What Is Important When Introducing Tax Rebates for New Immigrants

Abstract

"The German Government’s growth initiative aims to strengthen immigration into the labour market. In the first three years, 30 %, 20 % and 10 % of the gross income of newly arrived skilled workers will be tax-free. The target group has not yet been precisely defined, but it is likely to be workers with professional and university qualifications under the Residence Act. This Act focuses on the immigration of skilled workers, including the EU Blue Card and the regulations for IT specialists. Under certain conditions, tax rebates can trigger additional migration. However, there are also disadvantageous deadweight and distributional effects. The aim must be to avoid a race to the bottom between international tax rates." (Author's abstract, IAB-Doku) ((en))

Cite article

Brücker, H., Kosyakova, Y. & Weber, E. (2024): Steuerrabatt für neu Zugewanderte: Was ist zu erwarten, worauf kommt es an? In: Wirtschaftsdienst, Vol. 104, No. 9, p. 631-635. DOI:10.2478/wd-2024-0163