Student and side job as an escort lady
January 27, 2012 | 40,00 EUR | answered by Dr. Yanqiong Bolik
Hello,
I have been working as an escort for some time now, both through an agency and through the internet portal gesext.de. However, I am only 21 years old and still studying, so my parents still receive child benefit for me.
At the agency, I receive the full amount in cash and then transfer 1/3 to the agency as a transmission fee, and the same applies to gesext.de, except here it is 15% of the full amount.
What amount would now be tax-free for me, what do I need to declare? Do I deduct the transmission fees from the beginning, or does the tax-free amount apply to the pure payment? Do I need to declare anything at all?
Is there any way to earn more than the tax-free allowance (which is around 8000 euros per year, I have read) pay taxes regularly on my income and still continue to receive child benefit? It is important, of course, that my parents do not find out about the "special" earnings.
Thank you
Catharina A.
Dear questioner,
Thank you for your inquiry, which I am happy to answer taking into account your input and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information, or the ambiguity of information can change the tax result.
According to § 32 para. 4 of the Income Tax Act (EStG) in the 2010 version, an adult child is only taken into account if the income and benefits intended or suitable for the maintenance or vocational training do not exceed the threshold (exemption) amount of 8,004 EUR in the current assessment period. With the Tax Simplification Act 2011, this income and benefit limit for adult children in the family benefits system has been abolished. However, gainful employment is only disregarded until the completion of the first vocational training or a child's first degree (§ 32 para. 4 sentence 2 EStG).
In principle, being an escort is a commercial activity. You should report this activity to the trade office and your local tax office. In some regions, a flat-rate tax collection of income and sales tax is applied if the business owners do not want to be listed by name. But if your income remains below the exemption amount and you do not want to pay tax, you should submit a tax return after the end of the calendar year.
Income from escort activities is determined by subtracting expenses from earnings. Transfer fees are considered expenses. In addition, for example, travel expenses between your place of residence and the place of assignment are also considered business expenses.
If your total turnover in the first year does not exceed 17,500 euros, you can take advantage of the small business regulation according to §19 of the Value Added Tax Act (UStG). Then no sales tax will be levied.
I hope I could assist you.
If there is still uncertainty, please feel free to use the follow-up function.
Sincerely,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 9332 2657
Email: info@zdbz.de
www.steuerberatung.zdbz.de
