Overview of the volunteer allowance: From January 1, 2024, people who provide voluntary services can benefit from a tax-free basic amount. This allowance, known as the volunteer allowance, applies to activities that are typically carried out within the framework of associations.
Administrative obligations: Although this regulation is advantageous for recipients of the payments, it results in an additional administrative burden for the paying associations and organizations. They are now obliged to keep detailed records of the number of days worked and the amounts paid out. In addition, there is a new reporting obligation to the tax authorities for payments exceeding EUR 2,000 per person in the previous year, with a deadline of the end of February of the following year.
These measures are intended to ensure that higher expense allowances are transparent and comprehensible. Exceeding the tax exemption limits leads to an obligation to submit a tax return in order to ensure fair taxation.
