Christopher BarrettThe European Parliament is being urged to alleviate the financial burdens faced by touring musicians by overhauling and standardising the way in which ‘withholding tax’ is applied by member states.
The call is led by the European Music Managers Alliance (EMMA), the umbrella organisation for more than 3,000 music managers across Europe, who have coordinated a letter to MEPs and EU Commissioners on the issue. It is backed by a cross-section of representative bodies for artists, musicians, independent labels, venues, clubs, and festivals as well as music export offices. They include Live DMA (European Network of Live Music Associations), Liveurope and IMPALA (Independent Music Companies Association).
Withholding taxes are typically deducted as a percentage of an artist’s gross payment when they perform in a foreign territory. Theoretically, they provide a bond towards any taxes owed in the country of earning. However, in their application, no consideration is made of the actual costs and profitability of touring.
EMMA said that as a result, many artists – who are already facing dramatically rising costs of performances, transportation, accommodation and insurance – will overpay the tax they owe, resulting in further deficits or vastly reduced profits.
Compounding this situation, said EMMA, is the lack of uniformity in reclaiming these overpayments is frequently an arduous and sometimes impossible task. As a result, small and mid-sized artists who lack the resources to chase what they are owed are disproportionately impacted.
The artist management collective said that in comparison, US artists playing in Europe benefit from international treaties that means no withholding tax is charged until they earn over a certain threshold – typically €20,000 (£15,700).
EMMA is recommending that European artists receive equal parity – either from a similar universally-applied threshold on earnings; or by standardising systems that are already operational in Denmark, Hungary, Ireland and the Netherlands, where no withholding taxes are imposed on foreign artists on short-term visits.
To help boost their advocacy, EMMA are also encouraging European artists and music professionals to submit their experiences of withholding taxes using this form.
EMMA executive director Jess Partridge said, “The cost burdens shouldered by European artists when they want to perform live shows have increased enormously over recent years. To the point where touring across Europe has become financially precarious, especially for small and mid-sized artists who are building an audience. An already impossible situation is being compounded by the unfair and discriminatory way in which withholding taxes are collected.
“We believe the European Parliament has the power to alleviate these challenges. If MEPs want to promote greater cultural diversity and economic activity through cross-border live touring, then it is imperative the present regime of withholding taxes is overhauled and European artists are given parity with their US counterparts.”
The issue will also be discussed in detail during a panel session at the ESNS25 Conference in January 2025.