Corporations such as GmbH and UG are legal entities under private law. As such, they do not have an independent capacity to act, but can also provide donations in cash and in kind through their shareholders-managing directors. For donations in the GmbH, § 9 KStG applies primarily. It is predominantly comparable to § 10b EStG, which regulates the deduction of donations from natural persons.
Deposit donations in the GmbH: the legal bases
Donations are basically “private pleasures” of the shareholder. The promotion of the local football club or a non-profit institution has no direct connection with the original business operations of partnerships and corporations. Exceptions are conceivable, but in practice they are rather rare and therefore negligible.
If a shareholder would now finance his "private pleasure" with funds from his GmbH, this would sometimes be a hidden profit distribution (vGA). It would lead to considerable tax disadvantages, which would make the donation overall unattractive.
Since the legislator also wants to promote donations comprehensively in the GmbH, he allows part of the money paid for deduction. Taxpayers, in this case corporations, can therefore reduce their taxable income by providing certain services to certain institutions. “Certainly” is the right keyword here, because the circle of eligible donation recipients is limited by the Corporate Tax Act (KStG).
Specifically, § 9 KStG applies the following principles:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.