A new Legal Notice (LN 137 of 2025) has been issued under the Income Tax Act, introducing new updates for individuals earning income from artistic activities.
The Legal Notice is based on Articles 56(26A)(c) and Article 96 of the Income Tax Act, whereby these provisions empower the government to issue legal notices that set rules or exceptions under the Income Tax Act.
Artists will now be charged to tax on their net income, that is, their earnings after deducting allowable expenses directly related to the production of the income, as allowed in terms of article 14 of the Income Tax Act. These allowable deductions may typically include costs such as:
- Materials and equipment used for artistic work;
- Rental of studios or venues;
- Travel expenses incurred for performances or exhibitions; and
- Other necessary costs related to the production of artistic income
The net income from artistic activities is taxed at a special flat rate of 7.5%, as set out in Article 56(26A) of the Income Tax Act, capped at €50,000 net income.
If an artist earns more than the said threshold in net income, the portion above €50,000 must be declared in the individuals’ standard income tax return and will be taxed at the normal progressive tax rates applicable to the individuals’.
These standard rates are provided under:
- Article 10 of the Income Tax Management Act (which deals with tax filing); and
- Article 56(1)(a) or (b) of the Income Tax Act, which outlines rates for different taxpayer categories such as single, married, or parent status.
It is important for one to note that the part-time tax benefits under Article 90A of the Income Tax Act shall not apply to income from artistic activities under this legal notice. Article 90A allows individuals to pay a reduced 15% tax on income earned from part-time employment. However, under this new legal notice, even if the artistic activity is performed on a part-time basis, the 15% part-time tax rate cannot be used.