Tax Advice for Associations in Germany

As a law firm specializing in legal and tax advice for associations and federations, we offer charitable associations as well as professional and trade associations the entire bundle of services they need for their daily work - in tax law for associations and far beyond. For us, advising the third sector is not just a fashionable “add-on business”, but has always been a key focus of our daily work.

An important topic here is always the classification into the four spheres of charitable status (charitable sphere, asset management, special-purpose operations and taxable business operations) in order to avoid tax disadvantages. The law regarding donations is also relevant for many associations and correct donation receipts need to be issued. Challenges can also arise when it comes to the taxation of associations or association activities (e.g. events).

Professional tax advice for associations ensures that all tax obligations are met without the organization taking unnecessary risks. Errors in accounting or tax returns can have serious consequences. These include

• withdrawal of charitable status
• substantial additional payments to the tax office
• loss of image
• fines or criminal tax proceedings

Ongoing tax advice for an association usually begins immediately after its formation. We therefore also provide ongoing tax advice to almost all associations and societies that we have already assisted with their formation. This builds trust on both sides right from the start. Short and well-established communication channels allow for individual solutions and enable potential problems to be identified well in advance so that serious legal and tax difficulties do not arise.

Of course, we are also happy to take over the mandate of your previous advisor. In many cases, such transfers of mandate are necessary if it turns out in retrospect that the previous accounting does not meet the requirements of proper tax advice for associations in all respects because the special tax features to which associations and federations are subject were not taken into account. In these cases, there is usually only one thing that helps: a thorough review and subsequent contact with the former advisor and the responsible tax office in order to then keep the books lege artis again, to meet the requirements of the tax authorities and - in the case of nonprofit organizations - not least to secure the charitable status.

Has your charitable status already been revoked? In this case, contact our attorney for revocation of charitable status. We will help you find a way out.

We offer tax advice and accounting for your association at fair conditions. Our comprehensive services include

• ongoing bookkeeping,
• the preparation of tax returns and advance tax returns as well as
• the necessary annual financial statements.

We charge your association the standard rates set out in the German Tax Advisor Remuneration Ordinance. Any additional work is usually charged on a time basis. Despite our high degree of specialization in tax consultancy for associations, you can therefore always expect competitive pricing for our services.

Tax advice is also becoming increasingly digital. We offer our clients modern solutions, such as digital accounting systems, which significantly reduce the administrative burden. With the appropriate tools, receipts can be conveniently uploaded, tax documents can be viewed digitally and tax returns can be processed efficiently. This saves time for everyone involved and ensures greater transparency and security when handling sensitive data. By automating many processes, your association has more time to concentrate on its actual tasks. With the introduction of e-invoicing in 2025, associations cannot afford to miss out on digitalization.