Cabinet: tax cuts for companies
New government supports economy with billions in tax relief.
Berlin (dpa) – The German government is launching a package of tax relief laws worth billions to support the German economy. Among other things, the draft laws will allow companies to set as much as 30 percent of their investments in moveable assets such as machines off against tax this year and in the next two years. Improved depreciation options for electric cars used by companies are also planned.
Corporate tax is also set to be lowered from 2028. As a result, the overall tax burden on companies is to decrease from nearly 30 percent at present to nearly 25 percent in 2032. In addition, the governing coalition plans to expand tax concessions for research activities and to reduce the tax rate for profits that are not distributed. Easing the burden on companies is a central goal of the new German government.