Strengthening of honorary office through the Annual Tax Act 2019

The states, through the Bundesrat, have proposed several improvements to nonprofit tax law as an amendment to the 2019 Annual Tax Act.

In September, the finance ministers of the German federal states agreed to introduce various improvements to non-profit law to strengthen volunteerism in the ongoing deliberations on the 2019 Annual Tax Act. One of the plans is to increase the lump-sum allowance for exercise leaders by 600 euros to 3,000 euros per year. In addition, the honorary office lump sum is to increase by 120 euros to 840 euros. The limit up to which a simplified procedure applies for the confirmation of donations is also to be increased from 200 euros to 300 euros. In addition, the exemption limit for income from business operations that are not subject to corporate income tax and trade tax and are not special-purpose entities is to be raised from 35,000 euros to 45,000 euros. Finally, a statutory trust protection provision is planned to simplify cooperations and the transfer of funds among non-profit organizations.