# German tax depreciation for SMEs

> Live situation record from CLSTR: https://clstr.news/situations/german-tax-depreciation-for-smes
> Updated: 2026-08-12T08:13:11.000Z. Sources: 5. Developments: 2.

Small and medium-sized enterprises (SMEs) in Germany may utilize special depreciation under § 7g EStG to accelerate tax burden reductions following investments in machinery, vehicles, IT, or equipment.

Enhanced by the Growth Opportunities Act (Wachstumschancengesetz), eligible companies can claim special depreciation of up to 40 percent of acquisition or production costs. This can be applied during the year of purchase and over the following four years to provide liquidity advantages by reducing taxable profit earlier in the investment cycle. To qualify, a company’s profit in the fiscal year prior to the acquisition must generally not exceed a statutory limit of 200,000 euros.

## Timeline

### 2026-08-12: Germany offers special tax depreciation for SMEs

German SMEs can utilize special depreciation under § 7g EStG to claim up to 40% of investment costs for tax relief, aimed at improving liquidity for small and medium-sized businesses.

3 sources. https://clstr.news/cluster/germany-offers-special-tax-depreciation-for-smes

### 2026-08-12: Germany: Tax deductions and charging tariffs offer travel cost savings

Tax deductions for travel and strategic electric vehicle charging tariffs can significantly reduce costs for commuters and travelers in Germany.

2 sources. https://clstr.news/cluster/germany-tax-deductions-and-charging-tariffs-offer-travel-cost-savings

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Cite as: German tax depreciation for SMEs. CLSTR, https://clstr.news/situations/german-tax-depreciation-for-smes