FREQUENTLY ASKED QUESTIONS

Transcription

1 SMALL EXPENSE REIMBURSEMENT FOR ARTISTS (SER) FREQUENTLY ASKED QUESTIONS JANUARY 2017

2 2 1. CONTENT PRINCIPLE 4 A. What is the small expense reimbursement (SER) for artists? TERMS AND CONDITIONS 4 A. For what activities can I apply for a SER? Example: I conduct workshops, can I apply for a SER? 4 B. Do I have to subscribe/login/obtain registration somewhere before I can avail of SER benefits? 4 C. Maximum 7 days consecutively for the same client : does a weekend count as a break? 5 D. Maximum Euros per day, per client': what if in the course of the same day, I work for several clients simultaneously? 5 E. What should I do if I exceed the maximum amount? 5 F. Who is a client? Must the client be a non-profit association? 5 G. Can the SER be combined with other types of cost compensation (such as mileage allowance)? 5 H. Can the SER be combined with the volunteer s fee? 5 I. Can I collect copyright royalties via SER? DOCUMENTS 5 A. The Artists card and overview of performances FOR WHOM? 6 A. Can a minor apply for a SER? 6 B. I work on a self-employed basis: can I apply for a SER? Can I combine SER work with selfemployed jobs (jobs for which I issue an invoice)? Can I combine both systems for the same client? 6 C. I work as an employee: can I apply for a SER? Is this possible with only one client? 6 D. I do not have the status of an artist: Can I still make a claim under SER?/I have the status of an artist: does this mean that I can no longer be compensated under SER? 6 E. Is SER only for amateurs? 6 F. Can we as a group, non-profit association or unincorporated association receive a compensation under SER? TAXES 7 A. Am I required to provide details of SER payments in my income tax return? 7 B. Do I as a client, have to draw up a tax form if I compensate an artist with SER? UNEMPLOYMENT AND REPLACEMENT INCOME 7 A. Am I required to specify the day(s) for which I have worked under SER on my unemployment card? 7 B. Am I required to notify SER amounts to the National Employment Office (for example, on the C3 form Payment by Task (payment for per artistic performance) or via the C1 Artist form)? 7 C. Is SER work included in artistic working days (from the point of view of building up my unemployment [benefit entitlements], the allocation or extension of the benefits scheme, the control of search behaviour)? 7 D. Can I combine SER with replacement income for parental leave/maternity leave/disability benefits/pension/career break?? ABROAD 7 A. Can a foreign artist avail of SER? 7 B. Am I entitled to apply for SER from abroad?

3 STUDENT 8 A. Are the amounts received as SER or the days that I have worked for a SER also counted for the purposes of the 50-day system for social security for students, for child allowance, for reduced social security contributions, for taxes charged to my parents..? INSURANCE 8 A. Do I have insurance coverage when I work under SER? ACCOUNTING 8 A. As a client, how do I record SER in the books of accounts?

4 4 1. PRINCIPLE A. What is the small expense reimbursement (SER) for artists? The SER is a lump sum expense reimbursement allocated on the grounds of delivering artistic performances and/or the production of artistic works on behalf of a client. SER is exempt from social security contributions and from taxes under the following conditions: maximum Euros per day, per client; no more than 7 days consecutively for the same client; no more than 30 days per year; maximum 2, Euros per year. According to applicable law, the availment of SER is subject to possession of an artists card issued by the Artists Commission. More information concerning this will be found under point 3. SER may be availed of if both the parties agree to the same. 2. TERMS AND CONDITIONS A. For what activities can I apply for a SER? Example: I conduct workshops, can I apply for a SER? The client may only implement SER as compensation for work of an artistic nature. In order to know whether work is of an artistic nature, one should examine: the definition of Article 1bis of the law on Social Security: 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, and the methodology mentioned in its bye-laws. The following may be taken into account: Article 17 of the Bye-laws according to which the Commission, in assessing whether or not an item of work is artistic in nature may also, in addition to this definition: investigate the degree of preponderance of the artistic, technical and/or organisational aspect in the performance of the activities." In case of doubt about whether or not a performance is artistic in nature, a written query in this regard may also be submitted to the Artists Commission. B. Do I have to subscribe/login/obtain registration somewhere before I can avail of SER benefits? According to the law, the availment of SER is subject to the possession of an artists card, issued by the Artists Commission. More information concerning this will be found under point 3. C. Maximum 7 days consecutively for the same client : does a weekend count as a break? Yes, days shall mean calendar days.

5 5 D. Maximum Euros per day, per client': what if in the course of the same day, I work for several clients simultaneously? The maximum amount is Euros per client. If the artist works for several clients on the same day, the total maximum amount for that day shall also be Euros x the number of clients. E. What should I do if I exceed the maximum amount? If the terms have been exceeded, the SER may no longer be availed of. If the artist is paid for a commissioned artistic performance, he is treated either as an employee, or as a self-employed person. F. Who is a client? Must the client be a non-profit association? The client may be a natural person (male/female, for example, a private person or self-employed) or a legal entity (non-profit association, private company with limited liability, general partnership, city, municipality, etc.). G. Can the SER be combined with other types of cost compensation (such as mileage allowance)? H. Can the SER be combined with the volunteer s fee? You cannot combine the two types of compensation for your artistic performances. If necessary, you may avail of SER for your artistic performances, and for a volunteer s fee for your non-artistic performances - but not on the same day. I. Can I collect copyright royalties via SER? 3. DOCUMENTS A. The Artists card and overview of performances A person who wishes to obtain SER may apply to the Artists Commission for an artist s card. The application form for an artists card may be found here. The artists card is issued immediately after receipt of the application. The Commission also provides a list of artistic services ) that shall be updated each calendar year along with the card The card and the list of artistic services must be available for inspection at the workplace. The list of artistic services shall be entered by the artist no later than when performance is commenced, and shall contain the following information: the nature of the performance the date of the performance the duration of the performance for the same client the amount received as remuneration the name of the client or his CBE number the client s signature

6 6 4. FOR WHOM? A. Can a minor apply for a SER? Yes B. I work on a self-employed basis: can I apply for a SER? Can I combine SER work with self-employed jobs (jobs for which I issue an invoice)? Can I combine both systems for the same client? A self-employed artist may also apply for a SER (provided, of course, that the requirements for the small expense reimbursement are duly complied with). However, he cannot work for the same client as an employee on some occasions, and under the small expense reimbursement scheme at other times. Note: In case of identical or similar activities with similar costs, there is a risk that the SER amount will be deducted from the actual professional expenses as a self-employed person. C. I work as an employee: can I apply for a SER? Is this possible with only one client? An employed artist may also apply for a small expense reimbursement (provided, of course, that the requirements for the SER are duly complied with. However he cannot work for the same employer/client as an employee on some occasions, and under the small expense reimbursement scheme at other times (not even with the intervention of a Social Bureau for Artists). Example: an actor gives a theatre performance. He is paid for the rehearsals under the SER, and for the performance as an employee. This is not possible. D. I do not have the status of an artist: Can I still make a claim under SER?/I have the status of an artist: does this mean that I can no longer be compensated under SER? The enjoyment of the benefit rule under the unemployment regulation is totally unrelated to the possibility of availing of the SER. An artist may avail of SER whether or not he has the status of an artist. E. Is SER only for amateurs? Whether the artistic performance is provided by an artist who presents himself as an amateur or as a professional, is irrelevant. F. Can we as a group, non-profit association or unincorporated association receive a compensation under SER? These are artists who as natural persons can avail of benefits under the SER.

7 7 5. TAXES A. Am I required to provide details of SER payments in my income tax return? B. Do I as a client, have to draw up a tax form if I compensate an artist with SER? 6. UNEMPLOYMENT AND REPLACEMENT INCOME A. Am I required to specify the day(s) for which I have worked under SER on my unemployment card? Yes, you are required to mark this day in black on your unemployment card) B. Am I required to notify SER amounts to the National Employment Office (for example, on the C3 form Payment by Task (payment for per artistic performance) or via the C1 Artist form)? C. Is SER work included in artistic working days (from the point of view of building up my unemployment [benefit entitlements], the allocation or extension of the benefits scheme, the control of search behaviour)? No, because no social security contributions are deducted. You have no social legal status in respect of days on which you work for a SER. D. Can I combine SER with replacement income for parental leave/ maternity leave/disability benefits/pension/career break?? Yes Note: Sometimes extra formalities have to be fulfilled (for example, consent of the advising doctor, in case of sickness or disability benefit payment, or declaration to the Pension services for retired officials). 7. ABROAD A. Can a foreign artist avail of SER? Yes, if he is legally residing in Belgium, he does not need any work permit to work in Belgium, and Belgian social security is applicable (for example, the foreigner is not on secondment). It is however possible that the artist is subject to Belgian withholding tax for foreign performing artists (see for example, the withholding tax for foreign EU performing artists in Belgium ). B. Am I entitled to apply for SER from abroad?

8 8 8. STUDENT A. Are the amounts received as SER or the days that I have worked for a SER also counted for the purposes of the 50-day system for social security for students, for child allowance, for reduced social security contributions, for taxes charged to my parents..? 9. INSURANCE A. Do I have insurance coverage when I work under SER? An artist who has worked under SER (unlike the volunteer) is not bound to any insurance obligation from the client. However, it is best for the artist to himself obtain Civil Liability insurance. As a professional, this is a civil liability operation. As a private person who occasionally gives artistic performances, it shall be adequate to obtain household insurance (civil liability for private persons, not for professional purposes). It makes little sense to obtain civil liability insurance for one event instead for a year, since the minimum premium is not much lower than the annual premium. In addition, the artist may request the client to provide for personal accident insurance for the event. 10. ACCOUNTING A. As a client, how do I record SER in the books of accounts? Small expense reimbursements can be entered under item 61. 'Services and other goods, compensation to third parties, payment of fees, small expense reimbursements. Legal basis Article 17sexies of the Royal Decree of 28th November 1969 in application of the law of 27th June 1969 amending the Decree-law of 28th December 1944 relating to social security for employed persons (inserted by the Royal Decree of 3rd July 2005; date of entry into force: 1st July 2004) Article 38, 1, 23 and 4 of the Belgian Income Tax Code 1992.