Katalogberufe for Freelancers: Classification is Decisive for Status

But who actually qualifies as a freelancer? The Income Tax Act (EStG) provides clear guidance on this. The Act lists so-called Katalogberufe — designated professions — for freelancers.

If you work in one of the listed professions, you generally belong to the category of freelancers. This does, however, presuppose that you are engaged in self-employed activity.

If you earn your living as a self-employed journalist, for example, you are counted among the freelancers. If, on the other hand, you work for a newspaper publisher, you are earning your income as an employee.

In § 18 of the Income Tax Act (EStG), the legislature unambiguously defines self-employed individuals in certain professions as freelancers. If you are self-employed in one of the listed Katalogberufe, you are engaged in freelance activity.

You need not fear any difficulties with the tax office — the competent authority will accept your classification without question. The tax inspectors waive any separate individual case examination.

The list of Katalogberufe encompasses a wide variety of professional profiles. This is due to the broadly framed definition, which covers different fields of work. In addition to the Income Tax Act, the Act on Partnerships (PartGG) is relevant here: § 1 para. 2 PartGG contains supplementary remarks.

Liberal professions accordingly require either a particular professional qualification or a creative talent.

The activities may be based in one of the following fields:

• scientific
• artistic
• literary
• teaching
• educational

The services provided by freelancers are of a higher-order nature. These definitions and descriptions leave room for interpretation — which is why the legislature decided to create clarity by means of a list of Katalogberufe.

The Katalogberufe for freelancers:

• Doctors, dentists, veterinary surgeons
• Lawyers, patent attorneys, notaries
• Engineers, surveying engineers
• Architects
• Auditors, tax advisers, consulting economists and business consultants, sworn auditors, tax agents
• Journalists, photojournalists
• Interpreters, translators
• Naturopaths, physiotherapists, dental practitioners
• Commercial chemists
• Pilots

The legislature expressly notes in § 18 EStG that the list of Katalogberufe for freelancers is not exhaustive. At the end of the list, it refers to similar professions that may fall within the definition of freelance activity.

In practice, it is usually the Federal Court of Justice that decides whether a profession qualifies as freelance activity. Similar professions recognised by case law include, among others:

• Care workers for the elderly
• Occupational therapists
• Masseurs
• Midwives
• Historians
• IT specialists
• Town planners

Digitalisation means that the professional world is subject to dynamic change. New professional profiles are constantly emerging. In many cases, the question arises as to whether these professions fall within the definition of the liberal professions or that of the trader.

Your profession is not among the Katalogberufe? And there is no relevant decision from a higher court either? Contact Guhr Steuerberatung in Berlin! We will provide you with valuable guidance and represent you before the tax authorities.

Consulting tax experts is also worthwhile when your situation requires an individual case review. This is particularly common with similar professions. Experienced tax advisers at Guhr Steuerberatung will analyse your case and, if necessary, lodge an objection should the tax office refuse to classify you as a freelancer.

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