Germany: Draft legislation aimed at stimulating investment introduced to lower house of Parliament
Measures include gradual reduction in corporate tax rate.
The governing parties have introduced draft legislation to the lower house of Parliament (Bundestag) for an "Act for an immediate tax investment program to strengthen Germany's business location."
The draft bill includes the following measures, all of which are contained in the coalition agreement of the new federal government (read TaxNewsFlash):
- Temporary reintroduction and increase of declining balance depreciation for investments in movable assets
- Gradual reduction of the corporate tax rate and the retained earnings tax rate starting from 2028
- Expansion of the research allowance
Read a June 2025 report prepared by the KPMG member firm in Germany
For more information, contact a KPMG tax professional:
Maximilian Hummel | mhummel1@kpmg.com