Annual Tax Act 2026: Higher tax-free allowance for foreign artists’ fees

The government’s recently published draft of the Annual Tax Act 2026 (JStG) has clarified the increase in the exemption limit under Section 50a of the Income Tax Act (EStG) for persons subject to limited tax liability. From the 2027 tax assessment period onwards, the de minimis threshold for performances by foreign artists, DJs or speakers is to be raised from the current €250 to €500 per performance.

Up to this threshold, the organiser is not required to make a direct tax deduction at source. This is intended to simplify the booking and accounting procedures for international line-ups and smaller guest appearances by foreign performance artists.

The planned change is particularly relevant for artist agencies, event organisers and festival organisers. For smaller international guest performances, this could significantly reduce the administrative burden involved in settlement.