31. 12. 85 Official Journal of the European Communities No C 344/1 
II 
(Preparatory Acts) 
ECONOMIC AND SOCIAL COMMITTEE 
Opinion on the resolution of the Council and of ministers responsible for cultural affairs meeting 
within the Council concerning the adoption of tax measures in the cultural sector 
(85/C 344/01) 
On 26 June 1985 the Commission of the European Communities decided to consult the Economic and 
Social Committee, under Article 198 of the Treaty establishing the European Economic Community, 
on the abovementioned resolution. 
The Section for Social Questions, which was responsible for preparing the Committee's work on the 
matter, adopted its opinion on 14 November 1985, in the light of the report by Mr Roseingrave. 
At its 231st plenary session (meeting of 27 November 1985) the Economic and Social Committee 
adopted the following opinion unanimously: 
1. General comments 
1.1. As a result of its communications of 1977 and 1982 
on Community Action in the Cultural Sector (the former 
being the subject of an opinion by the ESC(1)), the 
Commission now puts forward a draft resolution to the 
Council designed to cover, as far as possible, all the specific 
tax aspects of cultural activities. 
1.2. The Committee welcomes this initiative on the part 
of the Commission and in its general response to it fully 
endorses the need for such action to be taken. 
1.3. It expresses strongly the view that the Council would 
take, without delay, all the necessary steps to implement the 
resolution by the Member States. 
2. Specific comments 
2.1. Cultural workers 
2.1.1. The Committee repeats the view expressed in its 
opinion on the 1977 communication that the Commission 
should propose a common definition of the term 'cultural 
worker' because the use of 'creative artist' and 'performing 
(>) OJNoC 128,21. 5. 1979. artist' is considered inadequate, neither term being 
all-embracing and both needing to be qualified on each 
occasion by an inventory of the artists covered. 
2.1.2. It urges the Commission to accelerate the 
completion of its study for a common definition of this term 
which, however, ought to be flexible enough to be relevant to 
the authorities of all Member States. 
2.1.3. The Committee views the use of the term 'workers' 
incomes' as creating a problem, bearing in mind that some 
workers in the cultural sector have part-time and, in some 
cases, full-time occupations. 
It would seem more relevant that 'workers' incomes' should 
refer solely to the earnings derived from the creative work 
done in producing a product, including a performance. 
In this way the proposals on taxation on 'workers' incomes' 
would apply to the work performed, not to the income of the 
worker as such, who might work in both the cultural and 
other sectors. 
2.1.4. The Committee endorses the Commission's 
proposal that in applying income tax to workers in the 
cultural sector, Member States should use a system for 
spreading those workers' incomes over several tax years, and 
No C 344/2 Official Journal of the European Communities 31. 12. 85 
the Committee would support a period of seven years as 
appropriate for spreading such incomes. 
2.2. Cultural foundations 
The Committee believes that the term 'tax exemption' for 
cultural foundations needs to be defined in more precise 
terms. 
2.3. Patronage 
2.3.1. In the adoption of the resolution it must be made 
clear that the Member States of the European Community 
will make provision for appropriate tax deductions regarding 
patronage for gifts and bequests made in the interests of 
culture, even where the beneficiary is resident in a Member 
State other than that of the patron. 
2.3.2. The Committee proposes that appropriate tax 
deduction be granted to undertakings and/or private 
individuals for works of art purchased from individual 
creative artists. In order to minimize abuse, however, the 
Committee recommends that such works of art must not be 
resold within a period of 10 years, otherwise the appropriate 
tax must be paid. 
2.3.3. The Committee emphasizes the Commission's 
viewpoint that, whereas valuable support for the cultural 
sector can be obtained through a flexible and balanced use of 
fiscal measures, nevertheless the Committee believes that 
care must be taken not to aid abuses in 'cultural speculation' 
such as, in terms of succession duties, private properties with 
cultural value, etc. 
2.4. Private architectural heritage 
With regard to this proposal the Committee believes that it 
will be necessary to indicate the economic consequences if such an abatement from the value of listed buildings were 
applied, so as not to give rise to a distortion of the housing 
and property markets. 
2.5. Cultural investments 
The Committee agrees with this proposal. 
2.6. Widening the audience 
The Committee agrees with this proposal. 
2.7. VAT Directives 
The Committee expresses its concern in the delay in the 
implementation of the Commission's proposals on the 
Seventh, 17th and 19th VAT Directives as far as VAT in the 
cultural sector is concerned. 
2.8. Additional items 
2.8.1. The Committee recommends that appropriate tax 
relief should be allowed on the purchase of musicians' 
instruments which are now becoming ever more costly to 
replace. 
2.8.2. The Committee urges that the proposal contained 
in its 1977 opinion on encouraging, by means of tax relief, 
expenditure on works of art in buildings, should be added to 
the resolution which states as follows: 
'Member States (a) reserve a percentage of public 
expenditure for works of applied art and (b) stipulate that 
in public buildings or in buildings benefiting from public 
aid a certain percentage of the gross expenditure should 
be set aside for the creation of works of art for the 
enrichment of the working environment in such buildings 
and (c) encourage such expenditure by means of financial 
aid or tax relief.' 
Done at Brussels, 27 November 1985. 
The Chairman 
of the Economic and Social Committee 
Gerd MUHR 
Opinion on the proposal for a Council Regulation (EEC) amending Regulation (EEC) No 
1408/71 (J) on the application of social security schemes to employed persons, to self-employed 
persons and to members of their families moving within the Community (') 
(85/C 344/02) 
On 27 August 1985 the Council decided to consult the Economic and Social Committee, under Article 
198 of the Treaty establishing the European Economic Community, on the abovementioned 
proposal. 
(*) OJ No C 240, 21. 9. 1985, p. 6.