Bundestagโข Approves Sweeping Tax Package with โBenefits for Volunteers, Unions, andโฃ Athletes
Berlin – The German Bundestag today passed a completeโค tax reform package, enacting changes impacting volunteer compensation, union dues, party โdonations, andโค Olympic bonuses.โข The legislation,officially the Tax Amendment Act 2025,aims to provide financialโ relief to a broad range of citizens and strengthen collective bargaining power.
the reforms โขaddress several key areas, offering increased tax benefits to thoseโ who contribute their time to civic andโ athletic organizations. Volunteer workers and trainers willโ see their flat-rate compensation rise from โฌ840 to โฌ960, or from โฌ3,000โ to โฌ3,300. Thisโข changeโค will directly benefit coaches in sports clubs, choir โdirectors, andโค volunteer caregivers. Beginning in 2026, union membership fees will beโ fully tax deductible, in addition to existing employee flat rates, a move intendedโ to bolster collective bargaining efforts.Furthermore,โ theโ maximum tax-privileged amountsโ for party donations will be doubled,โฃ and Olympic medal winnings will โbe โขmade tax-free.
The legislation now moves to โขthe Bundesrat for approval. Several German states are requesting โfinancial compensation fromโ the federal โgovernment to offset potential tax revenueโ shortfalls resulting from the changes, a request currently being resisted by the federal government.The outcome of this negotiation will determine the final implementationโข of the Tax Amendment Act 2025.
