Preliminary draft for a second Future Financing Act

With the preliminary draft, the Federal Ministry of Finance aims to further strengthen the competitiveness and attractiveness of Germany as a financial centre and, in particular, to improve financing options for young, dynamic companies. In addition to changes in numerous laws and regulations that are intended to facilitate access to the capital market for companies and to promote the venture capital ecosystem, the draft also includes the following changes in tax law:

• Adjustment of the Investment Tax Act to remove obstacles to investments in renewable energies and infrastructure
• Adjustment of the taxation of investments in commercial partnerships by funds falling under the Investment Tax Act
• Increase of the maximum amount for the transfer of hidden reserves from the sale of shares in corporations from the current 500,000 euro to 5,000,000 euro (§ 6b Abs. 10 Sentence 1 EStG-E). The change is to be applied for the first time to profits from the sale of corporate shares that are generated in financial years beginning after the day following the announcement of the law.