Germany plans tax advisory reform to expand services and cut bureaucracy under a new act announced on 24 April 2026.
The German Federal Government has announced plans to modernise tax advice and reduce bureaucracy through the Ninth Act Amending the Tax Advisory Act, aimed at expanding advisory services for citizens while simplifying regulatory requirements.
The reform was outlined on Friday, 24 April 2026.
The draft law includes four key changes:
First, the powers of wage tax assistance associations are to be expanded. These associations will in future be able to offer advice in more cases, with rules comprehensively modernised. Monetary limits for services agreed with wage tax assistance associations will be removed. In addition, one person will be allowed to manage three advisory offices instead of the current two. According to estimates by the Federal Ministry of Finance, this is expected to enable around 35,500 additional taxpayers to use support from a wage tax assistance association.
Second, the scope of limited tax assistance is to be redefined. Energy consultants will in future be permitted to address tax law issues, provided these are related to their advisory services.
Third, the scope for free assistance in tax matters will be expanded. In addition to close relatives, other related persons will also be allowed to provide free advice. So-called “Tax Law Clinics” at or near universities will be permitted to offer free tax advice under the supervision of specially qualified individuals.
These clinics will allow students to gain practical experience by providing free tax law advice to other students under supervision, supporting practice-oriented training and encouraging voluntary engagement.
Fourth, the management requirement for additional tax adviser offices will be removed. In future, an additional office may be maintained without being managed by another adviser or requiring an exemption. Powers of attorney may also be managed centrally and electronically.
In addition, the cabinet has approved amendments to other tax provisions. A change to trade tax is intended to ensure greater tax fairness. This will be achieved by increasing the minimum trade tax rate to 280%, as agreed in the coalition agreement.
