Tax incentives planned for foreign skilled workers – 2024-07-12 03:34:13

by times news cr

2024-07-12 03:34:13

The budget negotiations between government representatives were not just about money. One result: foreign skilled workers should pay less taxes in the first few years.

In their negotiations on the 2025 federal budget, Chancellor Olaf Scholz (SPD), Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) also agreed on measures to combat the labor shortage. They want to reduce the bureaucratic hurdles for refugees to take up work and accommodate foreign skilled workers with their income tax in the first few years after their arrival.

The federal government’s so-called growth initiative provides that “newly immigrated skilled workers can exempt 30, 20 and 10 percent of their gross wages from taxes in the first three years.” A lower and upper limit for the gross wage will be defined for this exemption. The effect of this measure will be examined after five years.

In order to improve the chances of refugees finding work, the federal government will introduce a “presumption of approval” when the local immigration authorities issue a work permit. This means that the permit is deemed to have been granted if the immigration authorities do not inform the applicant of a different decision within two weeks after involving the Federal Employment Agency.

Habeck says it is about reversing the authorization authority of the immigration authorities. In future, the following should apply: “If they do not object after 14 days, then the work of foreigners is considered approved.”

If more refugees and other foreigners could be integrated into the labor market, this would be a “key to more growth,” emphasizes Habeck. He often meets master craftsmen who tell him they want to hire someone, but fail due to bureaucratic obstacles.

“If refugees can find work more quickly, that is only to be welcomed,” said SPD interior politician Hakan Demir. The traffic light coalition has already decided on reforms to achieve this. For example, it is now generally the case that asylum seekers and tolerated persons can now work after six months instead of nine.

You may also like

Leave a Comment