Tax benefits for small and medium-sized enterprises

With the law on an immediate tax investment program to strengthen Germany as a business location, which came into force on July 19, 2025, the legislature is creating targeted relief measures, particularly for small and medium-sized enterprises. The aim is to stimulate investment, improve liquidity, and strengthen the competitiveness of the German economy.

What does this mean for companies?
Investments in modern equipment, digital infrastructure, or future technologies can now be claimed for tax purposes more quickly. Certain expenses can be considered directly in the year of acquisition, instead of being depreciated over many years. This creates financial flexibility and facilitates the financing of further projects.

The regulations are deliberately designed to be unbureaucratic – a separate application process is not required. Companies thus benefit from the tax relief promptly, which represents a noticeable improvement, especially for medium-sized businesses with equity financing.

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Key measures at a glance:

• Reintroduction and expansion of declining-balance depreciation (AfA) to up to 30% annually (maximum three times the linear depreciation).

• Introduction of a super depreciation allowance for electric vehicles: Up to 75% of the purchase costs can be depreciated in the first year.

• From 2028 onwards, a gradual reduction of the corporate tax rate from the current 15% to 10% is planned.

We would be happy to examine how your company can benefit from the new tax regulations and how investment decisions can be structured in a tax-optimized way.