Frequently asked questions on small expense reimbursement (KVR) I. Questions about the terms of the small expense reimbursement

Transcription

1 Frequently asked questions on small expense reimbursement (KVR) I. Questions about the terms of the small expense reimbursement A. For what activities can I apply for a small expense reimbursement? Example: I give workshops, can I apply for a small expense reimbursement? The instructing party can only use the small expense reimbursement to remunerate artistic performances. The law defines the supply of artistic performances and/or the production of artistic works as "the creation and/or implementation or the interpretation of artistic works in the audiovisual and the visual arts, in music, literature, shows, the theatre and choreography". In brief, every activity in which the emphasis is on the artistic. This description is not always clear. For example, is giving a workshop an artistic performance? Is writing a newspaper article an artistic performance? In cases of doubt, the Arts Commission may advise on whether a performance is or is not artistic. In June 2005, the Arts Commission prepared a report, which included descriptions of activities which the Commission did not regard as artistic, and thus to which, in its opinion, the small expense reimbursement cannot be applied: vocal coaching, as its sole aim is to improve the artistic achievement of a third party; animator and presenter, unless an actual show (jokes, sketches, songs,... and not just continuous talking) is presented; journalist, as his primary task consists of the provision of information, unless it is proven that the creative aspect (e.g. when writing a book) gets the upper hand; writing reviews on artistic subjects, since the emphasis is on provision of information; restorer, since it is not the creativity but the technical ability and specialised knowledge which determine this; guitar maker, since this is a craft where the functional criterion prevails and the creative element is only subordinate to the sound; technical, administrative and managerial positions; 1

2 providing artistic training (dance, painting); spiritualism; conductor whose work lies within the framework of pedagogical education (e.g. non-profit organisation focussed on musical education of youth), because the educational rather than the artistic aspect has primacy; architect; model, including male and female strippers, unless proven to the contrary; designing and building a website for the youth service of a sociocultural association, since the informative character takes precedence over any design aspects related to the creation of such a site; graphic designer, unless it is proven that truly original work is being created and it is not the purely technical aspect which prevails. These opinions are not binding, but may provide guidance in a pending case. What if the activities you perform are not listed, and you are unsure whether your activity is artistic? You can always contact the Arts Commission for advice: tel.: or or by to: info@articomm.be. B. Maximum 7 days consecutively for the same instructing party : does a weekend count as a break? Yes, days mean calendar days. C. What should I do if I exceed the maximum amount? If the terms have been exceeded, the small expense reimbursement may no longer be used. If the artist is paid by way of a commission for an artistic performance, he is treated as an employee, unless the artist has opted for self-employed status. 2

3 D. Who is the instructing party? Must this be a non-profit organisation? The instructing party may be any person, both a natural person (male/female) and a legal entity (non-profit association, limited company, partnership ). II. Questions about the small expense reimbursement and the documents A. Does the artists' card already exist? Which document should I use? Pending the introduction of the artist's card, the artist must prepare a statement in duplicate (one for the instructing party, one for the artist) and prepare a list that keeps track of how often and with whom the artist applies for a small expense reimbursement. Samples of these documents can be found on click on documents. B. What should I do with these documents? For the time being, merely keep them. You must not send these documents to the tax authorities or any other office (no, not to the Arts Office either). C. If I apply for a small expense reimbursement for several days in succession for the same instructing party, do I need to sign a declaration of intent for each day or can this all be covered by one declaration of intent? This can be listed on one declaration of intent. For the number of days, you just fill in several days. III. Questions about who can apply for a small expense reimbursement A. Can a minor apply for a small expense reimbursement? Yes. B. I work on a self-employed basis: Can I apply for a small expense reimbursement? Can I combine small expense reimbursement work with self-employed jobs (jobs for which I issue an invoice)? Can I combine both systems for the same instructing party? 3

4 A self-employed artist can also apply for a small expense reimbursement (provided, of course, that the requirements for a small expense reimbursement are complied with). 4

5 However, he cannot work for the same instructing party on a self-employed basis at some times and for a small expense reimbursement at other times. A. I work as an employee: Can I apply for a small expense reimbursement? Is this possible with only one instructing party? An employed artist can also apply for a small expense reimbursement (provided, of course, that the requirements for the small expense reimbursement are complied with). However, he cannot work for the same employer/instructing party as an employee at some times and for a small expense reimbursement at other times. Example: an actor has a theatre performance. He is paid for the rehearsals with a small expense reimbursement, but for the performances as an employee. This cannot be done. IV. Questions about the small expense reimbursement and taxes A. Am I required to indicate payments of small expense reimbursementon my income tax return? B. Am I required as an instructing party to prepare a tax record for an artist whom I have paid with a small expense reimbursement? V. Questions about the small expense reimbursement and unemployment or other social security benefits A. Am I required to indicate the day(s) that I have worked for a small expense reimbursement on my stamp card? Yes, you are required to blacken out these days on your stamp card (unless the days come under the framework of voluntary work and you have permission for this from the National Employment Office). B. Does work for a small expense reimbursement count as artistic working days (in the context of building up my rights to unemployment, the benefits scheme, the 156-day rule)? No, because no social contributions are deducted. You gain no social legal status from days that you work for a small expense reimbursement.

6 C. Can I combine work for a small expense reimbursement with parental leave/maternity leave/disability benefits/pension/career break? Yes. VI. Questions about the small expense reimbursement and foreign countries A. May a foreign artist apply for a small expense reimbursement? Yes, if he is legally residing in Belgium, does not need any work permit to work in Belgium and Belgian social security is applicable (e.g. the foreigner is not seconded). It might be possible that the artist is subject to Belgian withholding tax for foreign performing artists (amounts above the statutory tax deduction for costs). B. Am I entitled to apply for a small expense reimbursement from abroad? VII. Questions about the small expense reimbursement and students A. Do the amounts received as a small expense reimbursement or the days that I have worked for a small expense reimbursement also count towards the 23-day system of social security for students, for child benefit, for reduced social security contributions, for taxes charged to my parents? VIII. Questions about the small expense reimbursement and insurance A. Am I insured whilst I am working for a small expense reimbursement?

7 The instructing party is advised to take out a supplementary insurance policy to cover his third party liability towards the artist and any damage which may be caused to the artist. IX. Questions about the small expense reimbursement and bookkeeping A. How do I, as an employer, account for payments of small expense reimbursements? Small expense reimbursements can be entered under item 61: 'Services and other goods, compensation to third parties, payment of fees, small expense reimbursements.