Germany’s Ministry of Finance unveiled a second draft bill, the Zukunftsfinanzierungsgesetz II (Future Financing Act II), aimed at further enhancing the German capital market on 27 August 2024. Building on the previous Future Financing Act, this new draft seeks to improve Germany’s attractiveness as a financial hub and expand financing options for emerging companies.
The bill focuses on streamlining capital market access for companies, making it easier for them to secure funding. It also aims to promote private investment in growth and innovation by refining the tax framework. Key provisions include increasing the maximum tax-free reinvestment amount for profits from share sales from EUR 500,000 to EUR 5,000,000.
This adjustment applies to profits realised in financial years starting after the bill’s announcement.
Additionally, the bill introduces tax incentives to support investments in renewable energies and infrastructure. It proposes exemptions from municipal trade tax for entities involved in managing renewable energy, certain real estate companies, infrastructure projects, and public-private partnerships. These entities will be classified similarly to special investment funds if they hold significant stakes in corporations.
The draft bill, published in the Official Gazette, aims to create a legally secure environment for infrastructure and renewable energy projects, accelerating Germany’s transition to a more sustainable future.
