BPG BPG Beratungs- und Prüfungsgesellschaft mbH

Professional associations

Professional associations

As an interest group, the professional association strives to strengthen the reputation, influence and economic situation of its members. Over the course of time, professional associations have acquired rights that were previously reserved exclusively for the holders of sovereign power. As a result, in terms of their significance and activities, they are classified between fully taxable civil law associations and public corporations or non-profit corporations. This general classification is also reflected in tax law. The same principles apply to taxation as for the taxation of associations.

If professional associations have their management or registered office in Germany, they are generally subject to unlimited corporation tax in accordance with Section 1 (1) No. 4 or No. 5 KStG. However, the focus on public tasks leads to the application of subjective tax exemptions, as is also granted to a large extent to public corporations and non-profit corporations. The type and scope of the tax exemption is decided for the respective assessment period; this generally corresponds to the calendar year.

Otherwise, professional associations are partially taxable. The most significant form of partial tax liability in everyday practice is due to the maintenance of a commercial business. Further tax obligations arise when tax-deductible investment income is received or in the context of the additional charge of capital gains tax on the profit from a business operation. The tax exemption of the other areas of the association remains unaffected.

Professional associations are always organized as corporations, but the specific legal form chosen has no influence on the tax assessment. Only professional associations may not have a public law character.

Particularly in view of the increasing scrutiny of professional associations by the tax authorities, the support of a competent advisor is essential.

In addition, the increasing pressure on costs and revenues also requires the optimization of processes for professional associations.

We are happy to support you with our expertise.

Focus of consulting

  • Timely use of funds (use of funds statement)
  • Creation of tax-permissible reserves
  • Differentiation between special-purpose operations and taxable business operations
  • Value added tax: tax liability, tax rate, input tax deduction
  • Articles of association: Compliance with tax regulations (§ 60 ff. AO)
  • Liability of board members
  • Donation law
  • Accounting obligations (BGB, HGB, EStG, PBV, articles of association)
  • Tax compliance management system (Tax CMS)

Ihre Ansprechpartner

Götz Löding-Hasenkamp

Auditor, Tax consultant
Managing Director / Partner

Thomas Froesch

Tax consultant
Managing Director / Partner

Tobias Reuter

Auditor, Tax consultant
Managing Director