Global Daily Tax News, German Lower House Approves Tax Reform Bill, (Nov 21, 2023)

Germany's lower house of parliament, the Bundestag, approved the Growth Opportunities Act on November 17.

The bill includes various measures intended to encourage firms to pursue technological innovation and environmental improvements. Proposals include improved depreciation rules for the construction industry, enhanced tax reliefs for research and development, and more flexible loss deduction rules.

In the area of research and development, material costs will be added to the list of eligible expenditure, the maximum qualifying expenditure will be tripled, and the rate for small and medium-sized companies will rise to 35 percent, up from 25 percent.

The legislation also makes changes to the rules regarding the issuance of electronic invoices, with effect from January 1, 2025, towards the introduction of a mandatory requirement for businesses to issue electronic invoices for business-to-business supplies.

The package now moves to the Bundesrat for its approval.