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Germany Tax Overhaul Promises Lower Rates for Partnerships

March 24, 2021, 4:55 PM

Tens of thousands of German businesses could see their tax bills reduced under a proposal approved by government Wednesday.

The legislation, which Chancellor Angela Merkel’s government hopes to enact before September elections, would address corporate tax law changes that businesses have been demanding for years.

Part of the reform would allow companies that have been classified as partnerships to instead be taxed as corporations, in some cases significantly reducing their tax bites.

“I think it’s very important for the German companies that operate as partnerships, because the shareholders of those partnerships face income taxation of up to 45% income tax, ...