The escort service includes accompanying men to events. A girl can offer sexual services if the client requests it. Many escort girls work for an agency. The agency takes care of advertising the girl and finding clients. Therefore, a contract is drawn up with the Escort, in which the conditions of cooperation are set out. As a rule, the contract also specifies the amount of the monthly payment to the agency for the services provided. What about taxes? All escort models pay taxes. Since prostitution is legalized in Germany, this type of activity must also be taxed.
Before we get into taxation, we need to understand the term “escort” in more detail. Escort is an English word. It means “accompaniment”. This means that young models accompany men to various events. The services that young women offer depend on the client’s desires. It can be:
Men choose their wives themselves on the websites of the agencies. But how do the escort women get into this agency? There are now many brothels and companies offering their services. The agency covers all costs for advertising the model on the website. A questionnaire is drawn up together with the young girl. So a man can immediately familiarize himself with the list of services she offers. A contract is drawn up between the escort lady and the agency, which specifies the monthly interest rate that the agency receives. But in Germany, prostitutes pay taxes. This amount is independent of the percentage that the companion pays to the agency. We will analyze below what the amount of tax depends on.
Many young women register with the tax office as self-employed. This form is much more convenient for both parties: the agency and the accompanying person. Prostitutes have to pay income tax, the amount of which is distributed over the year. There is also an entertainment tax. It depends on the profit made by the prostitutes. In Germany, prostitution is equated with a taxable activity. How much taxes does an escort model pay? The final amount depends on the monthly profit. Prostitutes have to pay 19% of the profits. However, income and expenses are also taken into account. Escorts are required to file a tax return.
Income tax is distributed in equal installments throughout the year. Payment is made quarterly. Escorts also form a tax bracket depending on their marital status. Single women are placed in the first tax bracket. Married couples receive tax class 3 or 5. It all depends on the couple’s income.
So from the article we can answer the question: Do prostitutes pay taxes? Yes, they do. In Germany, sexual work is a job like any other. If prostitutes want to get part of the taxes paid back from the state, they must fill out a tax return in a timely manner. The paper contains all information about expenses and marital status. After checking the tax return and calculating all expenses and income, an appropriate amount will be paid out. In Germany it is not possible to work illegally. The penalty for this is very high. It is better to organize the escort activity legally and pay taxes regularly.