OrbitaxThe Federal Cabinet on 18 January 2006 adopted a draft Bill providing for tax amendments aimed at the furtherance of economic growth and employment (Entwurf eines Gesetzes zur steuerlichen Förderung von Wachstum und Beschäftigung). The most important proposed amendments to the enterprise taxation are summarized below. Unless otherwise indicated, the proposed amendments would apply from tax year 2006.
|Approved Changes|Germany
Enterprise taxation
(a) Depreciation. In respect of movable fixed assets (e.g. plant, machinery and equipment) acquired or manufactured after 31 December 2005 but before 1 January 2008 (the expected entry-into-force date of a general reform of enterprise taxation), the declining-balance rate of depreciation would be three times the allowable straight-line rate, with…
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