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Planned tax relief for companies is delayed

Due to government dispute

The traffic lights continue to struggle with the 2024 budget..aussiedlerbote.de
The traffic lights continue to struggle with the 2024 budget..aussiedlerbote.de

Planned tax relief for companies is delayed

The traffic light coalition no longer expects to reach an agreement with the CDU/CSU on the planned tax breaks for companies this year. "This means that the necessary tax incentives for investment and innovation, on which the economy depends, cannot be introduced at the beginning of 2024," the financial policy spokespersons of the traffic light parliamentary groups in the Bundestag announced on Wednesday.

The federal government has actually planned relief for small and medium-sized companies amounting to around seven billion euros per year from 2024 and a total of over 32 billion in the coming years. The core element is a premium of 15 percent of the total amount for investments in climate protection measures. In addition, companies are to be granted significantly better depreciation opportunities for a limited period of time - both for movable assets and for residential construction. Companies should also be better able to offset losses against profits. Tax incentives for research will also be extended.

In the case of the so-called Growth Opportunities Act, the Bundesrat recently called in the mediation committee between the chamber of the federal states and the Bundestag. Many federal states and the CDU/CSU complain that the majority of the expected reduction in tax revenue will fall to the federal states and municipalities. Ampel accused the CDU/CSU of breaking off negotiations despite concrete compromise proposals that could have massively reduced the financial burden on the federal states and local authorities. There must be further talks on this.

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Due to the ongoing government dispute with the CDU/CSU, the planned tax relief for companies, which is crucial for investment and innovation, might not be implemented as scheduled in 2024. This disagreement could hinder the federal government's plans to provide tax incentives worth around seven billion euros annually for small and medium-sized companies, with a focus on investments in climate protection measures.

Source: www.ntv.de

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