Fees and reimbursement of travel expenses
January 24, 2011 | 20,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
A church support association, which supports the organization of Holy Masses, wants to list smaller amounts of money, which are paid to various organists (organ players) for church music accompaniment, in the income and expenses. These are small amounts of money (about 30 EUR per Holy Mass) that are well below the usual fees. What social security and tax regulations apply here and what information must appear on the receipts of the support association?
Furthermore, travel cost subsidies for the fuel costs of the clergy should be paid out. The amounts are below the tax-free 30 cents per kilometer driven. What information must be included on the receipt and what tax obligations does the support association have? Thank you!
Dear (s) inquirer,
A church support association is usually registered as an incorporated association (e.V.).
Since the organists work part-time with few hours per week for the registered association, there is no employment relationship between the association and the organist if the activity does not exceed an average of 6 hours per week. Therefore, there is no tax and social security liability. The organists declare the fee as income from self-employment (no business registration required) in their personal income tax return. For organists who earn no more than 2,100 euros annually, these amounts are completely tax-free (exemption limit). This limit also includes reimbursement for travel expenses.
The registered support association only needs to list the paid fee and the reimbursement for travel expenses on the receipt, along with the date.
Sincerely,
Ulrich Stiller
Tax consultant / Graduate Business Administrator
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