When you start streaming on the well-known platforms such as Twitch and YouTube and reach the Twitch affiliate status, for example, the question quickly arises as to how the revenue from streaming is taxable. Because their viewers can support you via subscriptions, donations and tips. This article deals with the taxation of streaming income, in particular which conditions are bound to a business. In addition, it is briefly explained which form should be used for a tax declaration, as well as which expenses can be taken into account.

When you start streaming on Twitch, Mixer or YouTube, your viewers can support you with subscriptions or direct donations (tips, donations), which go directly and indirectly to the streamer. This allows your viewers to support your stream and thank you for the ‘entertainment’. In return, viewers will receive a name mention in the stream and/or get name addition and emotes unlocked in the chat. The entertainment factor of the stream is a crucial focus.

Rightly, of course, the question arises: Do I have to tax this income?

Taxation of streaming revenue

The revenue from streaming meets all the requirements of a classic commercial operation. According to § 15 (2) EStG, a commercial enterprise requires an independent, sustainable activity, which is undertaken with a profit intention. Participation in general economic transport is also presupposed and exists, since the stream is not a “closed company” or only accessible to certain people.

2.1 The Requirements for a Streaming Business: Independence and Sustainability

An independent, sustainable activity is present in streaming, since the activity takes place in your own (artist) name and at your own risk and initiative (independence). Both the profits and possible losses are yours, and you have the responsibility of the channel in your hands. Since there is a repeat intention (“not only unique”), sustainability is also present.

2.2. The requirements for a streaming business: profit intention

The profit intention means that the company makes a profit in the future. Initial losses are regularly recorded in new companies, which is why a period of, for example, ten years is examined via a so-called total forecast. The investigation then usually comes to the conclusion that a profit is incurred over the entire period.

The profit intention is important above all for the distinction from the hobby: hobby exists when your company only makes losses. In such cases, the tax office assumes that this activity is not a company for you (key point: livelihood) but a pure hobby.

In terms of streaming, it can be said that although costs are already incurred in the initial phases due to technology, software, etc., on the whole a profit is generated.

2.3. Why is there no artistic activity in streaming?

The question often arises as to why independent income (§ 18 EStG) cannot also be considered. On the one hand, self-employed income would require a free profession (for example, lawyer, tax consultant, architect, doctor), but it also applies to artistic, teaching activities.

For example, if you are organizing a creative stream (drawing, crafting, etc.), you could already come to this consideration. However, the prerequisites for this are sharply described in literature and financial management concept. In addition, there would be another problem in such cases: streaming is entertainment. And entertainment is not an artistic activity in this fiscal sense. Also harmful here is the advertisement, which is placed before or during the streams.

Since streaming as an activity regularly meets such requirements, the streaming activity constitutes a commercial enterprise. Thus, the income from streaming is also taxable in the income tax return. For this purpose, reference should be made to Annex G and the corresponding Annex EÜR.

3.1. Operating expenses

Revenue represents gross profit. In order to move from income to income, operating expenses must be deducted. For example, operational expenses and costs of a streamer could include: