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EMMA calls for withholding tax reform to support European artists
December13
The European Music Managers Alliance (EMMA) is urging the European Parliament to standardise and re
The European Music Managers Alliance (EMMA) is urging the European Parliament to standardise and reform withholding tax regulations, which currently disadvantage European artists touring abroad.
In an open letter addressed to Members of the European Parliament (MEPs) and EU Commissioners, EMMA—representing over 3,000 music managers across Europe—has highlighted the financial strain imposed on European artists by inconsistent and burdensome withholding tax practices.
The initiative is backed by organizations including the International Artist Organisation (IAO), IMPALA, FIM, EMEE, Live DMA, and Liveurope.
Withholding taxes are applied as a percentage of an artist`s gross payment for performances in foreign countries. While designed to ensure tax compliance, they often fail to account for touring expenses, leaving artists to overpay. Reclaiming these excess payments is frequently complex and inaccessible, disproportionately impacting small and mid-sized performers.
By contrast, US artists benefit from treaties exempting them from withholding taxes on earnings below €20,000 while touring Europe.
EMMA argues for similar parity for European artists, suggesting either the implementation of a universally applied earnings threshold or the adoption of streamlined systems used by countries like Denmark, Hungary, Ireland, and the Netherlands, which exempt short-term visitors from withholding taxes.
The financial challenges of withholding taxes are compounded by rising costs in transportation, accommodation, and insurance, making profitable tours increasingly difficult. To address these issues, EMMA is inviting European artists to share their experiences using a designated submission form.
The topic will also take center stage during a panel discussion at the ESNS25 Conference in January 2025.
Jess Partridge, Executive Director, European Music Managers Alliance:
“Since the pandemic and the war in Ukraine, the cost burdens shouldered by European artists when they want to perform live shows have increased enormously. 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. 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.”
Per Kviman, founder of Versity Music and Chair of the European Music Managers Alliance:
“Europe’s live music sector is projected to reach a value of $38bn by 2030. 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.”
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