Federal Council Approves the Future Financing Act: An Overview of the Changes
The Future Financing Act was recently approved by the Bundesrat after being passed by the Bundestag on November 17, 2023. This law, which will now be submitted by the Federal Government to the Federal President for signature, comprises over 30 articles aimed at facilitating access to the capital market for small and medium-sized enterprises as well as startups and promoting investment in renewable energy.
Access to Capital Markets and Strengthening Competition
A central objective of the package of measures is to facilitate access to the capital market for startups and SMEs. This is to be achieved by aligning tax regulations for investment funds with the requirements of other EU member states. Competition is to be strengthened to make Germany a more attractive location for national and international investors.
New Pathways Through Blockchain and Crowdfunding
The law will enable future stock issuances based on blockchain technology. This adjustment to the legal framework for crypto-assets is intended to establish Germany as a legally secure location for this promising technology. In addition, liability regulations for crowdfunding projects will be revised.
Expansion of the Employee Savings Allowance
A significant change concerns the employee savings allowance: income limits will be doubled, which experts say will expand the pool of eligible individuals to 13.8 million. For single individuals, the new limit is 40,000 euros; for married couples, it is 80,000 euros. In addition, employee participation in their employer’s equity will be made easier by raising the tax allowance from 1,440 euros to 2,000 euros.
Focus on Consumer Rights
The law also includes changes affecting consumer rights. Among other things, regulations for payment account comparison websites, consumer loan agreements, and residual debt insurance are being modified.
These comprehensive changes to the law aim to strengthen the economy, promote innovation, and improve the framework conditions for investment and entrepreneurship in Germany.
Professional advice
Do you have your own startup or run a small or medium-sized business? We would be happy to advise you on the implications of the legislative changes. Our tax advisors in Düsseldorf and Oberhausen are here to help. Contact us!
