“Grants to individuals affected by the Corona crisis.”
To mitigate economic burdens due to the Corona crisis, the fiscal administration has adopted further measures:
Simplified proof of grant:
In the case of monetary donations to special accounts set up for Corona-Hilfe by domestic legal entities under public law, domestic public service agencies or by an officially recognized domestic association of independent charitable organizations including its member organizations, a deposit or transfer slip (e.g. account statement, PC printout in the case of online banking) will suffice as proof, regardless of the amount of the donation. A formal donation receipt is waived in this respect.
Fundraising activities of tax-exempt corporations:
Non-profit entities such as associations or foundations may use their funds only for the purposes provided for in their articles of association. However, the tax authorities allow relevant entities to use donations received as part of special campaigns directly to support people affected by the Corona crisis without jeopardizing their non-profit status. However, the neediness of the persons or institutions supported must be verified and documented.
Exceptionally, funds that do not come from special fundraising efforts may be used for those affected by the Corona crisis. This applies in particular to purchasing or comparable services or the reimbursement of costs incurred in the process, as well as the forwarding of funds to other tax-privileged corporations or legal entities under public law or domestic public service departments that use them to support those affected by the Corona crisis.
Grants from business assets:
Services rendered in connection with the Corona crisis under the aspect of sponsorship or in support of business partners may be deducted as business expenses. The donation of assets or payments from business assets (but not cash payments) to companies and institutions affected by the Corona crisis (e.g. hospitals) can also be taken into account as business expenses – even without a business reason – or do not lead to withdrawals.
In the case of the recipient , benefits received are generally to be recognized as operating income.
If employees waive payment of parts of their wages, these remain tax-free if the employer makes corresponding tax-deductible donations in connection with the Corona crisis and documents this. The employer shall also record in the payroll account the wages that are left out of account or take a corresponding waiver from the employee to the payroll account. Consideration of the corresponding parts of the salary as a donation in the case of the employee is out of the question.