The gradual reduction in corporation tax to 10 % from 2028 means less tax for corporations, more financial freedom and better planning for the future.

Currently, the corporate tax burden of corporations - e.g. limited companies such as GmbHs - in Germany is made up as follows:
15 % Corporate income tax
0.825 % Solidarity surcharge
14 % Trade tax
~ 30 %
(with an average collection rate of 400 %)

In order to reduce the overall tax burden to around 25 %, the federal government has decided to gradually reduce the corporate tax rate from 2028. And was as follows:
2028: 14 %
2029: 13 %
2030: 12 %
2031: 11 %
2032: 10 %

This reduction is intended to provide corporations with more liquidity and longer-term planning security. In this way, the German government wants to strengthen Germany as a business location and ensure international competitiveness.

Do you have a corporation?
Then it is best to discuss with us whether you should defer some profits to the future for tax purposes in order to benefit from the change.

Don't you have any?
Sole proprietorships and partnerships will not go away empty-handed either. From 2028, they can pay tax on their undrawn profits at % 27 instead of % 28.25. In 2030 and 2031, the tax rate will fall to 26 % and in 2032 further to 25 %.

As always, we at WSB also know the details 😉.

👉 Would you like to optimize your tax strategy? We at WSB will be happy to help you make the most of the reduction. Get in touch with us: www.wsb-berater.de/kontakt

#Corporate income tax #Investment booster #Future planning #TTax advice #WSB