Lindner is planning these changes for employee capital participation

Berlin Federal Finance Minister Christian Lindner (FDP) wants to promote Germany as a start-up location with a comprehensive reform of employee participation. Lindner wants to significantly increase the tax allowance for employee participation from 1440 euros to 5000 euros. This emerges from an internal key issues paper by the Federal Ministry of Finance, which is available to the Handelsblatt.

With the “better tax framework for employee capital participation, we want to make it easier for young companies to recruit employees and to assert themselves in the international competition for talent,” writes Lindner to the Bundestag.

The Minister of Finance also wants to solve another problem that start-ups see as a significant obstacle to building up companies: the so-called “Dry Income Taxation”. Even if there is no inflow of money, from the point of view of the tax authorities there is an inflow of wages, which is therefore taxed.