Germany offers tax relief on digital assets

January 21, 2021

As part of a €2.3 billion ($2.79 billion) tax relief plan, businesses will now be able to claim tax relief for purchases like computers, printers and software in the year of purchase.

Up until now, the purchases from companies like computers, monitors, scanners, printers and software could be written off over several years. A new announcement from German Finance Minister Olaf Scholz, the writing off of these digital assets will now be possible in the same year of purchase.

As Reuters reports, Scholz expects the annual tax relief with this initiative for businesses to be around €2.3 billion ($2.79 billion). Talking to Reuters, Scholz said: “I want to make a quick, targeted and unbureaucratic contribution to this with the tax law. This will provide a great tax incentive to invest in computers, software and digitalisation. This is also good news for all those who are currently working in a home office.”

The initiative is planned for a five year period and the ministry expects the total stimulus to be about €11.5 billion ($13.96 billion) for companies and consumers.

Categories : Around the Industry

Tags : Business Digitalisation Germany IT Reuters Tax Relief