EU pensioner (43 years old) writes a book.
April 6, 2011 | 35,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Dear Sir or Madam,
After several cancer therapies, I have been a disability pensioner since 01.01.2011 with a pension of 1530 euros. In addition, I receive disability insurance benefits of 1540 euros, each per month.
Since I have been at home, I have been writing a book about my story.
Here is my question:
The publisher expects a high circulation with a five-figure profit. Will my pension be affected by this and how will it be taxed? Will I lose my entitlement to a pension as a result? Do I need to register as self-employed?
Thank you.
Dear Seeker,
Thank you for your inquiry, which I would like to answer based on your information and in the context of your commitment in a first consultation as follows:
The taxation of the EU pension from the statutory pension insurance is based on the taxable portion. Since the pension began on 01.01.2011, 62% of the pension, which is approximately 948 euros per month, is subject to taxation.
The supplementary pension is likely a pension from a private insurance. Here, the taxation is based on the yield portion. If the duration of this pension is not limited, then at an entry age of 43 years, 35% or 539 euros per month will be taxed. If the duration is limited, for example, if the pension runs until the age of 60 (17 years), then 18% or approximately 277 euros per month are subject to taxation.
You can earn up to 400 euros per month from the statutory pension, and self-employment generally excludes the receipt of a disability pension. You should clarify this with the pension insurance providers.
Your income from the book is income from a literary activity. This activity is considered freelance under § 18 para. 1 no. 1 EStG and not commercial, so you do not need to register a business for this activity.
However, if income is generated, you must report this activity to the tax office.
I wish you all the best, much strength, and hope I have been able to help you.
Best regards,
Ulrich Stiller
Tax advisor/Diploma in Business Administration
