The draft law, working title “Income Tax Reform Act 2027,” provides that clubs will only be able to keep a tax-free limit of 1,000 euros in the future. Higher income from economic activity is to be fully taxed. The new regulation does not affect charitable club work, but rather organizations that also pursue economic interests.
The financial policy spokesman for the CDU/CSU parliamentary group, Fritz Güntzler, sharply criticized the plans in an interview with WELT AM SONNTAG: “I wonder whether we really want to take on the expected trouble with the clubs for annual additional revenue of 45 million euros. That would be a fatal signal, especially since this government actually set out to strengthen volunteer work.”
Güntzler also criticized that essential content of the draft bill is not covered by the coalition committee. This includes the abolition of the tax-free allowance for staff discounts, for profits from the sale of shares, and the elimination of the special expense deduction for other pension provisions. The Finance Ministry expects additional revenue of more than 260 million euros per year for the federal government alone, and around 600 million euros including states and municipalities.
Already known changes include the reduction of the craftsmen bonus, the increase in the flat tax on mini-jobs from two to five percent, and a new top tax rate of 47 percent. To relieve the burden, the employee lump sum, the basic tax-free allowance, and the child allowance are to be increased.
Source: www.welt.de
