2006-06-01 tax-advantage for the medium-sized-business

The German finance minister Peer Steinbrück wants to offer a new tax-free reserve for the middle-class. This tax-advantage should be bound at terms, which must still write out by an expert-team.

Steinbrück’s concept for this fiscal-reform 2008 shall allow that each shareholder of partnerships can bring their profit of until 100.000 euro in a reserve, so the “Financial Times Germany”, which refers to information from government circles. This reserve shall remain tax-free, if the money is invested later for investments. With this possibility Steinbrück wants to offer an equalization for the planned bisection of the corporate-tax from 25 to 12,5 per cent. This tax is paid by corporate entities. Partnerships pay income-tax.