- Sep 3, 2020
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Every individual is taxed at the tax domicile, every activity that involves profit is considered work, the figure of donation is universal and deals with legal entities whose activities do not pursue profit. This is in all the countries of the world.I only know about German taxes what my friends told me about them. As I said before, they don't pay taxes on donations. If they were forced to pay taxes, they wouldn't return to Germany.
Donations between individuals depend on the local legislation (country or state in the case of USA) where at least the three cases that i know are included in the figure of “gift”, the rate in Germany being the one I already mentioned. In the USA it is taxed when it exceeds $18k (can reach 40%.). The “gifts” as a tax figure only correspond to individuals.
According to the laws of the state of California, Patreon does not qualify in any of the sections to be considered a taxable subject of donations, it is a for-profit company, therefore any money that is handled by them is considered a commercial transaction.
The other particularity that could fit in this case would be the Patronage Law, but each country has its own legislation on the subject and to be honest I am not going to read about the case in USA or Germany, since from the beginning Patreon is considered a commercial enterprise.
Finally, one example is anecdotal, not general law.