Germany Corporate Tax Rate: 2026 Breakdown Explained
Detailed analysis of Germany's corporate tax rates for 2026, including key percentages and exemptions by region.
The exact change
The Wachstumschancengesetz (Growth Opportunities Act) raised the maximum assessment base from 4 million EUR to 6 million EUR per year (yielding a maximum credit of 1.5 million EUR). Austria's corporate tax rate phased down from 25% (2022) to 24% (2023) to 22.5% (2024 onward).
The Wachstumschancengesetz (Growth Opportunities Act), effective March 2024, raised the maximum assessment base from 4 million EUR to 10 million EUR per year (yielding a maximum credit of 2.5 million EUR, with higher effective rates available for qualifying SMEs), and a further increase to a 12 million EUR assessment base applies to projects starting from 1 January 2026. Austria's corporate tax rate phased down from 25% (2022) to 24% (2023) to 23% (2024 onward).
Suggested change
Removed fabricated "our analysts" authority-voice language and corrected the R&D tax credit cap, the CFC (controlled foreign corporation) threshold, the Austria tax phase-down figure, and nuanced the framing around the 29.8% effective tax rate figure. The dividend withholding tax table was also corrected later, raising the rate from 10% to 15% following a December 2024 Presidential Decree.
Why this is better
The R&D tax credit cap increase was understated (should be a 10 million to 12 million EUR base, not 6 million) and Austria's final phased-down corporate tax rate was misstated as 22.5% instead of the correct 23%.
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