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tax treatment of gambling line compensation etc.

The news of 5.10. 2010 on taxation of "referee fees" has caused a lot of attention, where the g eFunds consensus among financial authorities on the question type of income ("other income") should be informed. The following are the new interpretation on which the DHB-Law has published today.

first

payments of game management, participation and flat expense allowances (also called "referee fees") on national sports are generally regarded as activity fees and fall under the other income under § 22 No. 3 ITA. Other income under § 22 No. 3 ITA are up to 255 EURO per year tax free for the recipient (open borders, no allowance). However, you must be specified in the tax return. If this threshold is exceeded, the full amount is taxable.

second

volunteering package (allowance) to § 3 No. 26a ITA: can Additionally, the said persons € 500 per year tax-exempt tax-free to work in the field of sport (circle class - 3rd League) was obtained.

third
Example: A referee receives € 755 in tournament management compensation. There are no taxes. Volunteering offers € 500 and € 255 threshold to be considered. Referee B is in the year 756 €. In this case, 256 € taxable, ie, the other likely to add to the taxable income as the threshold was exceeded by 255 €. The volunteer package is to be considered as a deduction.

4th
No sales tax: According to § 4 No. 26b USTG are not subject to VAT, as the "voluntary work" by The sales tax is exempt.

5th
Actual reimbursement of expenses (eg travel - and accommodation costs), as previously tax-free. Is for a display in connection with the referee not a substitute function by a third party can be this amount tax deductible (expenses deduction).

6th
for the association / club as the host / organizer of games, there are no tax obligations for the payments to referees etc. For the tax treatment is only the recipient is responsible.

Source: DHB-Law