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BUDGET 2012: ARTISTS’ EXEMPTION/SECTION 481

Residency rules and qualifying criteria for artists’ tax exemption and Section 481 film projects will be tightened but the current reliefs are likely to remain unchanged after Budget 2012, according to The Sunday Business Post.

Artists’ organisations were looking for an increase of the current income cap of €40,000 but this is considered a non-runner because of the state of the economy. The exemption was criticised last year when former Taoiseach Bertie Ahern sought to avail of it for his ghost-written memoir on which he had received an advance of more than €400,000.

The income limit was reduced to €40,000 in last year’s budget; with any earnings over this figure taxable at 52%.

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