Santa Claus - self-employed or commercial enterprise?
Which fiscal aspects a Santa Claus must consider with a booking, in order not to become punishable, knows Professor Dr. Matthias Hiller, professor for account system at the SRH remote university - The mobile University.
Anyone who gets hired as a Santa Claus at Christmas time should keep in mind which type of income is attached to the activity. "Of course, this also applies to Christmas angels and other Christmas messengers," says Prof. Hiller. A distinction is made between income from business, income from self-employed work or non-self-employed work.
The allocation is relevant because income from a business is also subject to trade tax. In practice, however, the delimitation causes difficulties time and again, which is why this issue has already been the subject of numerous rulings. "In the case of income from self-employed work, the use of one's own labour must be in the foreground. In the case of income from trade, on the other hand, it is the operating performance achieved with the use of capital or the reallocation of assets," explains Prof. Hiller.
Legal framework
When classifying, it is important to note: Santa Claus does perform the activity personally and has only a small capital investment in the form of a coat, shoes, beard and sack. However, Santa Claus does not usually require any special expertise for this activity - a simple "Ho-Ho-Ho" is already sufficient as a qualification to find an engagement at Christmas markets, club associations or in companies.
However, the activity of Santa Claus does not correspond to the so-called catalogue professions (liberal professions) of § 18 EStG. Likewise, it is not to be classified as artistic, as there is no creative talent of one's own. This is because Santa merely wears a costume. In addition, he did not invent Santa Claus himself and does not perform an artistic act. In addition to the income tax classification, entrepreneurially active Santa Clauses must also pay attention to special features with regard to turnover tax.
"For Santa Claus, this means that not only the distribution of gifts is a sweaty occupation, but also the tax aspects can be. So that the shining children's eyes do not remain the only reward, Santa Claus, angels, Santa Claus and Co. should also deal with the tax classification. From 24 December onwards, there will be a good year's time for this," is Prof. Hiller's recommendation.
SRH University of Applied Sciences - The Mobile University
The state-recognized SRH Fernhochschule - The Mobile University specializes in part-time study. As a quality leader in distance learning, it has been offering flexible and customizable studies parallel to work, training or family for over 20 years. The personal support and numerous mobile learning elements enable a location and time-independent study, which can be optimally integrated into any specific life situation. Their range of courses includes Bachelor's and Master's degree programmes as well as university certificates in the fields of Business & Management, Psychology & Health and Science & Technology. Currently, over 4,300 students are enrolled at the university.
