What goodwill regulations apply to donations for refugees?
Refugees in Germany continue to seek protection from war and displacement. Thousands of dedicated citizens, companies, initiatives, and organisations continue to help the arriving refugees with personal and financial commitment to ensure their care and support.
To promote and support this societal commitment in helping refugees, the Federal Ministry of Finance introduced simplified tax regulations. They apply from 1 August 2015 to 31 December 2016 (BMF letter dated 22 September 2015).
The federal and state governments have now agreed to extend the tax relief for refugee aid beyond 2016 until 31 December 2021 (BMF letter dated 5 February 2019). Thus, as in 2016, the following regulations apply in 2018 and 2019 onwards:
- For donations to special accounts of aid organisations to support refugees, the simplified proof of donation applies - without any limit on the amount. Proof can be provided, for example, by a cash deposit slip, a bank statement, or a printout from online banking.
- Exceptionally, donations to private fundraisers for the benefit of refugees are also eligible. Often, dedicated citizens set up donation accounts on special occasions, e.g. birthdays, weddings, christenings, funerals, anniversaries, and ask for donations instead of gifts.
- All charitable associations may collect donations for refugees, regardless of their actual statutory purposes. The special campaign must be indicated.
- All charitable associations may use their free financial resources to support refugees, even if refugee aid is not regulated in the statutes. The statutorily required amendment of the statutes is not necessary. However, it must be ensured that these funds are not earmarked by the donor for another purpose.
- If employees waive parts of their wages or parts of an accumulated credit balance and the employer makes a payment to the donation account of a recognised aid organisation, this wage portion remains tax-free.
Currently, the BMF has issued special regulations for supporters of Ukrainian refugees. This means that the tax authorities want to help supporters with various tax relief measures. Details are regulated in the BMF letter dated 17 March 2022 (IV C 4-S 2223/19/10003).
