Bavaria Seeks Lower Taxes and Less Bureaucracy for German Associations

Bavaria wants associations across Germany to receive substantial tax relief. Minister President Markus Söder said the state would use a Bundesrat initiative to push for lower taxes and less bureaucracy for clubs and nonprofit organizations.

The Bavarian cabinet's proposal contains two main tax measures. It would double the profit allowance for activities such as festivals and anniversary events held by nonprofit associations from 5,000 euros to 10,000 euros. Associations would not pay tax on income up to that amount. The proposal would also double the taxation threshold to 100,000 euros.

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Both voluntary work and our associations are an essential support for society and strengthen social cohesion. Anyone who works for the public good should also receive as much support as possible from the state.

Bavarian Finance Minister Albert Füracker described voluntary work and associations as an important support for society and social cohesion. He said people who work for the public good should receive strong state support. Füracker also argued that associations should be able to focus on their work instead of additional administrative requirements.

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Our associations must be able to concentrate on what matters. We must not burden them with additional bureaucracy. The principle must be association work instead of bureaucracy.

Under the plan, small nonprofit associations would be allowed to submit a simplified tax return. Bavaria also wants to continue pursuing the complete abolition of the requirement for organizations to use funds within a specified period, a change the federal government had itself proposed two years ago.

Nonprofit associations already receive extensive tax exemptions and benefits, but federal rules require detailed tax declarations and supporting records. Bavaria says those obligations often create a significant administrative burden.

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Quite substantially reduce taxes for associations.