GBP Monitor: German Companies Skeptical about the Bureaucracy Reduction Act – Most Companies Do Not Expect Any Noticeable Relief
Credit: Felix Zeiffer
On 26 September 2024, the Bundestag adopted the Bureaucracy Reduction Act (BEG IV). The law is intended to improve the economic location factors in Germany and promote investments. The key measures include shortening the retention periods for accounting records from ten to eight years, digitizing tax assessments, and reducing reporting and information obligations. In addition, written form requirements will be reduced so that paper signatures are not needed for digitized processes. However, current GBP data shows that 69 percent of the companies in the survey believe that the proposed legislation will only have a minor or very minor impact on their bureaucratic burden. Only ten percent expect a noticeable reduction in their workload.