The latest Mannheim Tax Index shows that Germany is falling further behind in international tax competition for large companies and now has one of the highest corporate tax burdens in an international comparison. At the same time, the once strong German economy is losing momentum: declining growth rates, rising production costs and skills shortages are slowing innovation and competitiveness. In this challenging environment, tax measures are key to keeping Germany attractive for SMEs, encouraging investment and securing long-term competitiveness.

The aim of this short expertise is therefore to assess the tax competitiveness of Germany as an investment location from the perspective of small and medium-sized enterprises (SMEs).

Specifically, the following research questions are analysed

• What tax incentives does Germany offer SMEs compared to other countries?
  
  
• Which existing international tax incentives are particularly attractive?
  
  
• Is Germany an attractive location for SMEs and how could Germany's tax attractiveness for SMEs be increased?