A café that books a DJ, a foundation that hires a cover band for a neighbourhood party, a theatre that has a comedian perform: in all these cases, the Dutch artiste scheme can come into play. This special rule within Dutch payroll tax law states that the party paying an artiste must, in many cases, withhold payroll tax on the fee, even when there is no employment relationship at all. For clients and artistes encountering this for the first time, that quickly raises questions.
Short answer
The artiste scheme means that whoever pays an artiste for a performance (the party owing the fee) is obliged to withhold and remit payroll tax on that fee, as if the artiste were temporarily employed. This applies to performances for an audience involving an artistic achievement, and does not depend on whether an actual employment relationship exists. There are exceptions, for example if the artiste has their own limited company, enters into an agreement that explicitly excludes the scheme, or when the parties jointly choose to apply the normal rules for business profit instead.
What exactly does the artiste scheme involve?
Normally, an employer only withholds payroll tax if there is a genuine employment relationship: a relationship of authority, an obligation to work personally, and payment for it. For artistes that is often not the case. A band playing in a café on a Saturday night does not work under the authority of the café owner and has no permanent employment contract. Even so, the legislator chose to treat this group as equivalent to employees for tax purposes, precisely because performances are often short-term and irregular, which could easily leave artistes outside the regular system.
The organiser paying the fee is therefore designated as the withholding agent. This means they must withhold payroll tax (wage tax and national insurance contributions) on the fee and remit it to the Tax Authority, just as with a regular payslip. The artiste therefore receives a net amount, and the organiser remits the rest.
Who falls under the artiste scheme?
The scheme applies to individuals who, whether or not as part of a group, perform for an audience and deliver an artistic or creative achievement in doing so. Think of musicians, singers, DJs, comedians, dancers, magicians and actors. A group, such as a full band or a theatre troupe, can also fall under the scheme. People who are involved in a performance but do not perform themselves, such as a sound engineer, a lighting technician or a manager, generally do not fall under it.
It is also important that it must be a performance for an audience. A private party in one's own domestic circle, such as a wedding or birthday at someone's home, usually falls outside the scheme because there is no performance, within the meaning of the law, aimed at a wider audience from an organisation.
How much payroll tax is withheld?
Payroll tax is withheld from the fee at the rate of the first bracket of income tax. This percentage is set annually and stands at around 35.70% for 2026. Because this rate can change every year, it is wise to check the current percentage before a performance, for example via the Tax Authority's Payroll Tax Handbook.
Has the organiser not received a correctly completed fee statement from the artiste? Then they must apply the so-called anonymous rate, which is significantly higher, namely 52%. This is a substantial financial setback for the artiste, so completing the fee statement is not a formality to be taken lightly.
The fee statement: why this form matters so much
Before the performance, the artiste fills in a fee statement including their name, address, place of residence and citizen service number, and also states the agreed fee amount. The organiser keeps this form with the payroll records. As long as the artiste's details do not change, a new statement does not have to be completed for every performance; only a different fee or a changed line-up of the group requires a new statement.
Expense allowance: the small expenses scheme
Artistes often incur costs for a performance, think of travel expenses, clothing, make-up or hired equipment. Under the small expenses scheme, the organiser may reimburse a tax-free amount of up to 163 euros per performance without having to withhold payroll tax on it, and without the artiste having to submit receipts. If actual costs are higher, an individual expense allowance ruling can be requested in consultation with the Tax Authority, substantiating the actual costs.
Example from practice
A DJ plays an evening at a club at the request of an event agency and receives a fee of 400 euros for it. The event agency has received a correctly completed fee statement from the DJ. Of the 400 euros, 163 euros may first be reimbursed tax-free as a flat-rate expense allowance. Payroll tax is withheld on the remaining amount of 237 euros at the applicable first-bracket rate. The DJ therefore receives a net amount lower than the agreed 400 euros gross, and the event agency remits the withheld payroll tax to the Tax Authority.
Had the DJ not filled in a fee statement, the event agency would have had to withhold the anonymous rate of 52% on the full amount after deducting the expense allowance, which would have meant a considerably lower net amount for the DJ.
When does the artiste scheme not apply?
There are various situations in which the artiste scheme does not apply:
- The artiste performs through their own private limited company, which invoices the fee; in that case the normal rules for invoicing between businesses apply.
- The parties use a model agreement from the Tax Authority that explicitly excludes the artiste scheme, and actually work according to that agreement.
- The artiste and the client jointly choose to treat the fee as business profit, for example because the artiste is regarded as a self-employed entrepreneur and declares it as such.
- There is in fact a genuine employment relationship, for example an artiste permanently employed by a theatre company; in that case the normal payroll tax rules for employees apply.
- The performance takes place in a purely private setting, without any performance for a wider audience from an organisation.
For performances abroad or by foreign artistes in the Netherlands, tax treaties can also play a role, which can shift taxing rights between countries. This is often bespoke and deserves specific attention per situation.
What should you do as an organiser or artiste?
Are you an organiser hiring artistes? Make sure you have a fee statement completed before every performance and keep it carefully in your payroll records. Determine the fee per performance, calculate the expense allowance correctly, and remit the payroll tax on time via the payroll tax return. If you regularly act as a client for artistes, it pays to set up this process properly, so you don't have to figure out how the scheme works again for every performance.
Are you an artiste who performs regularly yourself? Keep track of how much payroll tax has been withheld and request an annual statement at the end of the year from the organisers you performed for. You can offset this withheld payroll tax against your income tax return. If you work as a self-employed entrepreneur and would rather not have the artiste scheme apply, discuss with your clients whether a model agreement or a joint choice for treatment as business profit is possible, and record this properly.
Frequently asked questions about the artiste scheme
Do I also have to have payroll tax withheld as a sole trader artiste?
That depends on the agreements you make with the client. By default, the artiste scheme also applies to artistes with a sole proprietorship, unless you and the client jointly choose treatment as business profit and record this correctly, for example via a model agreement intended for that purpose.
Does the artiste scheme also apply to a DJ booked via a booking agency?
Yes, the scheme can apply in that case too. Usually it is the booking agency or the ultimate client that actually owes the fee and therefore has the withholding obligation. Exactly who acts as the party owing the fee depends on the contractual arrangements and merits further investigation if in doubt.
What happens if I don't fill in a fee statement?
Then the organiser is obliged to apply the anonymous rate of 52% instead of the regular first-bracket rate. This results in a considerably lower net amount for the artiste, so it is in everyone's interest to complete the fee statement on time and in full.
Does the artiste scheme also apply to a performance at a wedding?
A performance in a private setting, such as at a wedding or birthday at someone's home, generally falls outside the artiste scheme because there is no performance for an audience from an organisation. If in doubt about the exact situation, it is wise to have this assessed in advance.
Can I get the withheld payroll tax back through my tax return?
The withheld payroll tax is offset against the income tax you ultimately owe on your total income. If, on balance, too much was withheld, you get that difference back via your income tax return. So this is not a final tax, but a provisional levy.
The percentages and amounts mentioned, such as the rate of 35.70% and the small expenses scheme of 163 euros, are the figures applicable for 2026. Because these can change annually, we recommend checking the current amounts before financially settling a performance.
The artiste scheme regularly raises questions in practice, especially if you deal with performances more often as a hospitality entrepreneur, foundation or booking agency. Do you work as a DJ, musician or other creative entrepreneur yourself and want to know how this can best be arranged for your own situation? Take a look at our services for bookkeeping for creative entrepreneurs.
Want to know more? See the official information from the Tax Authority and Ondernemersplein on the artiste scheme.
