Profit limit for investment deduction is constitutional
The restriction of the investment deduction amount to smaller businesses via a profit limit is a constitutionally permissible restriction.
The Schleswig-Holstein Tax Court has ruled that the statutory profit limit for the use of the investment deduction amount by businesses that calculate their profits using the income statement is constitutional. According to the court, the profit limit of 100,000 euros is an expedient criterion for delimiting small and medium-sized businesses, which the investment deduction is primarily intended to support. The legislator is also not obliged to introduce a graduated scale to mitigate hardship.