The Federal Ministry of Finance, led by Lars Klingbeil (SPD), is planning significant reductions to tax allowances for various organizations. According to a draft official document obtained by the newspaper “Bild” (Saturday edition), changes are proposed for tax-Liable corporations, associations of persons, and pools of assets. Starting in 2027, the current tax exemption of 5,000 euros would be reduced to a threshold of 1,000 euros. This measure is projected to bring in approximately 45 million euros in increased tax revenue.
Furthermore, allowances for profits generated from the disposal or restructuring of businesses appear set to be eliminated. Currently, a tax-free allowance of 45,000 euros applies to these transactions. Additionally, the allowance for profits derived from selling shares in limited liability corporations is slated to disappear in the future. Cumulatively, these changes are expected to generate around 300 million euros in additional government income.
