When is the best time for me to have my fee paid out?
December 2, 2013 | 25,00 EUR | answered by Anton Pernitschka
Good day!
I am currently still in training to become a psychotherapist. During this time, my income is based on self-employment - it is initially held in an account of the training institute and I can gradually pay myself as fees, and of course I have to pay taxes on them at the end of the year.
So far this year, I have paid myself around 16,500 euros. There is still 9,000 euros on the institute's account that I can withdraw and pay taxes on whenever I want (and do not urgently need). Starting in March 2014, I will begin a permanent position with a gross income of 3180 euros (net income of 1,852 euros) per month.
My question is: Should I pay out the remaining 9,000 euros all at once at the end of this year, because I will pay less taxes overall? Or is it better to divide the amount over different months in 2013 and 2014? Or is it smarter to only pay out 1,000 euros each year for the next 7 years?
Thank you and best regards from Hamburg.
Dear questioner,
In the context of an initial consultation and your fee commitment, taking into account the regulations of this forum, I would like to answer your question.
According to the Federal Fiscal Court ruling of 30.10.1980, BStBl II 1981, 305, income is considered to have been received as soon as the recipient can economically dispose of it or has already done so. This is usually the point at which the performance is achieved. The achievement of performance is also considered to have occurred when the recipient is able to achieve the performance without any further action from the debtor who is otherwise willing and able to perform.
The term "receipt" is to be interpreted economically according to the Federal Fiscal Court ruling of 01.10.1993, BStBl II 1994, 179. According to this ruling, receipt only occurs when actual economic control over an asset is obtained; usually at the time of the achievement of performance or the possibility of achieving the performance.
Based on the facts, it can be assumed that the money accrued in the institute account is already considered to have economically flowed in, as you had the opportunity to access the money.
Sincerely,
Anton Pernitschka
Tax advisor
