Call to overhaul withholding tax for touring acts

The European Music Managers Alliance (EMMA) is calling for an overhaul in how “withholding tax” is applied to touring musicians in the EU.

The umbrella organisation for more than 3,000 music managers across Europe has coordinated a letter to MEPs and EU Commissioners on the issue, backed by a cross-section of trade bodies, as well as music export offices.

Withholding taxes are typically deducted as a percentage of an artist’s gross payment when they perform in a foreign territory – theoretically providing a bond towards any taxes owed in the country of earning. However, EMMA says that no consideration is made of the actual costs and profitability of touring, with many artists overpaying the tax they owe as a result.

By comparison, US artists playing in Europe benefit from international treaties that means no withholding tax is charged until they earn over a certain threshold – typically €20,000.

“The cost burdens shouldered by European artists when they want to perform live shows have increased enormously over recent years,” says EMMA executive director Jess Partridge. “To the point where touring across Europe has become financially precarious, especially for small and mid-sized artists who are building an audience.

“An already impossible situation is being compounded by the unfair and discriminatory way in which withholding taxes are collected. We believe the European Parliament has the power to alleviate these challenges.”

EMMA is recommending that European artists receive equal parity – either from a similar universally-applied threshold on earnings; or by standardising systems already operational in Denmark, Hungary, Ireland and the Netherlands, where no withholding taxes are imposed on foreign artists on short-term visits.

“It is imperative the present regime of withholding taxes is overhauled and European artists are given parity with their US counterparts”

“If MEPs want to promote greater cultural diversity and economic activity through cross-border live touring, then it is imperative the present regime of withholding taxes is overhauled and European artists are given parity with their US counterparts,” adds Partridge.

The letter to the European Parliament, which is countersigned by IAO, IMPALA, FIM, EMEE, Live DMA and Liveurope can be read here.

“Europe’s live music sector is projected to reach a value of $38bn by 2030,” says Per Kviman, founder of Versity Music and chair of EMMA. “That immense cultural and economic impact is wholly dependent upon touring artists and musicians. As well as attracting audiences to their performances, these talented and creative individuals are directly responsible for hundreds of thousands of jobs.

“However these benefits are jeopardised by an outdated and discriminatory application of withholding taxes. If we want European artists to compete on a global stage, then it is vital the European Parliament acts on this issue.”

Helen Smith, executive chair of IMPALA, adds: “Cross-border touring is essential for the livelihood and growth of artists, particularly in the independent sector. The current withholding tax system penalises the smaller and emerging artists who can lack the financial resources and administrative support to navigate its complexities and can give an advantage to acts from certain areas of the world, at the expense of European talent.

“IMPALA and other pan-European music organisations previously called on EU member states to engage with the music sector to address these barriers as part of ‘A New European Vision for Touring’. By implementing fair and standardised rules, the European Parliament has a chance to empower our artists, strengthen the music ecosystem, and ensure Europe remains a competitive global hub for cultural diversity and innovation.”

EMMA will lead a panel discussion titled How is European Policy Hurting Touring Artists – and How Can We Change It? at the ESNS (Eurosonic Noorderslag) conference on Friday 17 January 2025.

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