German lawmakers pass $54-bn corporate tax relief package in Bundestag
The package, part of the new government's plans to put Germany back on growth track after two years of decline, offers corporate tax breaks worth almost €46 billion ($54 billion) from 2025 to 2029.
To support companies and boost investment, German lawmakers today passed a fiscal relief measure package in the Bundestag, the constitutional body directly elected by the people. The package offers corporate tax breaks worth almost $54 billion from 2025 to 2029. It promises a 1-pp cut to the corporate tax rate each year over five years from 2028, bringing it down to 10 per cent by 2032.
It promises a one-percentage-point cut to the corporate tax rate each year over five years from 2028, bringing it down to 10 per cent by 2032, global newswires reported.
From 2032 onward, the total tax burden for companies will be just under 25 per cent instead of the current 30 per cent.
The measures will reduce companies' tax bills with favourable depreciation options for investments of up to 30 per cent and for electric car purchases of as much as 75 per cent.
To promote investment in research, the assessment basis for the research allowance will be significantly increased and the eligible expenditure will be expanded in a non-bureaucratic manner, according to the country's finance ministry.
The government has pledged to cover a large part of the resulting losses in tax revenue.
The package needs to be passed by the Bundesrat, a legislative body that represents the 16 states of Germany, and this is expected on July 11.
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