Wegweiser Associations & NGOs · Law and taxes for volunteers and non-profit organisers Deutsch

💼 Taxes in the association: thresholds, commercial activity, tax return

€50,000 threshold, corporation tax allowance, small business rule and what you state in the tax return.

commercial activity threshold corporation tax VAT small business activity serving the non-profit purpose (Zweckbetrieb) allocation to spheres

In brief

Non-profit associations are in principle tax-exempt. But this does not apply to income from a commercial activity (wirtschaftlicher Geschäftsbetrieb), for example a club fête with sales that is not an activity serving the non-profit purpose (Zweckbetrieb).

Since 2026: if the income from such taxable activities together is at most €50,000 a year (including VAT), no corporation tax or trade tax is due on it. Until then the figure was €45,000.

For income up to €50,000 the check of §§ 65 to 68 AO (conditions for a Zweckbetrieb) does not apply, but only if an overall profit is made. For VAT there is a separate small business rule (€25,000 in the previous year).

Step by step

  1. Sort income by sphereIdeal sphere, asset management, Zweckbetrieb, commercial activity.
  2. Add up the income of the taxable activityAll income including VAT counts. Is it at most €50,000?
  3. Check VATSmall business scheme: previous year at most €25,000, current year at most €100,000.
  4. File the tax return on timeElectronically with Anlage Gem; cycle (administrative practice) determined by the tax office.

Deadlines

€50,000
Threshold for taxable commercial activities (income including VAT). Exceeding it by one euro makes the entire profit taxable.§ 64 Abs. 3 AO
€5,000
Corporation tax allowance, at most equal to the income.§ 24 KStG
€25,000 / €100,000
Small business limits: previous year €25,000 not exceeded, current year at most €100,000.§ 19 Abs. 1 UStG
Watch out – common mistakes
  • It is a threshold (Freigrenze), not an allowance: even one euro above makes everything taxable (wording "must not exceed €50,000").
  • Splitting into several organisations just to use the threshold several times is abusive (§ 64 Abs. 4 AO).
  • Sports events are a Zweckbetrieb (activity serving the non-profit purpose) if total income does not exceed €50,000 a year (§ 67a Abs. 1 AO).
  • Special VAT rules and the trade tax allowance are not checked here in detail.
In depth · legal basis, figures and practice – for advisers and professionals

Taxable commercial activity

Under § 64 Abs. 3 AO, income including VAT from commercial activities that are not a Zweckbetrieb is not subject to corporation tax and trade tax if it does not exceed €50,000 a year in total. Several such activities are combined (§ 64 Abs. 2 AO). The increase from €45,000 to €50,000 entered into force with the Steueränderungsgesetz 2025 on 1 January 2026. For income (overall limit) up to €50,000, only the check of §§ 65 to 68 AO is dropped, and only if an overall profit is made (§ 64 Abs. 3 Satz 2 AO).

Flat-rate profit

§ 64 Abs. 6 AO allows flat-rate profit calculation at 15 per cent of income for certain activities (advertising for businesses, totalisators, blood donation services).

Corporation tax and VAT

The allowance under § 24 KStG is €5,000. Under § 19 Abs. 1 UStG a small business is one that did not exceed €25,000 in the previous year and will not exceed €100,000 in the current year.

Tax return

Non-profit associations file the corporation tax return electronically with Anlage Gem. The three-year cycle is administrative practice (§ 149 AO in conjunction with § 63 Abs. 5 AO), not laid down in the law; the first return is filed in the first year after founding.

Who is responsible
  • Competent tax office
  • Tax adviser
Further reading
Non-profit status (§§ 51 ff. AO) and exemption notice (Freistellungsbescheid)Transparency register, bookkeeping, accounting, dissolution

Quick questions

Worum geht es bei „Taxes in the association: thresholds, commercial activity, tax return“?
€50,000 threshold, corporation tax allowance, small business rule and what you state in the tax return.
Which deadlines and figures matter?
  • €50,000: Threshold for taxable commercial activities (income including VAT). Exceeding it by one euro makes the entire profit taxable. (§ 64 Abs. 3 AO)
  • €5,000: Corporation tax allowance, at most equal to the income. (§ 24 KStG)
  • €25,000 / €100,000: Small business limits: previous year €25,000 not exceeded, current year at most €100,000. (§ 19 Abs. 1 UStG)
What should I do first?
  • Sort income by sphere: Ideal sphere, asset management, Zweckbetrieb, commercial activity.
  • Add up the income of the taxable activity: All income including VAT counts. Is it at most €50,000?
  • Check VAT: Small business scheme: previous year at most €25,000, current year at most €100,000.
What do I need to watch out for?
  • It is a threshold (Freigrenze), not an allowance: even one euro above makes everything taxable (wording "must not exceed €50,000").
  • Splitting into several organisations just to use the threshold several times is abusive (§ 64 Abs. 4 AO).
  • Sports events are a Zweckbetrieb (activity serving the non-profit purpose) if total income does not exceed €50,000 a year (§ 67a Abs. 1 AO).
Evidence
  • AO § 64, gesetze-im-internet.de, retrieved 20 September 2026
  • KStG § 24, gesetze-im-internet.de, retrieved 20 September 2026
  • UStG § 19, gesetze-im-internet.de, retrieved 20 September 2026
  • Flick Gocke Schaumburg, blog on the Steueränderungsgesetz 2025, fgs.de, retrieved 20 September 2026
As of

September 2026 · Sources and method

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