The stumbling block is the widely announced investment allowance (IFB) of ten percent. This should be capped with one million euros. Small and medium-sized enterprises in particular would benefit from this. Larger companies would have no incentive, explains the spokesman for the industry division in the Chamber of Commerce, Erich Frommwald. With a cap of one million euros and an IFB of ten percent, the tax advantage at a corporate income tax rate of 23 percent in the future would amount to 23,000 euros. With an investment amount in the double-digit million range, this is not the decisive point for investments.
“Higher cap”
Frommwald demands that the IFB should be increased to at least 20 percent and that the investment amount should be capped at ten instead of one million euros.
In principle, the tax reform is to be welcomed. It relieves the workforce and the entire economy would benefit from it. What is sorely missed, however, is the automatic compensation of the cold progression, says Frommwald.
Source: Nachrichten
