Volunteer fee

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The volunteer fee may, in certain circumstances, have tax consequences for the volunteer.

For a volunteer, these tax codes are anything but pleasant, specific or clear.

For the organisation, this is administratively quite a hassle. Withholding tax must be paid and tax certificates must be issued.

Voluntary work is not at all profitable, nor is it an independent activity. These codes and descriptions are very confusing for both the volunteer and the organisation.

Nevertheless, volunteers have to fill in the following codes on their income tax.

Income tax on voluntary allowances
Tax code Official label Description
1650 Profitable activities The total amount the volunteer received
1758 Withholding tax on self-employed persons Withholding tax on earned income

Volunteer fees, which are already not high, are thus taxed at a rate of at least 40%. This may discourage both the volunteer and the organisation from taking any initiative, accepting or paying a fee.

Note that reimbursements are not taxed. However, they must be supported by invoices or receipts.

There exist an alternative: volunteer allowances, free of tax.

See also