Bavaria wants tax breaks for start-ups

The CSU demands that investments can be deducted from taxes without limitation.

Bavaria wants to provide incentives to encourage start-ups. "Especially after the Corona crisis, we need start-ups to be able to take off innovatively. The creative minds need capital for this", Bavaria's Finance Minister Albert Füracker (CSU) told the Deutsche Presse-Agentur

in Munich. Venture capitalists are to be able to write off their investments from tax with immediate effect and in unlimited amounts. "In this way, we are shifting a significant part of the financial risk." Profits of private investors should be tax-privileged if they are reinvested.

The fund location law planned by the federal government that is supposed to strengthen Germany as a location for start-ups does not go far enough for the Bavarian CSU politician. The limit of the tax allowance should - so the demand from Munich - be increased from currently 300 euros to 3,000 euros. "This increases the chance that highly qualified employees will commit even more to a start-up, even if high salaries are not yet paid," Füracker told dpa

.

Baden-Württemberg has also proposed tax breaks for start-ups and plans to introduce the idea to the Bundesrat this month (Startbase reported

). Baden-Württemberg is calling for start-ups to be able to offset their losses from the first six years against later profits for tax purposes. Profits from investors should also remain tax-free up to five million euros if they are put into a start-up again.