German Cabinet Approves Investment Program to Support Germany as a Competitive Business Location

The German Ministry of Finance has announced the Federal Cabinet's approval of a draft law on 4 June 2025 for the introduction of an investment program to support Germany as a competitive business location. The program includes the following tax measures:

• A gradual reduction in the corporate tax rate from 15% to 10% through a one percentage point reduction per year for five years starting with a rate of 14% in 2028, 13% in 2029, 12% in 2030, 11% in 2031, and 10% in 2032 and subsequent years…