- Honorarium
An honorarium is an "
ex gratia " payment made to a person for their services in a volunteer capacity or for services for which fees are not traditionally required. This is used by groups such as schools or sporting clubs to pay coaches for their costs. [http://ethics.wa.gov/opinions/99_03.htm An example of the rules for payment of an honorarium in theUnited States .] [http://www.athrec.mcmaster.ca/clubs/forms/2006-2007/Athletic%20Sport%20Clubs%20Manual%20-%202007.pdf A Canadian example of the use of an honorarium.] Another example includes the payment to a guest speaker at a conference to cover their travel, accommodation, or preparation time.Australia
An example of this are the payments made by
Australian schools to their sporting coaches [http://www.bgs.qld.edu.au/news/2007Newsletters/2007_news10.pdf An example of an Australian school paying a coaching honorarium.] . They are ostensibly receiving a reimbursement for their costs in their voluntary role as coach. The concept of an honorarium has a tax implication. In Australia recipients of these funds make a tax declaration (known as the hobbyist form) [http://www.ato.gov.au/print.asp?doc=/Content/8729.htm Australian tax law regarding the payment of honoraria.] to the tax office and therefore do not have to include this money in their annual tax return.Canada
In Canada, honorarium is considered as salary and thus, taxable income under the "Income Tax Act". [http://www.queensu.ca/fins/info/howtopay_honorarium.html How to Pay an Honorarium] ] [ [http://www.fmbs.gov.nt.ca/FAMWeb/1800/pdfs/1819individhonoraria.pdf Individual Honoraria>] In the case where a gift is substituted for honorarium (gift in lieu of money), it is still classified as a taxable benefit by
Canada Revenue Agency . [http://www.queensu.ca/fins/info/howtopay_honorarium.html How to Pay an Honorarium] ]In case where honorarium is paid to individuals not resident in Canada, it is still subjected to income tax withholding (usually 15%) unless prior approval was obtained from Revenue Canada. [ [http://fhs.mcmaster.ca/pathology/documents/Hooker-Terms-of-Reference-April07.doc THE HOOKER DISTINGUISHED VISITING PROFESSOR TRUST FUND] ]
Hong Kong
Honoraria are subjected to taxation under HK Laws. Chap 112 "Inland Revenue Ordinance" and also subjected to the
Mandatory Provident Fund , a compulsory saving scheme for retirement. [ [http://www.aud.gov.hk/pdf_e/e43ch01_summary.pdf Report No. 43 of the Director of Audit ] ] [ [https://www.hku.hk/apptunit/faq.html Mandatory Provident Fund] ]Indonesia
Under Indonesian National Laws, honorarium recipients is subjected to withholding tax under Income Tax Article 21. [ [http://www.indonesia-ottawa.org/economy/INCOMETAX/pph01.htm ARTICLE 21 INCOME TAX] ] [ [http://www.pajak-indonesia.com/Words/Eng/books.htm Taxation of Expatriate Employee] ]
New Zealand
When honorarium is paid to an employee, such as mayors, chairpersons and local clubs and societies, it is not subject to withholding tax but are subject to income tax. [ [http://www.ird.govt.nz/payroll-employers/make-deductions/staff-benefits/special-benefits/emp-deductions-benefits-special-honoraria.html When to tax honoraria] ] However, if the payment was not made to the above mentioned category of people, it is subject to withholding tax rate between 33c to 48c. [ [http://www.ird.govt.nz/payroll-employers/make-deductions/withholding-tax/emp-deductions-salaries-wt-activities.html Activities subject to withholding tax] ]
United Kingdom
Honorarium is treated for tax purposes by Inland Revenue as taxable income and
national insurance , if applicable. [ [http://www.methodist.org.uk/index.cfm?fuseaction=opentoyou.content&cmid=65 VOLUNTEERING WITH THE METHODIST CHURCH] ] [ [http://www.moot.org.uk/pdf/trt_editor.pdf Editorship] ]United States
Honorarium paid to a U.S. resident for services performed within or outside the U.S. is subject to federal (and in some cases state) income tax. [http://www.fin.ucar.edu/guide/honor.html Honorarium Payment Guidelines] ]
ee also
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