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Germany Today

German news in English

Thursday, October 17, 2024

Germany's Tax Incentives for Foreign Workers Face Backlash

Published: 2024-07-23

Germany is facing criticism over its proposed tax incentives aimed at attracting foreign skilled workers.

The government plans to allow new arrivals to pay reduced taxes for the first three years, with rates of 30%, 20%, and 10% on their gross income.

However, this initiative has sparked backlash from employers, who argue it undermines tax fairness and could disrupt workplace harmony.

Rainer Dulger, president of the German Employers' Association, emphasized that the focus should be on improving conditions for all workers, such as better childcare and housing, rather than creating disparities.

Critics also suggest that Germany should simplify its immigration processes and recognize foreign qualifications more efficiently to attract talent effectively.