The so-called Growth Opportunities Act (WCG) came into force on 28 March 2024. Most changes will apply retroactively from 2023 or 1 January 2024, but some will only apply from 1 January 2025 or later. Some tax reliefs are temporary. The measures adopted primarily affect companies and investors, but also employees and pensioners.

There are already reports of cancelled measures and lower increases than originally expected. Nothing has changed in this respect. The statements therefore remain current. Alongside the implementation of e-invoicing for companies in the B2B sector, here is a brief overview of other significant changes:

• From 1 January 2024, companies can deduct gifts for business partners of up to EUR 50 as a business expense reducing profits.
• The eligible gross list price for electric company cars has been increased to EUR 70,000.
• The already expired time limit for declining balance depreciation on movable fixed assets was reintroduced for purchases between 1 April 2024 and 31 December 2024. This applies up to a maximum of twice the value of straight-line depreciation, or 20%.
• Small businesses generally do not need to submit a VAT return from 2024.
• The threshold for the obligation to submit an advance VAT return will be increased to EUR 2,000 from 2025.
• The option of taxation on the basis of the consideration received will be increased to EUR 800,000 from 2024.
• The thresholds for the obligation to keep accounts will also be raised to EUR 800,000 turnover or EUR 80,000 profit for commercial enterprises as well as agriculture and forestry for financial years after 31 December 2023.
• There are also changes to the Corporation Tax Act and the Reorganization Tax Act.

The exemption limit for private sales transactions will increase to EUR 1,000 from 2024 and the lump sum for professional drivers to EUR 9/day. Pension taxation will be reduced by 0.5% for new pension cohorts and the old-age relief amount will be adjusted accordingly. For research and development projects, investment costs are now also eligible for funding.

One of the upcoming publications will focus on the changes regarding inheritance tax for individuals with limited tax liability, as well as the digital beneficiary register.

If this article interests you, read also:
E-bill for companies from 1 January 2025
Tax exemption for income generated by small-scale photovoltaic (PV) systems
Digital overhaul of business invoicing practices

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