes, artists and performing groups from the (former) Netherlands Antilles and Aruba.
In the absence of a treaty, the Netherlands will continue to levy tax. The country of residence of the athlete, artist or performing group will then be able to prevent double taxation by exempting the income from taxation or by setting off the tax paid in the Netherlands.
Offical sources: Uitvoeringsregeling Loonbelasting 2001 (tekst 2007)
Vastgesteld op 20 december 2000, nr. WDB 2000/955M, zoals laatstelijk gewijzigd bij ministeriële regeling van 12
december 2006, nr. DB2006/658M (Stcrt. 27 december 2006, nr. 251).
As from january 2007 a foreign artist is exempt from taxation if the individual artist resides in the (former) Netherlands Antilles, Aruba or in a country that has a treaty for the avoidance of double taxation with the
Netherlands (see list below).
A foreign group of artists is also exempt from taxation if 70% or more of its members reside in the (former) Netherlands Antilles, Aruba or in a country that has a treaty for the avoidance of double taxation with the
Netherlands. It is possible that individual members of such a foreign group reside in the Netherlands. In that case these members have to file a Dutch tax return (Aangifte Inkomstenbelasting).
Individual artists have to proof their residence in a tax treaty country, the (former) Netherlands Antilles or Aruba by handing the withholding agent (usually the promoter) a copy of a legally valid identity document and full home address.
Groups of artists
A group af artists can prove their residence in a tax treaty country, the (former) Netherlands Antilles or Aruba in two ways:
By providing the promoter with copies of legally valid identity documents plus a list of full home addresses of at least 50% of the groups members.
By providing the promotor the following four (4) documents:
a. a copy of a legally valid identity document of the groups leader of representative,
b. a written declaration stating that 70% or more members reside in a tax treaty country, the (former) Netherlands Antilles or Aruba,
c. a written contract with the group of artists stating its address in a tax treaty country, the (former) Netherlands Antilles or Aruba,
d. a proof of payment to a bank account in a tax treaty country, the (former) Netherlands Antilles or Aruba.
In the absence of a treaty, the Netherlands will continue to levy 20% artist wage tax. The basis for withholding artist wage tax is the gross taxable fee or ‘belastbare bruto gage’ (this is the gross fee plus all cost reimbursements and benefits in kind, less deductible expenses). Excluded from taxation are free meals and drinks, and reimbursements of stay and travel expenses (but only if original tickets and/or invoices are handed to the promoter).
Deduction for expenses
Every artist will make expenses in connection to the performance in The Netherlands. To the extent that these expenses are business like, deduction is allowed upon withholding. There are two ways to effectuate the relief for expenses: the Small Artist Deduction (Kleine Vergoedings Regeling KVR) and the Cost Deduction Ruling (Kosten Vergoedings Beschikking KVB). In both ways the basis for taxation (the gross taxable fee) is reduced, so less tax is withholded and the more net fee remains for the artist. If deduction equals the total gross fee, no tax is due.
Small Artist Deduction (KVR)
Every artist subject to withholding is entitled to deduction of a lump sum amount of max. 136 Euro (as of 2009: 163 Euro) per performance per person. This lump sum deduction can be applied without prior clearance from the tax authorities. Considering the relatively low amount of the deduction, this is called the Small Artist Deduction or ‘Kleine Vergoedings Regeling’.
Cost Deduction Ruling (KVB)
As an alternative, the artist or band can claim a higher deduction for expenses using a Cost Deduction Ruling or ‘Kosten Vergoedings Beschikking’. This deduction requires approval from the tax inspector. The request for a KVB can be filed with the tax authorities in advance on the basis of estimated figures. The artist, the leader or representative of the band, or the withholding agent, can file it. The withholding agent, who has to file this request within one month after the concert, can also file the request after the concert (on the basis of real figures).
Gross fee or net fee?
Sometimes a gross fee is agreed between artist and promoter. Often this is not the case. Many artists don't like to worry about taxation and deduction of expenses. They just want to know how much they get paid in cash after the performance. In that case a net fee is agreed between artist and promoter. When a net fee is agreed, the promoter is responsible for calculating the gross taxable fee and paying the artist tax. The gross taxable fee in this case is calculated as 125% of the net fee less deduction (so the artist tax is 25% on top of the total net fee less deduction).
A net fee and the deduction of expenses
Although for the artist the agreed total net fee is a fixed remuneration, the promoter can still ask the artist to agree in claiming deduction (using the Small Artist Deduction or Cost Deduction Ruling). Doing so reduces the taxable basis for withholding, so less tax has to be paid by the promoter. As a result the total cost of a performance is reduced. If deduction equals the agreed net fee, no tax is due.
Filing a Dutch tax return?
The 20% withholding tax is in principle a final tax. The foreign artist however has the option to file a Dutch tax return after the closing of the tax year. Filing a Dutch tax return can result in a tax refund if there are (substantial) expenses which have not been considered upon withholding and/or the total remuneration less expenses is below approximately 50,000 Euro (2004), as a consequence of which the effective Dutch income tax rate will be lower than the 20% foreign artist wage tax rate. For more info check the Dutch Tax and Customs Administration >>.
In order to perform in the Netherlands as a foreign artist (residing in a non tax treaty country) certain formalities need to be fulfilled. This includes:
Providing a properly filled out, signed and dated Total Fee Statement Form (Gageverklaring) to the withholding agent (usually the promoter) before the performance takes place. You can download this form here >> (english or dutch language version).
Providing a copy of a legally valid identity document of the foreign solo artist;
or providing copies of legally valid identity documents of at least 50% of the members of a foreign group of artists.
08 Belarus (Wit-Rusland)
46 Mongolië (treaty ended january 1st, 2014)
65 Sri Lanka
75 Verenigde Staten USA
87 Verenigde Arabische Emiraten
89 Hong Kong
92 Malawi (treaty ended january 1st, 2014, renewed april 20, 2015)
Former Netherlands Antilles and Aruba:
95 Belastingregeling Koninkrijk (Aruba, Caracao, Sint Maarten)
96 BES-eilanden (Bonaire, Sint Eustatius, Saba)
Bosnië-Herzegovina, Kosovo, Montenegro and Servië are still using the treaty with Yugoslavia.
Kirgizië, Tadzjikistan and Turkmenistan are stil using the treaty with the Soviet Union.
The information above is not an official publication by the Dutch Government and provided ‘as is’ by Taxman.nu and the Metropool Rock Venue, Hengelo (Ov), The Netherlands. For more info please check the Dutch Tax and Customs Administration >>. In case you want specific information or like to file a Dutch tax return, please contact a specialized Dutch artist tax adviser, like All Arts >>.