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Volunteer allowance: Reporting obligation for associations
By the end of February 2026 corporations or associations must report the volunteer allowances paid in 2025 and payments exceeding a certain amount to the tax office.
Charitable, ecclesiastical or benevolent private law corporations (e.g. charitable associations) as well as recognised churches and religious communities can pay a so‑called “volunteer allowance” to volunteers for unpaid activities. The volunteer allowance can be paid tax‑free up to a certain limit, with a distinction between a small and a large allowance.
The small volunteer allowance can be paid tax‑free up to EUR 30 per calendar day and volunteer, provided that the total amount per calendar year does not exceed EUR 1,000. The large volunteer allowance allows volunteers to receive income from certain activities up to EUR 50 per day tax‑free, but the annual amount is limited to EUR 3,000. Relevant activities are primarily those serving benevolent purposes or carried out as part of disaster relief. A role as trainer or instructor also entitles one to claim the large allowance.
Not in connection with an employment relationship
The volunteer allowance and the flat‑rate travel expense reimbursements (PRAE) for athletes, referees and sports supervisors can be received in the same calendar year from 1 January 2026. However, only one of the two options may be paid per month for the same person. The annual maximum amounts of the volunteer allowance must then be reduced accordingly.
Payments of the volunteer allowance must be made voluntarily by the association and therefore may not, for example, be linked to an employment relationship with the association. If the volunteer also earns income from self‑employment, a trade, employment or other activities for the association, e.g. because he is an employee of the association, the taxable activity must not require a comparable training or qualification to the voluntary activity (e.g. an employed paramedic may not receive the volunteer allowance for additional voluntary first‑aid services).
Reporting and record‑keeping obligations
The paying organisations must keep records of the deployment days, the activity and the amount of the payments. Records must also be kept when the paid amounts do not exceed the maximum amounts of the volunteer allowance.
If the payments exceed the maximum amounts of the respective small or large volunteer allowance, they constitute taxable income for the volunteer. The paying organisation is obliged to report payments that exceed the allowance to the tax office using form E 29 electronically. The report must be submitted by the end of February of the following year. If organisations made payments exceeding the maximum amounts in the calendar year 2025, they must therefore submit the relevant report by 28 February 2026.
Breaches of reporting obligations can have criminal‑tax consequences. Should you, as an organisation, require assistance, we are happy to support you.
The small volunteer allowance can be paid tax‑free up to EUR 30 per calendar day and volunteer, provided that the total amount per calendar year does not exceed EUR 1,000. The large volunteer allowance allows volunteers to receive income from certain activities up to EUR 50 per day tax‑free, but the annual amount is limited to EUR 3,000. Relevant activities are primarily those serving benevolent purposes or carried out as part of disaster relief. A role as trainer or instructor also entitles one to claim the large allowance.
Not in connection with an employment relationship
The volunteer allowance and the flat‑rate travel expense reimbursements (PRAE) for athletes, referees and sports supervisors can be received in the same calendar year from 1 January 2026. However, only one of the two options may be paid per month for the same person. The annual maximum amounts of the volunteer allowance must then be reduced accordingly.
Payments of the volunteer allowance must be made voluntarily by the association and therefore may not, for example, be linked to an employment relationship with the association. If the volunteer also earns income from self‑employment, a trade, employment or other activities for the association, e.g. because he is an employee of the association, the taxable activity must not require a comparable training or qualification to the voluntary activity (e.g. an employed paramedic may not receive the volunteer allowance for additional voluntary first‑aid services).
Reporting and record‑keeping obligations
The paying organisations must keep records of the deployment days, the activity and the amount of the payments. Records must also be kept when the paid amounts do not exceed the maximum amounts of the volunteer allowance.
If the payments exceed the maximum amounts of the respective small or large volunteer allowance, they constitute taxable income for the volunteer. The paying organisation is obliged to report payments that exceed the allowance to the tax office using form E 29 electronically. The report must be submitted by the end of February of the following year. If organisations made payments exceeding the maximum amounts in the calendar year 2025, they must therefore submit the relevant report by 28 February 2026.
Breaches of reporting obligations can have criminal‑tax consequences. Should you, as an organisation, require assistance, we are happy to support you.