The Ministry of the Arts and Multiculturalism. The National Registry of Artists & Cultural Workers

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1 The Ministry of the Arts and Multiculturalism The National Registry of Artists & Cultural Workers A G U I D E F O R C O R P O R A T E C I T I Z E N S

2 INTRODUCTION The National Registry of Artists and Cultural Workers is a programme of the Government of Trinidad and Tobago. This initiative of the Ministry of the Arts and Multiculturalism is supported by Cabinet and is also a requirement as a signatory to the Economic Partnership Agreement (EPA) with the European Union (EU). One of the primary goals of the National Registry is to facilitate access of intended beneficiaries to the gains provided by the Art and Culture Allowance. This allowance has been instituted via six distinct amendments to the Corporation Tax Act. - Act No. 91 of Act No. 2 of Act No. 4 of Act No. 2 of Act No. 17 of Act No. 13 of 2010 The development of a database of all artists to facilitate development of cultural industries, research and heritage will be an additional goal of the project. The Registry will also optimize the benefits to be accrued to nationals from the Caribbean Single Market and Economy and the Economic Partnership Agreement (EPA) between the European Union and CARICOM. The Registration and Certification processes will be facilitated by an Assessment Committee for the National Registry of Artists and Cultural Workers and the Certification of Audio, Visual and Video Productions. Registration expires every five (5) years and must be renewed accordingly. THE SECRETARIAT The National Registry of Artists and Cultural Workers is managed by the National Registry Secretariat. The Secretariat is comprised of two culture sector specialists and one network administrator who are responsible for the maintenance of the National Registry. Additionally members of the Secretariat: Provide technical support for the management of the National Registry of Artists and Cultural Workers Assist in the development of processes and procedures to expedite the efficient operation of the Registry Manage administrative arrangements related to the functioning of the Assessment Committee Guide applicants through the application process

3 Prepare reports for the Assessment Committee containing a preliminary evaluation of the applications Perform any verification concerning applications that the Committee requires Ensure entry of all successful applications in the registry Ensure that the database and website are updated regularly Coordinate the marketing of the website and the artistes on the registry Assist in the development of policies and initiatives related to cultural sector in the Division of Culture Performs other related duties as required purchase a work of visual art directly from a visual artist and it is therefore, the first acquisition of that particular piece. provide funding to performing artistes registered with the National Registry of Artists and Cultural Workers or the Tobago House of Assembly provide funding to producers of audio, visual and video productions whose work has been certified by the Minister with responsibility for Culture as representing local culture or entertainment The allowance is fully operational with 678 companies accessing it from PROVISIONS IN THE ART & CULTURE ALLOWANCE The Art and Culture Allowance is designed to make sponsorship of artists and their artwork more attractive to the Corporate Citizen. These benefits accrue to companies when they:

4 HOW WILL THE CORPORATE CITIZEN BENEFIT FROM SPONSORING A REGISTERED ARTIST, CULTURAL WORKER OR SUPPORTING AN AUDIO, VISUAL OR VIDEO PRODUCTION? 1. A Corporate Sponsor can claim as an allowance for that year of income, 100% of the actual expenditure incurred up to a maximum of two million dollars based on: the funding they provide to a performing artiste registered with the Ministry with responsibility for Culture of the Tobago House of Assembly and the first acquisition of a work of visual art that has been certified by an art gallery (that must submit the valuation it performed). 2. A Corporate Sponsor can claim as an allowance for that year of income, 150% of the actual expenditure incurred up to a maximum of two million dollars based on the funding they provide to a producer who has developed an audio, visual or video production promoting or reflecting local entertainment or local culture. local entertainment or local culture, you can claim as an allowance for that year of income, 150% of the actual expenditure incurred up to a maximum of two million dollars. NOTE- 1) The aggregate claim of a Company for (1) and (2) above together with the promotion/ sponsorship of sporting activities/events/sportsmen is limited to $2million. NOTE- 2) A Production Company, in addition to its claim at (3) above, is also entitled to claim an aggregate of $2million for expenses incurred at (1) above together with promotion/ sponsorship of sporting activities/ events/ sportsmen is limited to $2million. 3. Corporate Citizens should note that if they are a Production Company that incurred expenditure for its own audio, visual or video production reflecting

5 HERE ARE SOME EXAMPLES OF HOW THE ALLOWANCE WORKS: A company decides to invest $500,000 in the purchase of a piece of artwork (Visual Art). The is $.5m. Financial Statement before Net Profit - $2,000,000 Total deductions - ($1,300,000) A company decides to invest the max of $2,000,000 in the Visual and Performing Arts. The is $2m. Financial Statement before Net Profit - $5,000,000 Total deductions - ($2,100,000) A company sponsors audio, visual or video production which is used for local education, entertainment or for reflecting local culture on radio or television. The expenditure is $2m. This allowance is 150% of the expenditure. Financial Statement before Net Profit - $8,000,000 Total deductions - ($4,300,000) Chargeable Profit $ 700,000 Tax = $700,000 x 25% - $175,000 Tax reduced by $125,000 after Financial Statement after Net Profit - $2,000,000 Deductions - ($1,300,000) Art & Culture - ( $500,000) Total Deduction $1,800,000 Chargeable Profit $ 200,000 Tax = 200,000 x 25% - $50,000 Chargeable Profit $2,900,000 Tax = $2,900,000 x 25% - $725,000 Tax reduced by $500,000 after Financial Statement after Net Profit - $2,000,000 Deductions - ($2,100,000) Art & Culture - ( $2,000,000) Chargeable Profit $ 900,000 Tax = 900,000 x 25% - $225,000 Chargeable Profit $3,700,000 Tax = $3,700,000 x 25% - $925,000 Tax reduced by $725,000 after Financial Statement after Net Profit - $8,000,000 Deductions - ($4,300,000) Art & Culture - ($3,000,000) Total Deduction ($7,300,000) Chargeable Profit $ 700,000 Tax = 700,000 x 25% - $175,000

6 HOW TO ACCESS THE TAX ALLOWANCE? When the company submits its Corporation Tax Return (Form 500 CTR), they must fill out the Schedule re: the Art and Culture, Sportsman, Sporting Activities/Audio, Visual or Video Production. The following attachments must be included with the form to support their claim: For claims in Art and Culture: In the case of the acquisition of a work of visual art, a valuation of art work(s) performed by an art gallery must be submitted. In the case of support for a performing artist, a copy of their certificate of registration with the National Registry of Artists and Cultural Workers must be submitted. For claims in Audio Visual/Video Production: A copy of the certificate from the Minister with responsibility for Culture certifying that the production promotes or reflects local entertainment or culture must be submitted. Production Companies submitting claims in respect of expenditure related to their own productions must fill out the Production Company Allowance and attach a copy of the certificate from the Minister with responsibility for Culture certifying that the production promotes or reflects local entertainment or culture. HOW TO RESPOND TO ARTIST REQUESTS FOR FINANCIAL ASSISTANCE? VISUAL ARTISTS Encourage visual artists requesting purchase of their work to have their pieces valuated and certified by an art gallery. You must obtain this valuation for submission with your Corporate Tax Return. PERFORMING ARTISTS Encourage all performing artists seeking assistance to register with the National Registry of Artists and Cultural Workers. You must obtain a copy of their certificate of registration for submission with your Corporate Tax Return. PRODUCERS OF AUDIO, VISUAL AND VIDEO PRODUCTIONS Encourage producers seeking support for their audio, visual and video productions to apply to the National Registry of Artists and Cultural Workers to have their work evaluated and certified by the Minister with responsibility for Culture as promoting or reflecting local entertainment or culture. You must obtain a copy of their certificate for submission with your corporate tax return. Individuals and/or Organisations can apply to the National Registry of Artists and Cultural Workers electronically or manually. This process is free of charge. Application forms can be found on our website: Forms can also be collected from our offices at Frederick Street, Port of Spain. Completed forms can either be submitted electronically or manually with all supporting documents. Confirmation of the registry application will be posted on the website. Once the application has been approved, a certificate will be ready for collection at the Culture Division offices, Frederick Street, Port-of-Spain; one (1) week after said approval is posted on the Registry s website.

7 WHAT THE LEGISLATION SAYS: The Corporation Tax Act, Chapter 75:02 10G. (1) Subject to section 10L, where in a year of income, a company incurs expenditure in respect of an artistic work, there shall be allowed as a deduction, in ascertaining the chargeable profits of the company for that year of income, an allowance equal to the actual expenditure incurred up to a maximum of two million dollars. (2) In respect of a visual work of art (a) the deduction may only be claimed in respect of the initial acquisition of the work; and (b) the deduction be allowed where the work (i) is done by a national of Trinidad and Tobago; and (ii) is certified by an art gallery, which shall submit a valuation of the work done (3) In the case of a performing art, the deduction shall only apply where (a) the work is done by a national of Trinidad; and (b) the national rendering such work is registered with the Ministry with responsibility for culture or with the Tobago House of Assembly, in the case of a national residing in Tobago. (4) In this section artistic work means any work of art, whether visual or performing. 10J. Subject to section 10L, where in a year of income, a company sponsors audio, visual or video productions for the purposes of local education or local entertainment or reflecting local culture for radio or television, there shall be allowed as a deduction, in ascertaining the chargeable profits of the company for that year of income, an allowance of 150% of the actual expenditure incurred in respect of such productions up to a maximum of two million dollars. 10K. Where in a year of income, a production company incurs expenditure in respect of its own audio, visual or video productions for educational purposes or promoting or reflecting local entertainment or local culture for use in radio, television or cinematograph works, there shall be allowed as a deduction in ascertaining the chargeable profits of the company for that year of income, an allowance equal to 150% of the actual expenditure incurred in making such productions up to a maximum of two million dollars. 10L. (1) For the purpose of ascertaining the chargeable profits of a company for a year of income, the aggregate allowance that may be claimed under sections 10G, 10I (which deals with company sponsorship of sporting activities and sportsmen) and 10J shall not exceed the sum of two million dollars. (2) In the case of a production company, in addition to the deduction allowed under section 10K, the company shall be entitled to claim an aggregate allowance of up to a maximum of two million dollars with respect to sums paid to finance sporting activities and artistic works not related to its own business. 10M. For the removal of doubt a company which is granted an allowance under sections 10G, 10H, 10I and 10J shall not also be entitled to a deduction under section 10 of the Income Tax Act as applies to the Corporation Tax Act. 10N. For the purposes of sections 10J and 10K the Minister with responsibility for culture shall issue a certificate in respect of a production to promote or reflect local entertainment or culture referred to therein, in the manner prescribed to the effect that the production is to promote or reflect local entertainment or culture, and a deduction shall not be allowed by the Board in the absence of such certificate.

8 Contact Information The Secretariat National Registry of Artists and Cultural Workers Ministry of The Arts and Multiculturalism Culture Division Frederick Street, POS Website