On April 12, 2023, Germany’s Federal Ministry of Finance and the Federal Ministry of Justice published the draft bill for a law on the financing of future-proof investments (Zukunftsfinanzierungsgesetz – ZuFinG-E).

This proposed legislation seeks to enhance the performance of the German capital market and bolster the appeal of Germany as a financial hub within the European financial center. It aims to achieve these goals by introducing numerous amendments to company, financial market and tax laws.

One significant aspect of the draft bill is the establishment of improved tax framework conditions to facilitate employee equity participation. This measure intends to make it easier for young companies to attract talented employees and maintain their competitiveness in the global talent market.

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