Legal Requirements

German Corporate Tax Reform 2008

The corporation tax reform approved by the German government on July 2007, will finally become effective on January 1, 2008. The goal of this reform is to establish a corporate tax system that is more competitive internationally and gives an impulse to investments in Germany. 

The most important elements of the reform are:

• To reduce the corporate tax burden by around 9 percent (from 39% to below 30%). This tax cut will also benefit small and mid-sized business enterprises.
• Establish equal taxation treatment of corporations and partnerships.
• To provide incentives for investors to choose Germany as a location for their investments and business.

This new tax law provides relief to both citizens and businesses increasing this way, Germany's attractiveness for future investments. For more information on this topic, please take a look at the home page of the  Federal Ministry of Finance.