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An association inquired whether financial compensation provided to volunteer musicians and conductors for transport and subsistence expenses was exempt from tax. The Directorate General for Taxes (DGT) ruled that these amounts constitute employment income and cannot qualify for tax-exempt meal and travel allowances because no formal employment relationship exists.
This ruling clarifies that reimbursements for volunteers do not benefit from the tax exemptions typically applied to business expenses, potentially increasing the tax burden on volunteer organisations and individuals.
The tax team reviews your specific situation.
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