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In your 2021 tax return, you can declare up to €6,340 in income from temporary jobs, teamwork or a cooperative economy without having to pay taxes. This is no longer possible this year. In fact, the Constitutional Court issued the alarm to the tax system on additional non-taxable income.
However, this does not mean that regular tax rates now apply to all income from additional activities. There is still an adequate tax system for the extra money earned in the cooperative economy and union work in the sports, social and cultural sector. On the other hand, for casual interpersonal work, this is no longer the case.
What is a favorable tax system?
If, in 2021, you do not earn more than 6,390 euros in addition to your income in the cooperative economy and the sports, social and cultural sector together, you benefit from a separate tax rate of 20%. A flat fee of 50% of gross income is deducted, bringing the actual tax burden to 10%. In addition, the association pays a solidarity contribution of 10%.
terms of the cooperative economy
For those who earn additional income within the framework of the cooperative economy, the appropriate system is permanent. This is the same system that exists for additional non-taxable income. TheThe platform must be recognized by FPS Finances.
The Annual ceiling 6,390 euros It indicates the total income. This includes not only the bonus paid by the platform, but also the discounts made such as prepayments and commissions for its use. There is no monthly maximum. Since February 1, 2021, approved platforms must withhold 10.70% withholding tax.
Conditions of trade union work in the sports, social and cultural fields
For union work in the sports sector, there was a temporary regime for income received between January 1 and December 31, 2021. It was limited to activities listed in the law. Two ceilings are applied: one yearly, but also monthly. You can earn up to €532.50 per month for an activity:
- sports infrastructure guard;
- Occasional or minor assistance or support in the area of administrative management, administration, archiving or in the context of logistical responsibility;
- Occasionally or on a small scale assisting in the development of newsletters and other publications, such as websites;
- Training, conferences and presentations in the sports sector.
If you have earned more than the authorized monthly or annual maximum, the monthly or annual income is taxed as occupational income.
for some sporting activities, The ceiling was 1,065 euros per month in the third quarter of 2021. For the other quarters, the cap of 532.50 euros was applied. This was the case for one person:
- Animator, leader, coach or coordinator who provides and/or accompanies sports activities;
- Athletic coach, sports teacher, sports coach, youth sports coordinator, sports referee, jury member, host, responsible for field, equipment or signal in sports competitions.
For income received from May 8, 2021, The positive system was also extended to unions working in the social and cultural sector. They are, on the one hand, artistic or art-artistic guides in the amateur arts sector, the artistic sector as well as the cultural education sector, and on the other hand, facilitators of training courses, conferences, presentations or cultural performances, artistic and community subjects in the social, cultural, sports, cultural, artistic and artistic education.
Thus, teachers, workshop providers, mentors, technical or technical trainers, among others, can use this scheme.
What if I earn more than the allowed limit?
If you have earned more than the authorized monthly or annual maximum, the monthly or annual income is taxed as occupational income. Accordingly, you pay tax based on the normal progressive tax scale, as well as your Social Security contributions.
Exceeding the monthly limit is irrefutable, which means that you cannot prove the opposite. This is not the case if you exceed the annual limit. So you need to be able to prove that it is not professional income, for example, that it is a hobby or that you do not engage in activities frequently enough.
What is the plan for 2022?
Nothing changes for the cooperative economy, since there is a stable condition already. There is a new system of specific activities in the sports, social and cultural sector. The annual income limit in 2022 is €6,540 for the cooperative economy and the sports, social and cultural sector combined. The monthly limit has been removed.
The number of working hours is limited. In sports clubs, union workers are entitled to work 450 hours per year (a maximum of 150 hours in the first, second and fourth quarters and 285 hours in the third quarter). In the cultural sector 300 hours/year (maximum 100 hours for the first, second and fourth quarters and 190 hours for the third quarter). Those who are active in both sectors can also work 450 hours per year. For working students the maximum is 190 hours/year.
Income from union labor and the co-operative economy must be declared in the second part of the declaration, fifteenth box. In Section B. Other Diversified Income, you can no longer declare income together. You are referring to the total amount of income from the co-operative economy under code 1460/2460 and withholding tax withheld under code 1461/2461. Code 1462/2462 is for union work.
Income from union labor and the co-operative economy must be declared in the second part of the declaration, fifteenth box. In Section B. Other Miscellaneous Income, You can no longer declare income together. you refer to The total amount of revenue of the cooperative economy Next to the code 1460/2460 and tax withholding Next to code 1461/2461. Code 1462/2462 intended for community work.