New amendments to the Law on Touring Activities in Ukraine at request of art and cultural community.
5.3.2 Performing arts and music
A Law on Theatre and Performing Activities was adopted in 2004 by the Parliament of Ukraine and signed by the President in 2005. The Law "regulates social relations in the sphere of theatre activity, defines the order of theatre establishment and activities" including different types of theatres.
Meanwhile, performing arts and music is regulated by some provisions found in the Fundamentals of the Legislation on Culture (1992) and the Law on Professional Artists and Artists' Unions (1997).
The Law on Touring Activities in Ukraine (2003) determines sources of support to the development of the national performing arts and music sector. Unfortunately, the new Tax Code abrogates the provision of the law envisaging an income from touring activities of foreign performing artists or groups by applying a tax rate of 3% on proceeds from tickets. As a consequence of the new Tax Code, since 1 January 2011, no fees were collected from national or foreign performers. On 18 October 2011, the draft Law on Amendments to the Law of Ukraine on Touring Activities in Ukraine was submitted the Cabinet of Ministers of Ukraine. This draft law has passed the first reading in the Parliament of Ukraine. If the draft law is approved, the license for touring concerts will be given on a paid basis. An organiser would have to pay from 1 to 5% of the full house price. In other words, an organiser would pay a fee based on the aggregate ticket price, not on received revenue. Thus, as experts note, the ticket price could increase by up to 50%. The law makes no difference between national and foreign performers. While Ukrainian performers dispute the new law, considering that it will worsen their conditions and possibly decrease audiences, the Minister of Culture considers that the new law will make transparent the taxation of foreign guest performers and in so doing will create direct funds for the support of the national cultural product.
During 2012, the Parliamentary Committee on Industrial and Regulatory Policy and Entrepreneurship jointly with the Ministry of Culture of Ukraine and representatives of cultural enterprises and companies amended the proposed bill at the demand of the art and cultural community. In particular, it is proposed to introduce a payment for a touring activity in the amount of 1% of full price for domestic guest performers and of 3% for foreign guest performers. Also, the amended bill facilitates procedures related to organising of touring performances, especially for rural areas. It is expected that the bill will be adopted by the Parliament in 2013.