Overview
- Germany’s finance minister Lars Klingbeil is preparing a wide tax-simplification package that draws on two prior expert concepts for a citizen-focused income tax and a simplified company tax.
- The plan includes administrative moves such as official assessments (Amtsveranlagung), a single per-workday allowance to replace multiple expense lines, higher thresholds and simpler bookkeeping for the self-employed, and stronger withholding at source.
- Company measures under consideration would offer a choice between corporate and partner taxation, simpler loss offset rules, leaner trade tax rules, easier tax-free restructurings and reduced excess international anti-abuse rules.
- Two fiscal variants are being discussed, with reported price tags of about €10 billion and €20 billion, leaving open how the relief would be refinanced and prompting the SPD to consider higher rates for top earners.
- States are helping to draft an entlastung catalogue for a package due around July 1, and the proposals aim to boost compliance and cut the need for paid tax advisers for low-income filers while risking renewed coalition conflict over who pays.