Finance: Certain associations are supposed to pay higher taxes

Berlin. Large clubs in Germany may soon face higher taxes. Finance Minister Lars Klingbeil (SPD) wants to significantly reduce the tax exemptions for taxable clubs. This is according to a draft from the Ministry of Finance, which was first reported by "Bild". Non-profit clubs, such as small sports clubs, music clubs, environmental and animal protection associations, welfare, fire brigade and homeland clubs, would not be affected. They are exempt from almost all taxes due to their recognition as non-profit organizations.

Not non-profit are clubs that pursue economic interests. These can include economic associations, clubs with large real estate portfolios, but also professional sports clubs. For them, a tax exemption of €5,000 should be replaced by a tax-free limit of €1,000 in the future. Income up to €1,000 would remain tax-free, but as soon as higher profits are made, the entire income would be subject to tax.

The draft law is currently being approved by the German government. In the next step, statements from associations and those affected would be obtained before the cabinet and Bundestag deal with it. The Bavarian Ministry of Finance is concerned that smaller clubs could also be affected - for example, if they organize a festival and make profits from the sale of sausages and drinks.

However, income from such activities is tax-free for non-profit clubs up to a limit of €50,000 gross - regardless of the amount of profit. "Both voluntary work and our clubs are an essential pillar of our society and strengthen social cohesion," Bavarian Finance Minister Albert Füracker (CSU) told dpa. The plans of the Federal Minister of Finance were going in the wrong direction.

"Bavaria will not participate in this," said Füracker. The Free State would even advocate for a doubling of the tax exemption to €10,000 as part of a Bundesrat initiative.