{"id":1820,"date":"2025-07-05T16:18:00","date_gmt":"2025-07-05T14:18:00","guid":{"rendered":"https:\/\/sks-stb.de\/2025\/11\/07\/room-for-tax-planning-created\/"},"modified":"2026-01-28T16:40:31","modified_gmt":"2026-01-28T15:40:31","slug":"room-for-tax-planning-created","status":"publish","type":"post","link":"https:\/\/sks-stb.de\/en\/2025\/07\/05\/room-for-tax-planning-created\/","title":{"rendered":"Room for tax planning created!"},"content":{"rendered":"\n

Dear ladies and gentlemen, dear clients, dear friends,<\/p>\n\n

It was adopted\u2014the so-called “Booster of Growth”<\/strong>\u2014which opens completely new opportunities for tax planning! With the Law for an Immediate Investment Tax Program<\/strong> to Strengthen Germany as a Business Location, coming into effect as of July 19, 2025<\/strong>, Germany attempts to become interesting again for investments.<\/p>\n\n

Below, we introduce the tax changes brought about by this law and explain how you can use them strategically in your favor and that of your business<\/strong>.<\/p>\n\n

What is an “Investment Booster”?<\/strong><\/p>\n\n

This refers, among other things, to the reintroduction of declining-balance depreciation <\/strong>(\u201cdegressive depreciation\u201d).<\/p>\n\n

These amendments shall be in force for movable fixed assets acquired or manufactured after June 30, 2025<\/strong>, but prior to January 1, 2028<\/strong>.<\/p>\n\n

Declining-balance depreciation allows a tax deduction three times<\/strong> the straight-line depreciation, with a maximum of 30% per year.<\/strong><\/p>\n\n

This means:<\/strong>\u2022 Higher depreciation allowances in the first few years\u2022 Noticeable tax relief<\/strong>\u2022 Preservation of liquidity<\/strong>\u2022 Potential interest savings through tax deferral<\/strong><\/p>\n\n

This speeds up depreciation charges in the early years and thus reduces taxable income, conserves liquidity , and may yield interest effects.<\/strong> Over the long term, total depreciation remains the same, but the ability to write off up to 30% in year one can have a big impact.Example:<\/strong><\/p>\n\n

Suppose the managing director of a GmbH purchases a refrigerator for \u20ac3,000 (net) on January 1, 2026<\/strong>, for the office kitchen\u2014a wish from the team for quite some time. <\/p>\n\n

\u2022 Under normal linear depreciation: <\/strong>\u20ac300\/year over 10 years.\u2022 Under declining-balance depreciation:<\/strong> \u20ac900 (30%) can be deducted in year one.<\/p>\n\n

Tax effect:<\/strong>With declining-balance: \u20ac135 tax saved (\u20ac900 \u00d7 15%)With straight-line: only \u20ac45 saved. E-Mobility at a Blitzing Pace<\/strong><\/p>\n\n

Another \u201cinvestment booster\u201d applies to business-used electric vehicles<\/strong>. In the year of acquisition, 75% of the purchase cost may be depreciated directly. This applies to vehicles powered solely by electric motors and acquired after June 30, 2025, and before January 1, 2028.<\/strong><\/p>\n\n

For example<\/strong>, an EV costing \u20ac70,000 (net) results in \u20ac52,500 depreciation in the first year<\/strong>!<\/p>\n\n

Of course, any capital gain on disposal in later years will increase accordingly. <\/strong><\/p>\n\n

What About Corporate Income Tax? It\u2019s Going Down!<\/strong> A key highlight of the law is the gradual reduction of corporate income tax<\/strong>:Starting 2028<\/strong>, the rate will decrease by 1 percentage point per year,<\/strong> from 15%<\/strong> to 10% by 2032.<\/strong><\/p>\n\n

The rate on retained earnings<\/strong> (\u00a7 34a EStG) will also fall:<\/p>\n\n

From 28.25% (until 2027)<\/strong> to 25% by 2032<\/strong>.<\/p>\n\n

Double benefit:<\/strong> Strategic investors gain from accelerated write-offs<\/strong> now AND lower tax rates later<\/strong>!<\/p>\n\n

What Should You Do Now?<\/strong>Review your planned investments \u2014 is it better to delay or bring them forward?Consider using declining-balance depreciation<\/strong> as a liquidity tool.Keep future tax rates<\/strong> in mind for your business planning.<\/p>\n\n

Want to know how this new investment program could benefit your company? Let\u2019s talk \u2014 we\u2019re here to help you optimize your investment and long-term tax strategy.<\/p>\n\n

<\/p>\n\n

This communication contains general information and does not constitute specific legal advice. For personalized guidance, please reach out to us directly. <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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