Taxes Consolidation Act 1997 section 195

Exemption of certain earnings of writers, composers and artists

Section 195 provides an income tax exemption for writers, composers, visual artists and sculptors on earnings from the publication, production or sale of original and creative works that have cultural or artistic merit, subject to an annual cap of €50,000.

• Artists living in an EU/EEA state or the United Kingdom can apply to Revenue for a determination that their work is original, creative, and has cultural or artistic merit, covering books, plays, musical compositions, paintings and sculptures.
• If approved, income from the sale or publication of that work (and future work in the same category) is exempt from income tax up to €50,000 per year, though PRSI and USC still apply and the artist must still file an annual tax return including the exempt income.
• Revenue must follow guidelines drawn up by the Arts Council and the Minister for Arts when deciding whether a work qualifies; non-fiction must meet specific criteria, and works created for students, professionals, advertising, journalism or functional purposes are excluded.
• If Revenue does not make a determination within six months of the application, the artist may appeal to the Tax Appeals Commission within 30 days of the end of that six-month period.