Charitable (non-profit making) organizations
Another main aspect of our performance range is servicing the requirements of non-profit making organizations. These include foundations, associations and also charitable GmbHs or AGs (private or public limited companies).
A tax hurdle has to be overcome in order to be recognized as a charitable institution and in order to be able to utilize the resulting benefits. The charitable institution aspect has to be established by the responsible tax office on the strength of an application and the actual management has to be directed in the aforesaid direction. Appropriate statutes have to be prepared and associations have to be entered in the Associations Register, for example. Organizations have to pursue charitable, religious or benevolent objectives.
In this process, we are also at your disposal as from the date of your idea up to the actual implementation in order to be able to overcome all the related hurdles and problems. We are naturally also available to you as a trustee, e.g. for holding shares or administering funds and for the administration of trustee foundations, of course.
Numerous benefits have been established by legislators for charitable corporations; we show you how you are also able to benefit from them:
- The exemption of charitable corporations from land tax, inheritance tax and gift tax and, since January 1, 1993, interest income tax (so-called “withholding tax” on capital gains); regulations on tax concessions are to be found in Sections 51 to 68 of the German Tax Code (Abgabenordnung - AO). This includes “charitable purposes” (in Section 52 AO), “benevolent purposes” ( in Section 53 AO) and "religious purposes" (in Section 54 AO). The tax concession not only includes benefits but also additional accountability obligations and tax risks – it is therefore urgently recommended that expert advice is obtained;
- The possibility to issue donation confirmations for monetary and benefits in kind to charitable corporations which are deductible by the relevant donors for income tax purposes (up to certain maximum limits);
- The public promotion of charitable corporations by regional states and local authorities is likewise dependent in most regional states and local authorities on the specification of the relevant charitable purpose;
- Tax exemptions for trainers, promoters and tutors, inter alia, and ancillary activities up to euro 2,100 p.a.;
- Tax exemption on the expense flat rates of euro 500 for all honorary activities. A parallel claim of the training manager’s allowance is not possible;
- Tax exemption of special purpose operations from corporation and trade tax;
- Tax exemption the business of charitable corporations and the limit of special purpose operations for the sporting events of a sports association from corporation and trade tax up to an annual income of euro 35,000;
- A general sales (value-added) tax rate of 7 % on sales by special purpose operations;
- A number of banks waive account maintenance charges if a charitable purpose is documented.
Contact us
Unigarant Berlin GmbH
Steuerberatungsgesellschaft, Treuhandgesellschaft
Berolinahaus
Alexanderplatz 1
D - 10178 Berlin
Tel. +49 / (0)30 / 44 32 42-0
Fax +49 / (0)30 / 44 32 42-33
zentraleBerlin@unigarant.de