Corona situation: What to do if you receive income from social media platforms, streaming or fundraising campaignsNews, 3/17/2020
The coronavirus has caused many individuals and entrepreneurs to find new ways of working and earning income from home. For example, you may receive income from social media platforms and streaming services or through fundraising campaigns. You are liable to pay tax on these types of income.
If you do not have your own company, report this income on your tax return as other earned income. You can deduct the expenses caused by the production of this income from the amount of income you have received. These may include expenses for equipment or other materials.
Income received in the spring of 2020 is reported on the tax return you receive next year. If you also receive wages, you can take the other income into account on your current tax card.
If you have your own company, include the income received from and expenses caused by social media activities, streaming or funding campaigns in your company’s accounting and on your business tax return. Take the income into account in your prepayment assessment, as well.
Income received from a fundraising campaign is considered other earned income if donors receive compensation in exchange for their money, such as products, services, shares, memberships or participation in an event.
If no compensation is given to donors, you will need a fundraising permit from the police.
Example: individual taxpayer
You hold three separate concerts through a streaming service. You do not have a company, so you file the income and expenses on your own tax return. You stream the concerts from your apartment that you rent. You use a computer that you bought in the beginning of the year as well as a microphone you bought specifically for this purpose. You receive viewer donations through the streaming service.
File the income on your next year’s tax return as other earned income. You can claim deductions for the entire price of the microphone and a part of the price of the computer. If you can prove that you have used the computer for work, you can deduct 50% of its purchase price, which was €1,200. You can therefore claim €600 as a deductible expense. The cost of your internet connection is also deductible. You can claim a deduction for 50% of the costs for the months during which you used the connection for work.
You can claim the standard deduction for home office costs. If you earn occasional secondary income by working from home, the deduction is €225. The standard deduction includes all indirect costs caused by working from home.
You can request that the end total of your income is taken into account on your tax card as other earned income. This way, you will pay the taxes on the income before your final tax assessment.
If you work as a private individual:
- Keep notes of your income and expenses.
- Check your pre-completed tax return in MyTax.
- Remember to take your income into account on your tax card.
- Keep all receipts and other documents for 3 years after your tax assessment has been completed.
If you work through your own company:
- Include the income and expenses in your company’s accounting and on your business tax return.
- Remember to take your income into account in your prepayment assessment.
- Remember to also take any VAT into account.