During the Council of Ministers held on August 27, 2008, the government adopted a bill on tax incentives in favor of the participation of employees to their company's capital. This bill is based on the agreement reached by the Grand Coalition in power (SPD, CDU-CSU) on April 21 (see our article No. 080332). The law should come into force on April 1, 2009 with retroactive effect on January 1, 2009. (Ref. 080642)
At present, only 2% of German companies show employee equity participation, according to a study carried out by the German Labor Market and Employment Research Institute (IAB). This rate amounts to 9% for employee profit sharing. In the mid-term, with this new series of measures, the government is hoping that the number of employees enjoying financial participation will go from 2 to 3 million. The bill presented by the government is aimed at giving financial incentives for these practices. Thes
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