Update Future Financing Act – Focus on Employee Participation in Germany

By and on May 23, 2023

On April 12, 2023, Germany’s Federal Ministry of Finance and the Federal Ministry of Justice published the draft bill for a law on the financing of future-proof investments (Zukunftsfinanzierungsgesetz – ZuFinG-E).

This proposed legislation seeks to enhance the performance of the German capital market and bolster the appeal of Germany as a financial hub within the European financial center. It aims to achieve these goals by introducing numerous amendments to company, financial market and tax laws.

One significant aspect of the draft bill is the establishment of improved tax framework conditions to facilitate employee equity participation. This measure intends to make it easier for young companies to attract talented employees and maintain their competitiveness in the global talent market.

Read more here.

Florian Schiefer
Dr. Florian Schiefer advises clients on international corporate and group tax law, international tax planning, transaction tax, real estate taxation, and investment taxation. Read Dr. Florian Schiefer's full bio.

Sebastian Bonk
Sebastian Bonk advises companies, investors, founders and management on all aspects of corporate law as well as on national and international M&A transactions. He also regularly advises on venture capital and venture debt financings. He furthermore focuses on advising on management and employee shareholdings as well as on the structuring of equity-based incentive compensation. Read Sebastian Bonk's full bio.




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