Modernization of Corporate Taxation in Germany: Enhancing Flexibility, Reducing Bureaucracy, and Embracing Globalization

Habbani Souad; Saadouni Saad

Title:
Modernization of Corporate Taxation in Germany: Enhancing Flexibility, Reducing Bureaucracy, and Embracing Globalization

Authors:
Saadouni Saad | Habbani Souad

Cite This Article :

Saadouni Saad | Habbani Souad "Modernization of Corporate Taxation in Germany: Enhancing Flexibility, Reducing Bureaucracy, and Embracing Globalization" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-9 | Issue-3, June 2025, pp.1331-1337, URL: https://www.ijtsrd.com/papers/ijtsrd97142.pdf

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Abstract :
This paper examines the recent reform of German corporate taxation introducing an option for partnerships (e.g., OHG, KG, Partnerschaftsgesellschaften) to be taxed as corporations (§1a KStG). The reform aims to enhance the international competitiveness of Germany's business environment, reduce the tax burden, and promote legal form neutrality. Through a qualitative and comparative legal analysis-drawing on German and French tax systems, legislative documents, and policy papers-this study assesses the reform’s practical implications for small and medium-sized enterprises (SMEs) and family businesses. The analysis includes simulated scenarios of compliance costs, fiscal impact, and legal adaptation challenges. The study finds that while the reform improves tax flexibility and international alignment, its success hinges on administrative simplification and tailored support for SMEs. Recommendations include further harmonization of transformation tax rules (UmwStG), broader international scope, and continuous impact monitoring.

Keywords :
Germany, Tax, Europan, Economic, KStG, Reform, Gesetz

Publication Details:

Unique Identification Number : IJTSRD97142

Published In : Volume-9 | Issue-3, June 2025

Page Number(s) : 1331-1337

Publisher Name : IJTSRD | www.ijtsrd.com | E-ISSN 2456-6470

Copyright © 2019 by author(s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0)

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