The ruling coalition parties in Germany proposed raising the annual tax-free allowance for employee stock ownership in startups from €1,440 ($1,556) to €5,000 ($5,408). Additionally, the coalition has also proposed creating shares with multiple voting rights. The moves aim to create a conducive environment for startups in the nation. - The multiple voting rights amendment is aimed at retaining the influence of startup founders over their company once it has gone public.
- With the increase in tax-free allowance, the nation hopes to provide startups with more leverage to entice and reward employees.
- Other proposed changes include simplifying access to capital markets, strengthening Germany's role as a financial center, and removing barriers to technology.
- The German government is evaluating the feedback from its state authorities and lobby group, aiming to approve the law in the cabinet over the summer.
- Germany's Startup Association has welcomed the changes.
- The Association's CEO Christian Miele added that the "improvements are therefore urgently needed," considering that Germany sits last in stock ownership programs amidst other European nations, which weakens its prominence as a startup location.
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