On 21 November 2025, the Federal Council issued its recommendation (BR-Drs. 550/25) on the draft Location Promotion Act. Several supplementary tax changes were also proposed.  

One of the key changes concerns the immediate depreciation of low-value assets (GWG): the value limit is being raised from the previous €800 to €1,200 (Section 6 (2) sentence 1 EStG).  

At the same time, the current collective item regulation (Section 6 (2a) EStG) is to be abolished from 2026.   

What does this mean for businesses? 

• Direct depreciation: Purchases up to €1,200 can now be deducted in full as business expenses in the year of purchase. 

• Less bureaucracy: The time-consuming creation and management of collective items is completely eliminated. 

• Positive liquidity effects: Small and medium-sized enterprises (SMEs) in particular benefit from improved investment capacity. 

Why this change? 

The adjustment takes inflation into account and brings the GWG limit back to its historical starting level. In doing so, the legislature is following the recommendations of the expert commission on “Citizen-Oriented Income Tax”. The aim is to simplify tax law and reduce bureaucratic hurdles. 

What is omitted? 

The previous pool depreciation for assets between €250 and €1,000 over five years will be abolished. This regulation was prone to errors and caused a high audit burden. The new uniform solution will make tax law much clearer. 

Important note 

It is currently unclear whether the above-mentioned proposed amendments will be incorporated into the law by the Bundesrat. The second and third readings in the Bundestag and final approval by the Bundesrat are still pending. 
The increase in the Low-value assets limit has already been the subject of several legislative proposals in the past and has not yet been finally implemented.

Our service for you 

To enable you to make the most of the new tax regulations, we will help you adjust the relevant limits and parameters in your asset accounting as soon as the change has been passed by the legislature. This will ensure that your accounting remains legally compliant and efficient at all times. 

Contact us now and secure your consultation! 
We help you adapt your FXM asset accounting to the new requirements – quickly, easily and professionally.