Bundestag Approves Sweeping Tax Package with Benefits for Volunteers, Unions, and Athletes
Berlin – The German Bundestag today passed a complete tax reform package, enacting changes impacting volunteer compensation, union dues, party donations, and Olympic bonuses. The legislation,officially the Tax Amendment Act 2025,aims to provide financial relief to a broad range of citizens and strengthen collective bargaining power.
the reforms address several key areas, offering increased tax benefits to those who contribute their time to civic and athletic organizations. Volunteer workers and trainers will see their flat-rate compensation rise from €840 to €960, or from €3,000 to €3,300. This change will directly benefit coaches in sports clubs, choir directors, and volunteer caregivers. Beginning in 2026, union membership fees will be fully tax deductible, in addition to existing employee flat rates, a move intended to bolster collective bargaining efforts.Furthermore, the maximum tax-privileged amounts for party donations will be doubled, and Olympic medal winnings will be made tax-free.
The legislation now moves to the Bundesrat for approval. Several German states are requesting financial compensation from the federal government to offset potential tax revenue shortfalls resulting from the changes, a request currently being resisted by the federal government.The outcome of this negotiation will determine the final implementation of the Tax Amendment Act 2025.