Term and meaning of exemption in law
Die Exemption is a multifaceted concept in law that describes various legal scenarios. Essentially, it refers to a legal or factual relief of a person or legal entity from an existing duty, obligation, or restriction. Exemptions can apply to statutory, contractual, or official obligations. This article provides a comprehensive overview of the different legal aspects, forms, and areas of application of exemption.
General legal principles of exemption
Conceptual distinction
In legal science, exemption is understood as the termination, revocation, or suspension of a legal obligation or restriction. It regularly constitutes a unilateral act of authority, an agreement, a statutory exception, or an official permit.
Types of exemption
Statutory exemption: The law already provides for certain exceptions in which an obligation does not exist or ceases to apply. Contractual exemption: Within the framework of private autonomy, parties can fully or partially lift obligations by agreement.
* Official/administrative exemption: A competent authority or court grants an exemption as provided by law.
Exemption in civil law
Exemption under the law of obligations
Under the law of obligations, exemption generally refers to the release of a debtor from an obligation, often within the context of a release agreement (§ 397 BGB). Such an agreement removes the obligation for the released party to fulfill the debt.
Example case: Release agreement
A creditor can explicitly declare to the debtor that the debt is released. Legally, this exemption is referred to as a release agreement. The consequence is that the legal relationship is terminated to that extent.
Exemption under corporate law
Another area is the exemption from corporate duties, such as the exemption of a managing director from the restrictions of § 181 BGB (self-dealing prohibition).
Exemption in public law
Administrative law exemption
In administrative law, exemption plays a central role in breaking statutory prohibitions or mandates. A typical scenario can be found in construction law.
Exemption under planning law
According to § 31 para. 2 BauGB, an exemption from the provisions of a development plan may be granted if the fundamental principles of planning are not affected. The decision in this regard is at the building authority’s discretion.
Exemption from public law obligations
Examples include exemption from the public broadcasting license fee (§ 4 RBStV) or exemption from compulsory statutory health insurance (§ 8 SGB V).
Exemption in tax law
Tax exemptions
Tax law contains numerous tax exemption provisions, for example, value-added tax exemptions under § 4 UStG or tax allowances under income tax law. These are statutory exceptions in which, under certain conditions, a tax obligation is eliminated or reduced.
Exemption in employment law
Release and exemption from work obligations
In employment law, exemption from the obligation to work can occur through contractual or statutory provision, for example during parental leave, maternity protection, or release for works council activities according to § 38 BetrVG.
Exemption in social law
Exemption from insurance obligations
In social law, exemptions are generally available by application, such as exemption from pension insurance or statutory health insurance obligations. The conditions are regulated specifically by the respective laws.
Exemption in procedural law
Exemption from payment of costs
Exemptions can also play a role in court proceedings. The best-known form is the granting of legal aid, which exempts a person from statutory fees and expenses (§§ 114 ff. ZPO).
Exemption in European and international law
Numerous provisions for exemptions also exist at the supranational level. For instance, under EU law, exemptions from mask or vaccination requirements may be provided for social, religious, or health reasons.
Procedure and requirements
Application and evidence
In many areas of law, an exemption is tied to a formal application. In most cases, a valid reason or fulfillment of specific requirements must be demonstrated. The decision is made either automatically (in the case of statutory exemptions) or after a discretionary review by the competent authority (for official exemptions).
Supplementary provisions and revocation
Exemptions can be made subject to supplementary provisions (requirements, conditions) and, under certain circumstances, revoked if the relevant circumstances change or if there is an unlawful use.
Legal consequences of exemption
The most important consequence of an exemption is the elimination of the underlying obligation. The exempted person or institution can no longer be required to fulfill the original duty. In the event of a revocation of the exemption, the obligation is generally reinstated from that point onward.
Conclusion
Legal exemption is an important instrument for the differentiated application of legal provisions and ensures that, in particular situations, individual or substantive justice can be achieved. Its specific form, as well as the associated requirements and legal consequences, vary depending on the field of law, but are always of considerable practical relevance for all legal practitioners.
References and literature:
- BGB, German Civil Code
- BauGB, Federal Building Code
- SGB, Social Code
- Value Added Tax Act (UStG)
- Code of Civil Procedure (ZPO)
- Commentary literature on the respective legal fields
Frequently asked questions
Who can apply for an exemption?
In principle, any person or institution affected by a legal obligation for which an exemption is provided for may file an application for exemption. In a legal context, this always depends on the respective statutory regulations. For example, with regard to the broadcasting license fee, households with low income or in cases of undue hardship may apply for an exemption. In other scenarios—such as in social law or with professional chambers—exceptions to mandatory membership or contribution collection may also be provided by law. An individual application is usually subject to a specific form and must include supporting documents as evidence. Eligibility to apply can always be determined from the relevant legal provision (e.g., § 4 RBStV for broadcasting contributions, § 6 para. 3 HandwO for Chamber of Crafts exemptions, or § 7 para. 2 BAföG for educational grants). Note that eligibility to apply is often tied to the applicant’s personal or economic situation and must be carefully assessed on a case-by-case basis.
What documentation must be attached to an exemption application?
The necessary documents to support an application for exemption vary depending on the nature of the legal obligation and the specific exemption grounds. Generally, the applicant must provide evidence demonstrating their qualifying situation—such as notices of social benefits (e.g., unemployment benefit II notice for applications for exemption from the broadcasting fee), medical certificates or disability passes (for health-related exemptions), or proof of undue hardship. For tax or chamber-related exemptions, financial documentation such as income tax assessments or detailed revenue statements is often required. It is advisable to carefully review the requirements of the relevant authority, as incomplete applications are frequently rejected or result in delays.
Are there statutory deadlines for applying for exemption?
Yes, most exemption provisions establish certain deadlines for submitting both the application and the supporting evidence. These deadlines, however, vary greatly depending on the legal basis. For example, to be exempt from the broadcasting fee, the application must be submitted within the current month to obtain exemption from the beginning of that month (§ 4 para. 4 RBStV). Fixed deadlines also apply in tax law (e.g., for applications for reduced taxation or exemption under § 50d EStG); retroactive exemptions are usually excluded. If the applicant misses the deadline, the entitlement may be wholly or partly forfeited. In employment and social security law, separate—sometimes very short—application deadlines apply and must always be checked on a case-by-case basis.
How is an application for exemption reviewed and decided?
After receiving the application and all necessary supporting documents, the competent authority, chamber, or organization examines whether the statutory requirements for the requested exemption are met. This takes place in an administrative procedure that observes the principle of the right to be heard. The authority is bound by the statutory grounds for exemption and has no discretion if the prerequisites are fulfilled (mandatory decision). If an application is incomplete or unclear, the applicant will be asked to provide corrections or additional statements. After the review is completed, a written notice is issued, setting out the reasons for the decision. In the event of a rejection, the notice also includes instructions on legal remedies, explaining the options for objection or appeal to the administrative court.
Can an exemption be limited to specific periods of time?
Yes, in many cases the law explicitly provides that an exemption is granted only for a specific period. For example, exemption from the broadcasting fee is generally granted for a maximum of three years as long as the reason for exemption persists, with the option for extension upon renewed proof. In tax or levy law, a temporary exemption can be granted, for instance, for a fiscal year or for the duration of a particular life situation. Where the conditions for exemption exist permanently, it may also be granted indefinitely; however, the eligibility requirements are usually reviewed periodically to prevent abuse.
Are there legal remedies against the rejection of an exemption application?
If the application for exemption is rejected, the applicant generally has access to the usual legal remedies—as with any administrative act. This includes first lodging an objection with the deciding authority. If this is also rejected, the applicant can bring a lawsuit before the administrative court. The instructions on legal remedies in the rejection notice provide details of the permissible steps and applicable deadlines (for example, lodging an objection within one month). The prospects of success for a legal remedy significantly depend on whether further evidence or legal arguments can demonstrate that the exemption criteria are indeed met.
What are the consequences of losing the grounds for exemption?
If the grounds for exemption end—for example, due to the loss of need or changes in personal circumstances—the person concerned is obliged to notify the competent authority immediately. If this obligation is breached, contributions, fees, or other duties may be reclaimed retroactively; a fine or the initiation of administrative offense proceedings may also ensue. The exempted person is responsible for continually fulfilling the exemption requirements and proactively reporting any changes. Continued unlawful use of the exemption may also result in criminal consequences (e.g., the offense of fraud).
