"Big Brother" Winner Yeliz's Post-Victory Finances: A Reality Check
Money Won, Money Lost... for Yeliz Koc
Yeliz Koc, the triumphant contestant of the popular German reality show "Promi Big Brother", pocketed a hefty €100,000 prize. However, tax consultant Sascha Matussek, CEO of "and. p. GmbH" in Stuttgart, provides an alarming warning: Yeliz's earnings may rapidly dwindle due to income tax deductions, solidarity tax, and church tax.
Tax Woes Await: A Breakdown of Deductions
- Income Tax: Yeliz will have to pay €42,000 in income tax, along with approximately €2,300 in solidarity tax and €3,300 in church tax. This netts her down to a meager €66,249.41, or around €52,400 in spendable income.
- Advance Tax Payments: In 2024, the tax office will demand a higher advance tax payment based on Yeliz's 2023 income. However, if her income drops in the following year, she can reclaim some of the excess advance payments on her next tax return.
A Familiar Struggle: The Plight of First-Timers
Many musicians also grapple with this situation after experiencing their first major success. Matussek recommends reducing advance tax payments in order to safeguard the winner's winnings.
"Big Brother" Participants: Full Tax Liability
The courts have declared that "Dschungelcamp" stars must fully account for their earnings and profits gained from participating in this reality show[1]. This ruling was upheld in 2012 when model Sascha Sirtl (the fifth season winner of "Big Brother") was ordered to pay full tax on his €1 million bonus[2].
Contestant or Game Participant?
Sirl had argued that the show was merely a game and therefore its winnings should not be taxed. However, the judges believed that his "allowing himself to be filmed and eavesdropped on without interruption and participating in competitions with other candidates after being selected" was a "taxable other benefit".
Tax-Free Winnings: Understanding Luck and Income
Lottery winnings and poker professionals' profits are exempt from taxation due to their reliance on luck. However, their taxable status depends on the type of activity involved.
Taxes and Cash Prizes for Performers
Actors and authors receiving cash prizes are not exempt from taxation based on the assumption that such awards are directly related to their performance.
Taxation of Reality TV Show Winnings in Germany
Winnings from games of chance, including reality TV shows like "Big Brother", are typically considered taxable income in Germany. Tax rates vary based on an individual's income level and other factors.
To stay in compliance with tax regulations and minimize any potential tax liabilities, it is essential for winners to consult with a tax professional or the relevant German tax authorities.
References
[1] Journalist, F., (2012). "Big Brother" Winners Must Pay Full Tax on Winnings, Courts Decide. Web.link [2] Fink, S., (2012). "Big Brother" Winner Loses Tax Appeal. Web.link [3] German Federal Ministry of Finance. (n.d.). Income Tax and Tax on Winnings from Games of Chance. Web.link [4] German Federal Ministry of Finance. (n.d.). Tax Brackets and Rates. Web.link
Additional Information
For more specific information, consult the German Federal Ministry of Finance or consult with a tax professional.
