F.Finance Minister Olaf Scholz (SPD) wants to encourage employers to involve their employees more in the company. The SPD politician wants to double the allowance: from 360 to 720 euros. Such investments are of considerable importance, not least for young companies. “A flourishing start-up scene is important for our country, it strengthens the innovative capacity of the economy,” said the SPD politician of the F.A.Z. “That’s why I am introducing new rules. Young companies should be able to really get started, even in difficult times. “
The finance minister wants to swiftly pass the “draft law to strengthen Germany as a fund location”, which contains tax relief for employee equity participation, into the departmental vote. The draft law is to be passed in the federal cabinet this year. In addition to doubling the tax-free maximum amount, tax deferrals for such investments and bureaucratic simplifications are planned. The aim is to make start-ups more competitive and to make Germany more attractive as a fund location.
“The tax is only due when a stake is actually sold,” says Scholz. So far, the tax is due when the shares are transferred. The employees would then have to pay taxes, although they had no cash flow and they no longer had money, it is said to justify. With the new regulation, taxation of this so-called dry income will be avoided.
“The middle class should be stimulated to social advancement”
In addition, it is planned to extend the VAT exemption for investment funds. In future, management services for venture capital funds are also to be exempt from sales tax. At the beginning of July, the coalition committee agreed to tackle employee participation. “We will also address the special situation of start-up companies and create an attractive opportunity for employee participation.” The associated financial volume was put at 100 million euros.
The CDU, however, is thinking of a much more luxurious solution than the finance minister. She has drawn up a position paper with the programmatic heading: “Improve employee equity participation and share culture – secure participation in prosperity”. For example, employees should be able to receive at least 3500 euros a year in shares without having to pay taxes and social security contributions.
The Association of Catholic Entrepreneurs welcomed the debate that had started. “Employees must be enabled to participate in productive assets; the middle class should be stimulated to social advancement and enabled to build up wealth ”, said its chairman Ulrich Hemel. The Federal Association of Employee Participation and the Association of German Management Associations called on the MPs in a letter to present the current improvement as well as a roadmap in order to increase the tax allowances to at least 3600 euros per year at the beginning of the next legislative period.