Tax & Legal

In a recent announcement, the Federal Ministry of Finance (MoF) has amended the Application Decree for the Tax Code -which was last amended by the MoF letter dated March 17, 2026 - effective immediately. The focus is on adjustments in the area of non-profit status.

The Federal Government has presented a draft of the 2025 Tax Amendment Act.

In a tax court ruling, the Lower Saxony Tax Court considered the requirements applicable to a foundation established under foreign law.

The Supreme Tax Court has held that a donation to a charity registered in another EU/EEA member state is only deductible if its statutes and actual management conform to all the German requirements.

The finance ministry has called on tax offices to follow the ECJ Persche case on donations to EU charities, provided the taxpayer shows that the charity would have qualified as such in Germany.