That is why companies should review their investments now and bring them forward in a targeted manner

Under current law, the applicable depreciation rules, combined with the corporate income tax cut scheduled to take effect in 2028, present a particularly favorable window of opportunity for corporate investments. Companies that make planned purchases early can reduce their tax burden in the coming years and strengthen their liquidity in the long term.

With the so-called “growth or investment booster,” declining-balance depreciation was reintroduced for certain movable assets—such as machinery, technical equipment, and vehicles. For investments expected to take place between July 1, 2025, and December 31, 2027, companies can claim up to 30% of the respective remaining book value for tax purposes each year. Unlike straight-line depreciation, the depreciation charges are significantly higher in the early years, leading to a noticeable tax reduction during the period of high tax liability. The total effect over the asset’s useful life remains the same, but the timing advantage creates liquidity benefits. Therefore, it may make sense to strategically shift investments into this preferential window.

In parallel with this, a gradual reduction in corporation tax from the current 15 % to 10 % is planned from 2028 onwards. From a tax perspective, it is advisable to schedule the highest possible depreciation allowances in years with a higher tax rate and to defer profits to the period when tax rates are lower. Investments made by the end of 2027 allow for precisely this advantageous combination.

Certain electric vehicles are currently of particular interest: under certain conditions, a depreciation of up to 75 per cent of the acquisition cost may be claimed in the year of purchase – a significant impact on cash flow, particularly where profits are high.

For businesses, the following applies: investment decisions should currently be assessed not only on the basis of business considerations but also from a tax perspective. To this end, it is advisable to assess whether planned purchases can be deferred until 2027, to analyse the pros and cons of declining-balance depreciation versus straight-line depreciation on a case-by-case basis, to simulate the expected profit trend and tax implications, and to consider tax, financial and subsidy-related aspects together.

As each investment must be assessed on a case-by-case basis, any measures should always be discussed as part of a personal tax consultation. This is the only way to determine, with legal certainty, whether and to what extent bringing forward investments is actually worthwhile.

Please note: This information is not a substitute for individual tax advice. The actual effects will depend on your company’s specific circumstances.