Germany Seeks to Reduce Taxes for Newly Arrived Foreign Skilled Workers
KEY TAKEAWAYS
1. Germany aims to offer tax relief for newly arrived foreign skilled workers.
2. The relief will apply for the first three years of employment if the measure is approved.
3. Critics argue the measure is discriminatory against nationals.
In a bid to attract more qualified foreign specialists, Germany is working on finalizing significant tax reductions. As part of its "growth initiative," the German government plans to partially exempt newly arrived foreign qualified workers from taxes during their first three years of employment in the country.
Authorities assert that tax relief is necessary to address shortages in various sectors across the country. Federal Minister of Finance Christian Lindner shared that the tax rebate is specifically designed for newly arrived professionals. If approved, the rebate will apply during the first three years of employment, varying between 30%, 20%, and 10%. However, Lindner did not specify the criteria for the different rebate levels.
"We are creating a tax rebate for foreign professionals during their first three years in Germany. There will be rebates of 30%, 20%, and 10% for those who come here as qualified specialists," said German Finance Minister Christian Lindner.
The measure requires approval before implementation, with authorities planning to review its effectiveness after five years.
The Measure to Offer Rebates to Foreign Workers Faces Criticism
While foreign workers have welcomed this facilitation, opposition politicians and trade unionists have criticized the move. According to Deutsche Welle, they argue that it discriminates against domestic workers.
Some governing party members have also criticized the plan. Green Party lawmaker Beate Müller-Gemmeke stated that Germany adheres to the principle of equal treatment and that everyone should be treated the same, viewing the measure as discriminatory against nationals and past foreign workers.
"From my point of view, it would be a bit of discrimination against nationals if we were to say that those who come from other countries are exempt from paying tax on at least a certain part of their salary," remarked Green Party lawmaker Beate Müller-Gemmeke.
Federal Minister of Labour Hubertus Heil echoed the criticism, suggesting that Germany should instead focus on removing bureaucratic hurdles and speeding up visa issuance.
Recent data from the German Economic Institute indicate a shortage of approximately 573,000 skilled workers in Germany.