Musicians and singers face the challenge of treating their fees and other income correctly for tax purposes. Some time ago, the Karlsruhe Regional Tax Office published an updated information sheet on the taxation of artists and singers, in which it states: “Artists are also faced with the question of whether they have to pay tax.” You have probably already guessed that the tax authorities can only answer this question with a yes. From our point of view, we are pleased that the authorities also recommend that you consult a tax advisor. Unfortunately, it is true that taxation can hold a few surprises for such situations.
Taxation of musicians and singers – benefit from tax relief
Musicians and singers must pay particular attention to VAT in order to take advantage of the tax relief provided by German tax law. You have to make the right decision when it comes to
- applying for the necessary certificates for tax exemptions,
- with regard to the small business regulation,
- the choice of the right tax rate and
- the correct issuing of invoices.
Incidentally, the tax authorities specifically point out that magicians do not receive tax relief. In our view, this represents a clear loophole in the law …
Taxation of musicians and singers – What event organizers need to consider
Depending on the circumstances, event organizers who bring artists’ performances to the stage may also have to comply with tax regulations that are not obvious at first glance. For example, after the event it is often too late for the necessary withholding of taxes and the payout to the artist was too high. The avoidable consequence for the organizer is an additional tax burden.
We therefore agree with the tax authorities and recommend that you seek tax advice. Feel free to contact us and arrange an appointment with our consultants.
You can find the OFD brochure here:
