On July 19, 2025, Germany enacted the Act to Strengthen Germany as a Business Location, a legislative package designed to stimulate investment and enhance the country\u2019s economic competitiveness.<\/p>\n
The core element of the reform is the introduction of accelerated depreciation for movable assets acquired between July 2025 and December 2027. Under the new rule, businesses are allowed to depreciate up to 30% of the acquisition cost in the first year, significantly improving liquidity and making capital investment more tax-efficient.<\/p>\n
Additional tax benefits have been introduced for corporate electric vehicles. The eligible price threshold has been increased to \u20ac100,000, and in many cases, up to 75% of the vehicle\u2019s cost can be depreciated in the year of purchase. This measure provides both financial relief and environmental incentives for businesses modernizing their fleets.<\/p>\n
From 2028 onwards, the law also initiates a gradual reduction of the corporate income tax rate, decreasing from the current 15% to 10% by 2032. In parallel, the effective tax burden on retained earnings is expected to decline. Moreover, tax incentives for research and development activities have been expanded, with improved eligibility under the Forschungszulagengesetz<\/i> (Research Allowance Act), making Germany more attractive for innovative industries.<\/p>\n
According to estimates from the German Economic Institute, the reform may result in a significant increase in private-sector investment and create tens of thousands of new jobs. At the same time, federal tax revenues are expected to decline temporarily\u2014by up to \u20ac80 billion through 2029\u2014although this is projected to be offset by stronger long-term economic growth.<\/p>\n
The law marks a shift in Germany\u2019s fiscal policy, aimed at simplifying the regulatory framework and restoring the country\u2019s appeal as a business-friendly environment. It reflects a broader strategy under Chancellor Friedrich Merz to reduce tax pressure on companies and drive growth through private enterprise.<\/p>\n
\u00a0<\/span>Recommendations for Companies and Investors<\/b><\/p>\n 1. Adjust investment timing.<\/b> 2. Consider transitioning to electric fleets.<\/b> 3. Review profit retention strategies.<\/b> 4. Leverage R&D tax credits.<\/b> 5. Seek professional tax advice.<\/b> On July 19, 2025, Germany enacted the Act to Strengthen Germany as a Business Location, a legislative package designed to stimulate investment and enhance the country\u2019s economic competitiveness. The core element of the reform is the introduction of accelerated depreciation for movable assets acquired between July 2025 and December 2027. Under the new rule, businesses […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[527,513,520,522,521,186,524,515,514,195,233,223,516,508,523,519,428,512,518,434,526,525,517,505,208,177,213,506,504,510,420,507,511,509],"class_list":["post-602","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-2025-tax-policy","tag-abschreibung","tag-business-incentives","tag-corporate-tax","tag-depreciation","tag-deutschland","tag-electric-vehicles","tag-elektromobilitat","tag-forschung","tag-germany","tag-investitionen","tag-investment","tag-korperschaftsteuer","tag-rd","tag-research-and-development","tag-steuerpolitik-2025","tag-steuerrecht","tag-steuerreform","tag-steuerstrategie","tag-tax-law","tag-tax-planning","tag-tax-reform","tag-unternehmensberatung","tag-amortizacziya","tag-biznes-v-germanii","tag-germaniya","tag-investiczii","tag-korporativnyj-nalog","tag-nalogovaya-politika","tag-nalogovoe-planirovanie","tag-nalogovoe-pravo","tag-nalogovye-lgoty","tag-reforma-2025","tag-elektromobili"],"acf":[],"_links":{"self":[{"href":"https:\/\/sugrobov.de\/en\/wp-json\/wp\/v2\/posts\/602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sugrobov.de\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sugrobov.de\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sugrobov.de\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sugrobov.de\/en\/wp-json\/wp\/v2\/comments?post=602"}],"version-history":[{"count":1,"href":"https:\/\/sugrobov.de\/en\/wp-json\/wp\/v2\/posts\/602\/revisions"}],"predecessor-version":[{"id":603,"href":"https:\/\/sugrobov.de\/en\/wp-json\/wp\/v2\/posts\/602\/revisions\/603"}],"wp:attachment":[{"href":"https:\/\/sugrobov.de\/en\/wp-json\/wp\/v2\/media?parent=602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sugrobov.de\/en\/wp-json\/wp\/v2\/categories?post=602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sugrobov.de\/en\/wp-json\/wp\/v2\/tags?post=602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nCapital expenditure originally planned for later years may benefit from being brought forward to fall within the 2025\u20132027 window.<\/p>\n
\nTax incentives significantly improve the business case for adopting electric vehicles in corporate operations.<\/p>\n
\nThe gradual tax reduction supports reinvestment models and favors companies that retain earnings for growth.<\/p>\n
\nIf your business engages in innovation, software development, or technology projects, now is the time to assess eligibility for the expanded research subsidy.<\/p>\n
\nA tailored tax and legal review will help identify how best to benefit from the new incentives.<\/p>","protected":false},"excerpt":{"rendered":"