Taxes in the public sector

The public sector with its regional and self-governing bodies (e.g. special-purpose associations, health insurance funds, universities) and private-law forms of enterprise (e.g. corporations in the energy supply sector) performs public tasks. With its institutions, it serves the common good and, in particular, public services of general interest for the population.

The public sector, including the churches, is increasingly confronted with complex tax law. At a European level, the idea of competition dominates, which puts a great deal of pressure on the justification of tax privileges for public sector activities. At national level, on the other hand, the special public welfare purposes of these activities play a special role and justify tax exemptions. This is not an easy situation in terms of tax compliance requirements.

Increasingly confronted with complex tax law

At national level, on the other hand, the special public welfare purposes of these activities play a special role and justify tax exemptions. This is not an easy situation in terms of tax compliance requirements.

In addition, taxation of the public sector cannot be viewed in isolation from trends in the public sector and other areas of law. Tax advice in the public sector must therefore provide answers to issues such as digitalisation: from digital taxation procedures and the digital organisation of authorities to broadband expansion and its subsidy issues. It must be aware of the cross-connections with public procurement and state aid law, for example in the case of a purchasing directive, tax instructions or tax concessions utilised.

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Further development of the tax cross-link, determination of similar activities, assessment of new activities in the light of digitalisation.
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