One out of three companies not prepared for tax reform

Even though a corporate tax reform will take effect shortly, one third of German small and medium-sized entities (SMEs) are not adequately prepared. Important changes such as a decreased tax burden or changes with regard to depreciation are unknown. This finding was revealed through an online survey in which about 1000 SMEs participated over the past weeks. The survey in question was conducted by Sage, a software manufacturer.

The above mentioned corporate tax reform taking effect on January 1st 2008 is to reduce the tax burden on the German economy. Thus, the average tax burden on stock corporations is to fall from an average 39% to about 30% in future (depending on local trade tax rates). This decrease is mainly due to a reduction of the corporate tax from 25% to 15%. However, in particular this important aspect is hardly known among SMEs: 41% of respondents did not know their future total tax burden. Furthermore 23% of entrepreneurs were not aware of the fact that in future there is a reduced tax rate levied on reinvested profits. Several other changes are also unknown.

Sage, who are a manufacturer of business software, set up an information portal in co-operation with an internal auditing and consulting firm which provides useful information for SMEs on the tax reform. From this portal there is also a free guide entitled “Unternehmenssteuerreform 2008″ available which presents the most important features of the tax reform and gives useful advice. GERMAN

Matomo