We care about non-profit organisations and don’t only advise you on tax law, legislation and profitability; in association tax law there is usually no business-as-usual and therefore we are also experts and facilitators in special cases.

We advise on the following:

  • Foundations (independent, dependent or as a double foundation and other structures)
  • Non-profit limited liability company under German law (GmBH)
  • Registered association (e.V.)
  • Non-profit stock company
  • Employed special-purpose enterprise of non-profit organisations

On Corporation Tax

As corporate bodies in civil law, clubs are subject to corporation tax. However, all clubs with non-profit status are exempt.

On Business Tax

Non-profit clubs are equally exempt from the business tax.

Exceptions

Clubs engaged in commercial activity are only conditionally exempt from business tax. Exemption is granted according to particular criteria and income limits. A distinction is made between:

  • tax-exempt non-material area
  • tax-exempt asset administration
  • tax-privileged objective-related business operations
  • taxable profit-making business operations

Income liable to taxation is exclusively limited to income from commercial business activities. Gifts, donations, public subsidies are exempt. Rental income and leases are not subject to taxation, insofar as they fall under the heading of asset administration.

We will gladly assist in the establishment and tax structuring of charitable bodies. This also includes changes from and to non-profit status.