Tax-privileged purposes

Tax- privileged purposes within the meaning of Section 51 AO are non-profit , charitable or church purposes . Tax-privileged are also on other legal basis u. a. Political parties , professional associations and municipal electoral associations . The benefits for tax-privileged corporations are diverse. It belong to essentially exemptions in the corporate and trade tax as well as reductions in VAT , as well as the consideration of donations ( donations ) to these entities in the income tax or corporation tax of the donor.

Charitable purposes

Non-profit purposes of a corporation are defined in Germany by § 52 Tax Code (AO).

"A corporation pursues charitable purposes if its activity is aimed at unselfishly promoting the general public in a material, spiritual or moral field ."

The general definition in Section 52 Paragraph 1 AO is followed by a list of activities in Paragraph 2 Clause 1 Nos. According to Section 52 (2) sentence 2 AO, the tax authorities can declare further purposes to be of non-profit making.

Charitable causes

Charitable purpose of a corporation are defined in Germany from § 53 Tax Code (AO).

"A corporation pursues charitable purposes if its activity is aimed at selflessly supporting people who, due to their physical, mental or emotional state, are dependent on the help of others or whose remuneration is not higher than four times the standard rate of social assistance within the meaning of the Section 28 of Book Twelve of the Social Code. "

Church purposes

Church purposes of a corporation are defined in Germany from Section 54 of the Tax Code (AO) (see also the clerical cooperative ).

"A corporation pursues ecclesiastical purposes if its activity is aimed at selflessly promoting a religious community that is a public corporation."

Extremist bodies

Set tax breaks according to Section 51 (3) AO also presupposes that the corporation does not promote efforts within the meaning of Section 4 of the Federal Constitutional Protection Act or contravene the idea of international understanding in the assessment period to be assessed in accordance with its statutes and in its actual management . In the case of corporations that are listed as extremist organizations in the Federal Constitutional Protection Report or of a state , it is rebuttedly presumed that they are not pursuing any tax-privileged purposes.

If the tax office has previously treated the corporation as tax-privileged and a report for the protection of the constitution is later published in which the corporation is listed as extremist, a change in the tax assessment according to Section 173 (1) No. 1 AO due to new facts or evidence may be considered.

literature

Rolf Wallenhorst, Raymond Halaczinsky: The taxation of non-profit associations, foundations and legal entities under public law. Handbook for advice and practice. Verlag Franz Vahlen, 6th edition 2009. ISBN 978-3-8006-3560-3

Johannes Buchna, Carina Leichinger, Andreas Seeger, Wilhelm Brox: Charitable status in tax law. The tax breaks for associations, foundations and other corporations - tax treatment of donations. Erich Fleischer Verlag, 11th edition 2015. ISBN 978-3-8168-4041-1

Ursula Augsten: Tax-privileged purposes. In: Tax Law in Nonprofit Organizations. Springer Gabler , Wiesbaden 2015, pp. 61–79

Web links

Text of the tax code
Extension of the catalog of charitable purposes in Section 52, Paragraph 2 of the Tax Code (AO). Effects on other laws Scientific services of the German Bundestag , draft WD 4 - 3000 - 070/15 of May 21, 2015
On § 10b EStG: R 10b.1 Expenditures for the promotion of tax-privileged purposes i. S. d. Section 10b (1) and (1a) EStG Income Tax Directive EStR R 10b.1 (on Section 10b EStG). nwb database , accessed on November 18, 2017

Individual evidence

↑ Klaus Wachter: Excerpt from the application decree for the tax code (AEAO) as of January 26, 2016. BMF letter of January 26, 2016, GZ IV A 3 - S 0062/15/10006, DOK 2015/1166398 (on §§ 51 ff . AO)
↑ BMF : § 10b Tax-privileged purposes Official income tax manual 2016, p. 2223.
↑ BFH, judgment of April 11, 2012 - IR 11/11 BStBl 2013 II p. 146 para. 18th
↑ Application decree for the tax code (AEAO); New announcement of the AEAO BMF of January 31, 2014 - IV A 3 - S 0062/14/10002 BStBl 2014 I p. 290; AEAO on § 51 - General / on § 51 Paragraph 3 AO
↑ Jérôme Hördemann: Suspicion of extremism: Women's association Courage should postpay taxes Westdeutsche Zeitung , January 7, 2013

[1] Klaus Wachter: Excerpt from the application decree for the tax code (AEAO) as of January 26, 2016. BMF letter of January 26, 2016, GZ IV A 3 - S 0062/15/10006, DOK 2015/1166398 (on §§ 51 ff . AO)

[2] BMF : § 10b Tax-privileged purposes Official income tax manual 2016, p. 2223.

[3] BFH, judgment of April 11, 2012 - IR 11/11 BStBl 2013 II p. 146 para. 18th

[4] Application decree for the tax code (AEAO); New announcement of the AEAO BMF of January 31, 2014 - IV A 3 - S 0062/14/10002 BStBl 2014 I p. 290; AEAO on § 51 - General / on § 51 Paragraph 3 AO

[5] Jérôme Hördemann: Suspicion of extremism: Women's association Courage should postpay taxes Westdeutsche Zeitung , January 7, 2013