Taxes: Draft bill: Severance payments will no longer be subject to tax under certain conditions
The finance minister wants to make smaller severance payments tax-free and abolish paper-based tax returns, just like tax classes III and V. A lot will also change for companies.
German Finance Minister Lars Klingbeil plans to simplify the tax system with a package of measures. The proposed "Steuervereinfachungsgesetz 2027" includes making smaller severance payments partially tax-free, requiring electronic tax returns, and increasing the threshold for submitting tax returns due to side income to 800 euros per year. The law would also abolish tax classes III and V, and introduce a new procedure for companies to opt for corporate tax. The proposed law lists 28 measures to simplify taxation.
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.
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