No innovation contribution needs to be paid
Micro and small businesses do not have to pay innovation
contribution (middle-sized businesses, however, do). The innovation
contribution, along with the local business tax, represents a
higher tax burden for many companies than corporate tax.
No transfer pricing documentation needs to be prepared
Micro and small businesses do not have to prepare transfer
pricing documentation (middle-sized businesses, however, do). This
can save significant costs.
Investment tax base deduction is available
SMEs can benefit from an investment tax base deduction for real
estate that has not been used before (including renovations,
extensions, changes in purpose, or alterations that increase the
property's acquisition cost) or for technical equipment,
machines, vehicles, software usage rights, or intellectual property
that have not been used before. This means that the investment cost
can be deducted twice from the corporate tax base:
