The tax advantages of founding a non-profit UG are considerable. Once the tax office has confirmed the non-profit UG’s non-profit status, it receives a notice of exemption confirming tax exemption for the specified assessment period. This means that the non-profit UG is exempt from corporate income tax, trade tax, solidarity surcharge and also property tax. In addition, many services in the non-profit sector are exempt from sales tax and taxed at a reduced rate of seven percent. In contrast, sales in commercial business operations must be taxed at a regular rate of 19 percent.