German Coalition Government Agrees on Tax Measures Including Corporate Tax Rate Cut

German conservatives under Friedrich Merz and the center-left Social Democrats (SPD) have reached agreement for a coalition government, which was announced on 9 April 2025. The agreement reportedly includes several tax measures:

• A reduction in the corporate tax rate by one percentage point per year for five years starting in 2028;
• The introduction of a 30% depreciation allowance for equipment investments between 2025 and 2027(declining balance depreciation); and
• A permanent reduction in the …