Tax & Legal

On 22 March 2022, after tough negotiations, the Bundesrat (Federal Council) approved the compromise reached by the Mediation Committee on the text of the Act to Strengthen Growth Opportunities, Investment and Innovation as well as Tax Simplification and Fairness (Growth Opportunities Act).

In its session of 21 February 2024, the Mediation Committee of the Bundestag and Bundesrat concluded its negotiations in relation to the Act to Strengthen Growth Opportunities, Investment, and Innovation as well as Tax Simplification and Fairness

In its session of 21 February 2024, the Mediation Committee of the Bundestag and Bundesrat has concluded its negotiations on the Act to Strengthen Growth Opportunities, Investment, and Innovation as well as Tax Simplification and Fairness (Growth Opportunities Act). An amended legislative package was adopted but against the votes of the conservative party CDU/CSU.

In its plenary session of 24 November 2023, the Bundesrat refused to approve the Growth Opportunities Act, which requires its consent. The Bundesrat convened the Mediation Committee to discuss several individual provisions of the Act.

On 15 December 2023, the Bundesrat approved the partial implementation of the contents of the Growth Opportunities Act in the Act to Promote the Secondary Credit Market. This includes changes to the interest limitation rule and adjustments resulting from the introduction of the Act for the Modernisation of Partnerships.

On 17 November 2023, the Bundestag approved the Act to Strengthen Growth Opportunities, Investment, and Innovation as well as Tax Simplification and Fairness (Growth Opportunities Act) in the form recommended by its Finance Committee. The Act will be presented to the Bundesrat on 24 November 2023. It cannot currently be ruled out that the Bundesrat will convene the Mediation Committee to discuss individual provisions of the Act (the climate protection investment premium, in particular, will probably be discussed).

At its sitting on 20 October 2023 the Bundesrat (Federal Council/upper house) expressed its opinion on the Growth Opportunities Act initiated by the German government, and which envisages extensive changes in tax law.