Federal government plans - Employers against tax incentives for foreign experts
Employers' Association President Rainer Dulger rejects the tax incentives planned by the Federal Government for highly skilled foreign workers. Dulger told the German Press Agency: "This proposal goes against tax fairness and sends a false internal political signal. It could also lead to unrest in industrial peace in many places. It applies to all employees: more net from gross for everyone. Then it will also be attractive again for highly skilled foreign workers."
Government to attract Highly Skilled Workers
As part of their "Growth Initiative," the Federal Government plans to introduce tax incentives for employment in Germany - to make Germany more attractive for highly skilled foreign workers. Proposed measures include allowing newly arrived highly skilled workers to be tax-exempt from 30, 20, and 10 percent of their gross salary in the first three years. A lower and upper limit for the gross salary for this exemption is planned.
Federal Finance Minister Christian Lindner (FDP) stated that these tax incentives should apply to "highly skilled workers" from abroad who could receive a tax recruitment premium. Lindner also stated that the Federal Government had noticed that the proposal had been met with reluctance from employers. "That's why we'll start talking first. We won't introduce anything that employers won't actively use." The craft sector had already expressed criticism towards the planned tax incentives.
DIHK cautious
Peter Adrian, President of the German Industry and Trade Chamber, expressed reservations to the dpa: "It's right to think about how to make the influx of foreign Highly Skilled Workers more attractive," he said. "That a tax deduction leads directly to a discussion about unequal treatment with colleagues in Germany was to be expected."
Dulger, President of the Federal Association of German Employers' Associations, said about the planned tax incentives, "Currently, Germany is a high-tax country. We have a complicated language. When people come to this country, they don't get childcare, they don't find housing. These are the problems we need to address. We are not really convinced by this proposal."
Industry: Instrument for recruiting specialists
Industry President Siegfried Russwurm told the dpa about the tax incentives, "This is a specific tool in other European countries for targeted recruitment of certain specialists from abroad. Typically, it concerns individual persons whom the authorities are named. The instrument should not be used in the broad sense."
"Immediately, questions about equal treatment arise. To attract a broad range of highly skilled workers from abroad, other measures would be more significant: for example, recognizing foreign diplomas and qualifications and simplifying and speeding up the procedures for employment migration in general."
- Rainer Dulger, the President of the Employers' Association, disputes the tax incentives proposed by the Federal Government for highly skilled foreign workers, arguing it contradicts tax fairness.
- The German Press Agency reported Dulger's concern that this proposal could cause industrial unrest and affect net income for all employees.
- The Federal Government's "Growth Initiative" includes tax incentives to attract highly skilled foreign workers to Germany, offering tax exemptions for up to 30% of their gross salary in the first three years.
- Christian Lindner, the Federal Finance Minister, acknowledged the employers' reservations and promised discussions before implementing the proposed tax incentives.
- Peter Adrian, President of the German Industry and Trade Chamber, voiced reservations about the potential for unequal treatment among domestic and foreign highly skilled workers due to the tax deductions.
- Siegfried Russwurm, Industry President, suggested that the tax incentives could be an effective tool for targeted recruitment of specialists but urged recognition of foreign qualifications and streamlined migration procedures as more significant measures.
- An expert commenting on the matter noted that tax incentives are typically used in other European countries for targeted specialist recruitment, but a broader approach with measures such as foreign qualification recognition and simplified employment migration procedures might be more effective in attracting a wide range of highly skilled workers to Germany.
