There are reports that confirm that the group of four states is now united on plans to simplify the tax law and to reduce the country administration, while also increasing incentives for corporations to invest in Germany. Carsten Kuhl, the social Democrat (SPD) Finance Minister for Rhineland Palatinate said in a public statement that Germany federal states are on the verge of reaching a common proposal.
The proposal, which is considered to be tax-neutral, contains plans to increase the tax-deductible business expense allowance for employees by EUR 150 ($199) from EUR 1,000 currently to EUR 1,150, a measure expected to benefit around one million employees in Germany. The extended allowance is meant to simplify tax returns for people.
Maurizio Murgia, the Dean and Professor of Finance at the School of Economics and Management at Free University of Bolzana-Bozen, who has invested much time in studying European tax systems, told Asia Outbound that the new plans to simplify the German tax codes will be effective.
can say that all that looks to me a positive move in terms of individual tax incentives and economic spillovers. Furthermore, this will help out virtually everyone working in Germany and running a business there, including Chinese individuals, said Mr. Murgia.
The German government is also planning on deducting costs for working at home by advocating a flat rate of EUR 100 a month for various cost to use a room at home. The money is designed to eradicate the need for individuals to submit evidence of electricity, rent and heating bills.
The 100 Euro a month plan will definitely inspire some individuals to work from home, but the sum is not large enough to persuade someone to move to Germany.
here are good reasons to invest or work in Germany, but I doubt that this deduction for a desk at home is something worth mentioning to someone thinking about moving here, said Alfrons J Weichenrider, Professor of Economics and Public Finance, University of Frankfurt, in an interview with Asia Outbound.
Chinese individuals who are interested in moving to Germany for work will not be induced to by this deal, although the country taxation will be simplified and company deductibles will be increased.
Weichenrider said, he proposals are of only very low monetary significance. A larger effect would come from the discussed change in the tax schedule. /p>
