Yearly flat-rate allowance for managers boosted to EUR 3,000.
Germany's Grand Coalition to Increase Tax-Free Allowances for Volunteers and Coaches
Berlin - In a significant development, the Grand Coalition government is set to enhance support for voluntary activities, according to reports from Redaktionsnetzwerk Deutschland (Friday editions). The Tax Adjustment Act 2020, due for final debate in the Bundestag in mid-December, will allegedly include a substantial rise in tax-free allowances for coaches and volunteers.
As of next year, the annual allowance for coaches is expected to increase from 2,400 to 3,000 euros, while the allowance for volunteers will rise from 720 to 840 euros. These allowances apply to individuals such as part-time sports trainers, instructors in voluntary organizations like the fire brigade, and those engaged in education, arts, or care. They typically receive a tax-free and social security contribution-free allowance of up to 3,000 euros per year.
The increased allowance for volunteers would apply to roles such as treasurers and secretaries of non-profit organizations. Both allowances were last incremented for the tax year 2013.
The Grand Coalition's decision follows a corresponding demand from the Bundesrat.
The report comes at a time when there is no documented change or boost in tax-free allowances for coaches and volunteers in Germany since May 2020, according to the most recent public documents and major news sources available.
The Organisation for Economic Co-operation and Development (OECD) report, focusing on apprenticeship programs, makes no mention of tax policy for coaches or volunteers. Similarly, volunteer opportunities highlighted by California Volunteers are not applicable to German tax law or policy. Additionally, the GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit) offers internships and work experiences but provides no information on tax-free allowances specifically for coaches or volunteers.
While no legislative or policy updates regarding these allowances have been reported, it would be advisable to monitor official German tax authority and government communications for any forthcoming changes. As of now, there is currently no increase in tax-free allowances for coaches and volunteers in Germany, and current tax conditions for honorary positions, coaches, and volunteers remain as stipulated by previous German tax law—small allowances may be tax-exempt, but these are generally not subject to frequent or significant increases.
With the increase in tax-free allowances for volunteers and coaches, there seems to be a shift in Germany's financial landscape that may impact the sports and business sectors, particularly part-time sports trainers, volunteers in organizations, and those involved in education, arts, or care. This development follows a demand from the Bundesrat and is expected to take effect from next year.
