Self-employed professional

Self-employed professionals are individuals whose activity is expressly classified as a liberal profession under income tax law, such as artistic, literary, scientific or certain advisory work. They do not register a business, do not pay trade tax and generally calculate their profit using the simple income-surplus calculation.

Why this question directly affects performers

Anyone who works as a performer on their own account is self-employed. What remains open, however, is whether the income is classified as income from a liberal profession or as commercial income. For artistic activity, tax law requires an original creative contribution, meaning work in which personal expressive ability is discernible. Whether performing in front of the camera reaches this threshold depends on the individual case: on the role, the creative scope and the overall character of the activity.

There is no blanket answer for the industry. A leading role in a feature production with a script and dialogue can be justified differently from an engagement in which the production’s specifications determine everything. There are also activities that look more like trading: selling your own clips, subscriptions on a fan platform or merchandising. The tax office often classifies such revenue as commercial income.

What depends on the classification

• Registration: Self-employed professionals only notify the tax office that they have started their activity, using the questionnaire for tax registration. Commercial operators must additionally register a business with the municipality.
• Trade tax: This is only charged on commercial income, not on income from a liberal profession.
• Chamber: Commercial operators generally become members of the Chamber of Industry and Commerce; self-employed professionals without their own professional chamber do not.
• Accounting: For liberal professions, the income-surplus calculation remains sufficient regardless of turnover; commercial operators may be required to prepare balance sheets once certain thresholds are reached.

VAT is separate from this question. Self-employed professionals are also businesses for VAT purposes and can use the small-business scheme or charge VAT.

The risk of mixed activities

Many performers combine shoot days for productions with their own content. This is precisely when the distinction becomes difficult. If the areas cannot be clearly separated, the commercial side can taint the entire activity. Separate records, separate invoice series and a clear allocation of which income comes from where can help. The article Self-employed as a performer explains how registration and day-to-day operations are connected.

How to approach the decision

Describe your activity specifically and honestly in the questionnaire for tax registration: shoots for productions, your own platforms and other assignments. Whether the tax office agrees with your assessment becomes clear during registration and, at the latest, in the first tax assessment notice. Anyone who prematurely classifies themselves as a self-employed professional and is later deemed to be a commercial operator may have to pay trade tax retroactively for several years. Conversely, an unnecessary business registration mainly means extra work and chamber fees.

Have the classification professionally reviewed once before you start, especially if you plan to have several sources of income from the outset. A subsequent correction is possible, but more cumbersome than making a proper classification from the beginning.

This entry explains the term and does not replace tax advice.