With the Act against harmful tax practices in connection with the transfer of rights, the Bundestag has implemented two important projects of the BMWi: the raising of the threshold for low-value assets and the tax exemption of grants for business angels under the INVEST funding program.
The previous tax exemption for INVEST program grants only applied to the old program until the end of 2016. However, as of January 1, 2017, the funding conditions of the INVEST program were significantly improved. Among other things, the eligible investment amount for the 20% acquisition grant was doubled, and a 25% EXIT grant was introduced to offset taxes on capital gains. With today's decision, the German Bundestag is paving the way for investors to fully benefit from these improvements—tax-free. This makes investments in startups even more attractive.
Federal Minister Zypries commented:
"The Bundestag has sent an important signal for better investment conditions for startups and less bureaucracy. We were able to successfully raise the limit for immediate depreciation of low-value assets. This significantly eases the burden, especially for small and medium-sized enterprises, and creates incentives for investment. In the future, companies and employees will be able to write off purchases such as tablets and office supplies directly in the year of purchase, instead of having to record them over many years in a bureaucratic and complex process. The Bundestag is also paving the way for improved support for private venture capital. This will provide even greater support to young, innovative companies in their search for private investors for the necessary start-up capital. This will enable us to remain competitive with the products of tomorrow."
After more than 50 years, the threshold for minor assets will now be raised from 410 euros to 800 euros.
