Business News of Friday, 26 July 2024

Source: www.legit.ng

Germany to lower taxes for Nigerian, other skilled workers, offers generous tax rebate

Tax reduction for Nigerians Tax reduction for Nigerians

The German government is considering lowering taxes for foreign skilled workers who want to take up jobs in the country.

Tax cuts will range from 30 to 10%

The move comes amid an effort to attract foreign-qualified professionals into Germany under its growth initiative, an effort by the government to partly exempt newly arrived foreign workers from taxes for the first three years.

The German Authorities said this tax rebate is crucial as the country faces shortages in various sectors. The country’s Federal Minister of Finance, Christian Lindner, disclosed that the rebate will apply during the first three years of employment, pending approval from official implementation.

Politicians and unionists oppose the move

Reports say Lindner explained that the rebates would range between 30%, 20%, and 10% without providing further details on who is eligible for the larger or smaller tax rebates or the criteria.

He said:

“We are creating a tax rebate for foreign professionals during their first three years in Germany. There will be rebates of 30%, 20% and 10% for those people who come here as qualified specialists”.

“The measure needs to be approved before it becomes effective. The authorities said that they intend to revise the move after five years.”

The move has received mixed reactions, with foreign workers welcoming the proposed tax cuts while politicians and trade unions criticize the initiative.

According to reports, politicians and unionists say the policy discriminates against domestic workers.