Santa Claus and taxes
Compensation paid to Santa Claus is usually trade income, not wages. These instructions help you file Santa’s taxes correctly if you have requested a visit from a Santa Claus privately or on behalf of your company, or if you are acting as Santa yourself.
Compensation paid to Santa Claus by private individuals is trade income
You do not need to withhold tax on the compensation you pay to Santa if the amount you pay to a single individual during the calendar year does not exceed €1,500.
Check whether your Santa is in the prepayment register. Private individuals are usually not registered for prepayments, unless they carry out business operations or income-generating operations.
- If they are in the prepayment register, you do not need to do anything.
- If they are not registered for prepayments, report the trade income you pay to the Incomes Register. To do this, you will need the Santa’s personal ID.
Compensation paid to Santa Claus by companies is trade income
Check whether the Santa is in the prepayment register.
- If they are in the register, your company need not do anything.
- If they are not registered for prepayments, the company must withhold tax on the trade income they pay. The company must also report the trade income to the Incomes Register. To do this, the company will need the Santa’s personal ID.
How to report income if you are acting as Santa Claus
Compensation paid to Santa is taxable earned income (trade income).
Check your tax return when you receive it in the spring. If it does not contain information on the trade income paid to you, enter the details in the tax return.
You can also file any deductions relating to the trade income, such as travel expenses (€0.30/km in 2023 if you were driving your own car) and expenses for Santa’s attire.