The property tax reform in Germany was designed to reevaluate property, and, at the same time, to allow for a digitized and thus more efficient property tax law. The deadline for submitting the property tax return, which had already been extended, expired at the end of January. However, a property tax return has not been submitted for 25 percent of real estate property. Companies are also slow in implementing the planned measures in the field of digital transformation. This is documented in the February report of the German Business Panel. Only the legal and tax consulting sector has already completed the planned measures.
So what stands in the way of large-scale implementation and thus faster processing? Prof. Dr. Johannes Voget, holder of the Chair of General Business Administration, Taxation and Finance and co-author of the study, explains “Digitisable property tax law is a cost issue for companies at the current time and can only be realised if there are sufficient corresponding benefits”. Regional differences also play a role, as some federal states apply a different property tax model.
The German Business Panel surveys more than 800 companies monthly on the business situation in Germany and collects data on 1) expected changes in turnover, profits and investments, 2) entrepreneurial decisions, 3) the expected probability of default in the industry and 4) satisfaction with economic policy.