Start-ups to pay less tax

The federal state of Baden-Württemberg wants to introduce a corresponding initiative in the Bundesrat. However, its own state government must first approve the proposal.

Start-ups should pay less tax in future. At least that is what the federal state of Baden-Württemberg wants to achieve, according to a cabinet bill quoted by the Stuttgarter Zeitung. A decision on the proposal is to be made on Tuesday in the Council of Ministers of the green-black state government. Baden-Württemberg can then submit the proposal to the Bundesrat in mid-February.

According to the bill, start-ups should be able to offset their losses from the first six years against subsequent profits without restriction. In addition, investors should be able to invest in start-ups more easily without jeopardizing the company's loss carryforward due to the resulting change in ownership. Furthermore, investors' profits should remain tax-free up to five million euros if they are reinvested in a start-up.

These tax advantages are important because "young, innovative companies in particular often have to struggle with financial problems in their start-up phase", said Claus Paal, economic policy spokesman for the CDU parliamentary group in the state parliament, to the Stuttgarter Zeitung.