Taxation of non-profit associations in the area of income taxes (corporate income tax, trade tax)
Tax exemption of associations in the area of income taxes:
The Corporation Tax Act and the Trade Tax Act contain tax exemption provisions for associations which, according to their articles of association and actual management, serve exclusively and directly charitable, benevolent or ecclesiastical purposes.
Associations are generally subject to corporate income tax and trade tax as income taxes. The Corporation Tax Act and the Trade Tax Act contain tax exemption regulations for associations.
Limits of the tax exemption:
The tax exemption does not apply to economic business operations that are not special-purpose operations, unless the total income from them, including turnover tax, does not exceed 45,000 euros per year.