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 selfemployed 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 selfimprovement 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 socalled 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“.... 1. 2. 3. 4. Romania has several Laws on the matter of Legislation for self-employed artists: Law no.195/2001 on Volunteers amended by Law no.629/2002 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 Law no.53/2003- Labor Code subsequently amended 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 selfemployed, 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