Guest commentary: It's time for a big throw with corporate taxes
Germany needs tax law that takes account of entrepreneurial risks and does not brake investments, Johanna Hey and Matthias Hiller believe. Nine changes are necessary for this.
The German government has introduced a tax investment program and a location promotion law after Friedrich Merz was elected. The measures include improved financing options and a reduced corporate tax rate from 2028. However, the need for reform in corporate taxation remains, with companies facing issues such as bureaucracy, high costs, and international competition.
A report by the Commission "Simplified Corporate Tax" initiated by the Federal Ministry of Finance in 2024 provides recommendations. To boost competitiveness, investments should be given greater tax consideration, including immediate deductions for digitalization, AI, and cybersecurity expenses.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
