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Draft Annual Tax Act 2025: Changes for NPOs

Auditing

The Federal Ministry of Finance (BMF) has presented a draft bill with the Tax Amendment Act 2025, which also includes the following changes to non-profit law:

  • an increase in the exemption limit for taxable economic business operations to €50,000 (Section 64 (3) sentence 1 AO)

  • an increase in the flat-rate allowance for voluntary work to €960 (Section 3 No. 26a EStG)

  • an increase in the allowance for trainers to €3,300 (Section 3 No. 26 EStG)

  • an increase in the liability limit under Sections 31a and 31b BGB to €3,000

  • the increase in the exemption limit for the obligation to use funds promptly to €100,000 (Section 55 (1) No. 5 Sentence 4 AO)

  • the waiver of sphere allocation of income for corporations with income below €50,000 (Section 64 (3) Sentence 2 AO)

  • the introduction of e-sports as a new charitable purpose (Section 52 (2) sentence 1 no. 21 AO)

  • the treatment of photovoltaic systems as a tax-neutral activity in the context of charitable status (Section 58 no. 11 AO)

Our assessment

The planned changes to non-profit law are a step in the right direction toward reducing bureaucracy and easing the burden on small and medium-sized tax-privileged entities. However, as this is only a first draft, future changes are reserved.

Do you have any questions or need assistance? Our NPO expert will be happy to assist you!

Contact:

Götz Löding-Hasenkamp WP StB Dipl.-Kfm
hasenkamp@crowe-bpg.de 
+49 211 73068-0

Authors

Götz Löding-Hasenkamp
Götz Löding-Hasenkamp

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