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The Law of Lohnsteuerhilfevereine – Legislation, Practice & Income Tax 2025

Based on, among others, StBerG (§ 4 Nr. 11, §§ 13–15, § 27), AO, EStG. Information provided without guarantee; please check official sources.

Introduction & Objectives

This manual consolidates the law, practice, and supervision of Lohnsteuerhilfevereine (LSHV - Income Tax Assistance Associations) in Germany. The focus is on the authority to provide tax advice according to § 4 Nr. 11 StBerG (Tax Consultancy Act), organisational duties, data protection/GwG (Money Laundering Act), and a compact overview of income tax 2025. A geographical overview helps to quickly find the responsible state supervisory authority.

Objectives

• Understand the law: What are LSHV allowed to do – and what are they not?
• Apply practice: Admission, power of attorney, deadlines, assessment review
• Germany-wide orientation: Supervision & links for all 16 federal states

Chapter 1 – Legal Foundations

1.1 Purpose & Systematics of the StBerG

The StBerG (Tax Consultancy Act) protects legal transactions in tax matters. It limits professional assistance to specifically authorised persons/organisations. LSHV are permitted for this purpose under special legislation – strictly limited to the income tax of their members.

• § 4 Nr. 11 StBerG: Substantive scope of authority
• §§ 13–15 StBerG: Recognition, business operations, order
• § 27 StBerG: Supervision by the states (Länder)
• AO/EStG: Procedural and substantive tax law (Abgabenordnung / Einkommensteuergesetz)

1.2 Powers – Permitted & Not Permitted

Permitted (Extract)

• Income tax returns (ESt-Erklärungen), review of tax assessments, appeals in income tax proceedings
• Income-related expenses (Werbungskosten: travel costs, work equipment, further education, DHHF), special expenses (Sonderausgaben), extraordinary burdens (außergewöhnliche Belastungen)
• Simple investment & rental cases (observe state-specific practices)

Not Permitted

• Profit-based income (Gewerbe/trade, self-employed work, agriculture/forestry)
• VAT advance returns (USt-Voranmeldungen), trade tax returns (GewSt-Erklärungen), complex international tax planning

1.3 Representation & Procedure (AO)

• Representation with power of attorney (Vollmacht) via ELSTER/post – organise deadline monitoring
• Simple amendment (§ 172 AO), appeal (Einspruch), extension of deadlines
• Documentation: Comparison of declaration ↔ assessment

Chapter 2 – Requirements & Membership

2.1 Admission & Documents

• Membership application (including tax ID), SEPA mandate, GDPR information (Art. 13)
• Power of attorney for Finanzamt/ELSTER, identification records
• Determine fee level, create file, deadline calendar

2.2 Eligible Group of Persons

• Employees, retirees, pensioners
• Borderline cases (e.g., rentals/depots): only if simply structured; otherwise referral

Chapter 3 – Organisation & Duties

3.1 Organs & Governance

• General assembly, board – responsibilities according to the articles of association
• Compliance: Conflicts of interest, gifts, secondary activities
• Quality: Four-eyes principle, checklists, training

3.2 Advice Centres & Management

• Opening/relocation/change of manager must be notified in advance
• Proof of suitability, documentation of further training, representation rules
• Premises/IT: Accessibility, confidentiality, secure communication

3.3 Business Audit (Annual)

• Report including member numbers, contributions, organisation, findings
• Deadline plan and follow-up on the rectification of deficiencies

Chapter 3a – Duties according to § 22 StBerG

Overview of Duties

• Annual business audit with a report to the supervisory authority
• Advice centres & management – notify and report changes
• Records retention: organised member/advisory documents (usually 10 years)

Chapter 4 – Public Image & Authority

4.1 Do

• "Income tax assistance for employees, retirees and pensioners – for members only."
• "Advice within the scope of § 4 Nr. 11 StBerG."
• Transparent contributions according to the fee schedule

4.2 Don't

• "We provide advice on all types of taxes/corporate matters."
• Promises of success ("Refund guaranteed")
• Misleading claims of uniqueness

Chapter 5 – Contributions & Financing (lexo.tax)

5.1 Fee Schedule – Core Points

• Basic fee: 59.00 €
• Incremental fee: 2.75 € per full 1,000 € of the assessment base
• Maximum fee: 429.00 €
• Admission fee: 15.00 €

Assessment base: Taxable income including pensions, flat-rate taxed mini-job wages, wage replacement benefits, and foreign income; for joint assessment: both persons. The annual fee is rounded down to full euros.

Original: Fee Schedule (PDF)

5.2 Calculation Examples

Examples excluding admission fee. The actual fee is based exclusively on the linked fee schedule.

5.3 Maturity & Payment

• Year of joining: due immediately
• Subsequent years: 1 January; services are suspended if contributions are in arrears
• SEPA pre-notification shortened (1 day)

Chapter 6 – Data Protection & Anti-Money Laundering

6.1 GDPR – Duties

• Records of processing activities (VVT), data processing agreements (AV-Verträge), technical and organisational measures (TOM), deletion concept, training
• Transparency (Art. 13/14), data subject rights, secure communication

6.2 Sample Notice (Short)

"We process personal data of our members to carry out the association's tasks and to fulfill our statutory purposes. Recipients include the tax administration (ELSTER) as well as IT data processors. Data subject rights under the GDPR are observed."

6.3 GwG (Overview)

• Risk analysis, internal security measures, training
• Reporting channels for suspicion and regular evaluation

Chapter 6a – Income Tax 2025 (Compact)

6a.1 Income-Related Expenses (Core Areas)

• Travel costs (distance allowance/Entfernungspauschale), public transport tickets
• Work equipment (PC, telephone/internet pro rata, specialist literature)
• Further education/exams, travel expenses
• Double household maintenance (DHHF), relocation (professionally motivated)
• Home office allowance or home office room (if it is the centre of activities)

6a.2 Special Expenses & Extraordinary Burdens

• Pension provisions (basic pension/RV, health/care insurance KV/PV), church tax, donations
• Medical/nursing costs (respecting the reasonable self-burden), disability (lump-sum allowances)

6a.3 Tax Reductions (§ 35a EStG)

• Household-related services, craftsman services (paid non-cash)
• Care/support services within the household

Chapter 7 – Supervision & Federal States (Geo Overview)

According to § 27 StBerG, LSHV are subject to the supervision of the state tax authorities. Usually, the authority at the association's registered office is responsible.

Telephone numbers and email addresses change frequently – please check the linked official pages.

Chapter 8 – Practical Cases (Compact)

8.1 Photovoltaics: Balcony/Small vs. Feed-in

Self-consumption without profit intention: Ancillary income tax questions permitted. Feed-in remuneration/profit income: Outside the LSHV authority → referral to a tax consultant.

8.2 Old-age Income: Pensions (Rente & Pension)

Taxable portion according to the start of the pension; civil service pensions (Pensionen) as income from non-self-employed work; record pension provisions fully; check foreign pensions (DTA/DBA).

8.3 Double Household Maintenance

Primary/secondary residence, home travel, flat-rate meal allowances (limited time); collect receipts and document criteria.

8.4 Home Office & Home Study

Home study (Arbeitszimmer) only if it is the centre of activity; otherwise, home office allowance. Documentation: floor plan/photos, description of activities.

FAQ

Who can use the services of an LSHV?

Members with income tax matters without profit-based income (employees, retirees, pensioners).

When must a referral to a tax consultant be made?

In the case of profit-based income, corporate taxes, complex international cases, or if the authority according to § 4 Nr. 11 StBerG would be exceeded.

Which documents are important?

Wage tax certificate (Lohnsteuerbescheinigung), pension/donation receipts, income-related expenses/§ 35a invoices, and where applicable, nursing/illness documentation.

How high is my contribution?

According to the fee schedule: basic fee + incremental fee (2.75 €/1,000 €) up to the maximum fee; see Chapter 5 and the linked PDF.

Glossary

Authority to provide advice (Beratungsbefugnis) – Legally defined framework for LSHV, primarily § 4 Nr. 11 StBerG.

Business audit (Geschäftsprüfung) – Annual report on the activities and organisation of the association for submission to the supervisory authority.

TOM – Technical and organisational measures for data protection.

Contact

Join as a member: /en/join · Email: kontakt@lexo.tax

Note: For binding details, the laws (StBerG, AO, EStG) and information from the linked state authorities apply.