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Germany offers special tax depreciation for SMEs
Small and medium-sized enterprises (SMEs) in Germany can utilize special depreciation under § 7g EStG to reduce tax burdens more quickly following investments in machinery, vehicles, IT, or equipment.
Under the provisions enhanced by the Growth Opportunities Act (Wachstumschancengesetz), eligible companies can claim special depreciation totaling up to 40 percent of acquisition or production costs. This can be applied in the year of purchase and over the subsequent four years, providing a liquidity advantage by reducing taxable profit earlier in the investment cycle.
To qualify, the company's profit in the fiscal year prior to the acquisition must generally not exceed a statutory limit of 200,000 euros.
Entities
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] Special depreciation can be applied in the year of acquisition and the following four years. www.presse-board.de · weltjournal.de
- [● 2 SOURCES] Companies can claim special depreciation of up to 40 percent of acquisition or production costs. www.presse-board.de · weltjournal.de
- [● 2 SOURCES] The special depreciation measure is primarily aimed at small and medium-sized enterprises. www.presse-board.de · weltjournal.de
- [○ 1 SOURCE] The profit in the fiscal year preceding the acquisition must not exceed a limit of 200,000 euros. weltjournal.de
- [● 2 SOURCES] Special depreciation under § 7g EStG allows for additional tax relief. www.presse-board.de · weltjournal.de