Berlin Promotion Act
| Basic data | |
|---|---|
| Title: | Law to promote the Berlin economy |
| Short title: | Berlin Promotion Act 1990 |
| Previous title: | Law to promote the economy of Greater Berlin (West) |
| Abbreviation: | BerlinFG 1990 |
| Type: | Federal law |
| Scope: | Federal Republic of Germany |
| Issued on the basis of: | Art. 105 para. 2 GG |
| Legal matter: | Tax law , subsidy law |
| References : | 610-6-5 |
| Original version from: | March 7, 1950 ( Federal Law Gazette I p. 41 ) |
| Entry into force on: | March 10, 1950 |
| New announcement from: | February 2, 1990 ( Federal Law Gazette I p. 173 ) |
| Last change by: |
Art. 18 G of December 12, 2019 ( Federal Law Gazette I p. 2652, 2699 ) |
| Effective date of the last change: |
January 1, 2024 (Art. 60 G of December 12, 2019) |
| GESTA : | G026 |
| Please note the note on the applicable legal version. | |
The Berlin Promotion Act is a federal law that provides for various tax breaks and investment grants for the economy of the State of Berlin . This also includes the tax breaks for employees in Berlin (West), which are dealt with in Articles IV and V of the Act .
The Berlin Funding Act was amended several times and provided with additional or changed funding instruments.
Title changes
The Berlin Promotion Act was published several times under changing legal titles. It originally came into force on March 10, 1950 as a law to promote the economy of Greater Berlin (West) . In the following year, the title was changed to the law to promote the economy of Berlin (West) . From 1964 the title was then Berlin Aid Act . The current long and short title was introduced in 1970.
Historical development
The attempt by the Soviet Union , West Berlin by the Berlin blockade the powers-Four status to escape and partly SBZ to make it foundered on the opposition of the Berlin and the Western Allies . The Berlin Airlift ensured that the city was supplied with supplies. Josef Stalin had to break off the blockade in May 1949.
The Berlin economy was severely impaired in its competitiveness by the blockade and the subsequent island location . Therefore, the federal government decided to benefit Berlin's economy through guarantees and, above all, through sales tax subsidies. Sales tax was reduced by three percentage points.
Due to the development that occurred in West Berlin after the construction of the Berlin Wall , it was urgently necessary to significantly expand the funding measure for Berlin (West) in certain areas before the deadline specified in Section 15 (2) BHG 1959 had expired. Especially in the recruitment of workers from the Federal Republic , a new emphasis must be placed to promote, largely offset as quickly as possible the consequences of barricades set up and. The substantial funds required for this were made through a cut in other tax breaks, including tax exemptions from sales tax .
General tax and other advantages according to the BerlinFG (status 1983):
- Sales preference (discount) of 3 to 10 percent for the delivery of products from Berlin to West Germany
- The demand in West Germany for Berlin products is promoted by a sales preference of 4.2 percent
- Every employee in Berlin receives a tax-free plus of 8 percent of their gross earnings ( Berlin allowance )
- In addition to the national child benefit (up to 1990: DM 50.00 per month), there is an additional allowance of DM 49.50 for each child
- 30 percent reduction in income tax
- Corporate tax reduction of up to 22.5 percent
- Trade tax with a rate of 200 percent
- In addition, for immigrant workers, if the economy required them, the travel costs for the journey, home journeys, the bridging allowance, moving costs and an installation allowance were granted.
General investment subsidies according to the BerlinFG (status 1983):
- Companies and the self-employed can be granted a tax-free allowance of 25 percent depending on the type of investment
- When investing in research and development , allowances of up to 40 percent can be granted
- Investments by companies in Berlin can write off up to 75 percent of the acquisition and production costs ahead of time, either immediately in one amount or evenly or unevenly over five years.
- Support through ERP investment loans and low-interest loans according to § 16 BerlinFG.
Web links
Individual evidence
- ↑ Law to promote the economy of Greater Berlin (West) ( Federal Law Gazette No. 11 )
- ↑ § 1 No. 1 Act of July 21, 1951 ( Federal Law Gazette I p. 462 ); Validity from July 24, 1951.
- ↑ Art. 3 Law of July 29, 1964 ( Federal Law Gazette I, pp. 534, 536 ); Validity from September 1, 1964.
- ↑ Art. 1 Law of June 23, 1970 ( Federal Law Gazette I p. 826 ); Validity from June 27, 1970.
