With the approval of the German Bundesrat, the German Bundestag has passed several laws initiated by the new federal government to create tax incentives for companies and start-ups.
This so-called “Investitionsbooster” provides for the introduction of a three-year, degressive special depreciation allowance of 30% per annum for the years 2025 to 2027 for movable assets newly acquired on or after July 1, 2025. This is intended to enable companies to claim tax deductions for investments in capital goods more quickly, thereby not only improving their liquidity but also increasing their competitiveness.
In the case of electric vehicles used for business purposes, as much as 75% of the acquisition costs can be claimed for tax purposes in the year of purchase. The option of using this special depreciation allowance is also limited to an initial period of three years. In addition, the subsidy limit for electric vehicles will be increased to a gross list price of €100,000.
In addition, corporate income tax is to be reduced from the current 15% in five annual steps of one percentage point each, starting in 2028, to 10% in 2032.
In addition, it will be examined whether, from 2027, commercial income of newly established companies can generally be subject to corporation tax regardless of their legal form. A new legal form of “company with tied assets” is also to be introduced to promote companies with a social or sustainable focus.
