New Tax Regulations Starting in 2026: What Businesses Need to Know Now

At the start of 2026, numerous tax reforms will take effect that will directly affect businesses in Germany. Many of these changes stem from the 2025 coalition agreement and the federal government’s economic policy realignment. It is already clear today that the coming year will be one of the most reform-intensive periods in recent tax policy. For companies, this means: Those who proactively align their tax processes, investments, or financing strategies can realize significant advantages—those who hesitate, however, risk missing important deadlines and planning opportunities.

Immediate Investment Program: Relief for Businesses in Economically Difficult Times

The law for an immediate tax investment program was already passed in the summer of 2025. Economic conditions in Germany remain challenging, and many businesses are seeking ways to stay competitive or avoid planned relocations abroad. This is precisely where the Immediate Investment Program comes in:

Companies benefit from a gradual reduction in the corporate income tax rate, a reduction in the retained earnings tax rate, and a significant expansion of the research tax credit. The aim of these measures is to facilitate investment in future technologies and to strengthen Germany as a business location in the long term. The reform provides leeway in particular for companies that pursue innovative business models or wish to invest in digital infrastructure.

Tax Amendment Act 2025: Tax Relief, Digitalization, and Procedural Streamlining

Also relevant are the changes proposed in the fall of 2025 as part of the Tax Amendment Act 2025, which is still going through the parliamentary process but is expected to take effect in significant parts at the turn of the year.

Companies in the restaurant industry will benefit from the removal of the time limit on the reduced sales tax rate for food. The increase in the mileage allowance to 38 cents per kilometer starting from the first kilometer particularly benefits commuters and makes it easier for employers to plan their mobility strategies. In addition, the mobility bonus will be continued without a time limit.

For agricultural and forestry businesses, the law includes additional tax relief, particularly in connection with agricultural diesel. In addition, procedures related to input tax refunds will be further digitized—in the future, certain notifications can be sent electronically. However, the law has faced some criticism, particularly regarding expected tax revenue shortfalls, which is why changes may still occur during the parliamentary process.

Location Promotion Act: Incentives for Investment and Growth

With the Location Promotion Act (StoFöG), the federal government aims to support small businesses and startups in particular during their growth phase. A central component of the reform is the improvement of financing options: investments by funds in infrastructure projects and renewable energies are to be facilitated, while bureaucratic hurdles in the financial market sector are to be reduced.

Of particular note is the planned increase in the maximum amount for the transfer of hidden reserves under Section 6b of the Income Tax Act (EStG) from the current 500,000 euros to two million euros in the future. This so-called roll-over makes it easier for young, innovation-oriented companies in particular to enter the market by allowing capital gains to be reinvested in a tax-efficient manner.

Minimum Tax Adjustment Act: New Obligations for Internationally Active Companies

As part of the worldwide introduction of a global minimum tax, the Minimum Tax Adjustment Act is also taking shape in Germany. The planned regulations are closely aligned with OECD guidelines and primarily affect internationally structured corporate groups.

A key change is the inclusion of deferred taxes in the minimum tax calculation. In addition, corporate groups will be required in the future to file a so-called minimum tax report (GloBE Information Return). This reporting requirement represents a significant additional administrative burden for many companies—making it all the more important to prepare for the new requirements early on.

Second Occupational Pension Strengthening Act: Stronger Employer Incentives

The federal government also plans to further expand occupational pension schemes. The Second Occupational Pension Strengthening Act has already been passed and provides for a significant increase in the subsidy amount starting in 2027. This opens up new opportunities for employers to offer attractive additional benefits in the competition for qualified workers. Even though many measures will not take effect until 2027, companies should begin preparing strategic decisions now.

Modernizing the fight against undeclared work and new requirements for point-of-sale systems

With another reform package, lawmakers aim to make financial controls on undeclared work more efficient. Plans include automated data matching, a more risk-oriented audit approach, and an extension of the retention period for accounting documents to ten years. At the same time, new regulations under the Cash Register Security Ordinance are pending, which are intended to clarify technical requirements and will particularly affect taxi companies and businesses with digital cash register systems.

Artists’ social security contribution to decrease slightly

Relevant for many companies: The artists’ social security contribution will be slightly reduced to 4.9 percent in 2026. Those who regularly commission freelance artists or creatives can already factor this into their budget planning.

Conclusion: 2026 will be a year of profound tax changes

The breadth of the reforms makes it clear that companies will face comprehensive changes in 2026. New reporting requirements, additional opportunities for investment incentives, and changes in nearly all areas of taxation require careful, forward-looking tax planning.

For many businesses, it is worthwhile to review existing structures and set the course for the coming year in a timely manner. As experienced tax advisors in Düsseldorf and Oberhausen, we support you in making the most of tax opportunities, identifying risks, and implementing the new legal requirements in a legally compliant manner.