Tax treatment of delayed payments of subsidies by the AMA

In connection with operational inspections carried out by Agrarmarkt Austria (AMA) based on EU legal requirements, some agricultural Operated to delayed payments the uniform operating subsidy, the payments under the Environmental Program (ÖPUL) and the equalization supplement for disadvantaged areas came into effect. Accordingly, the Year 2010 related Grants partly first in the year Paid out in 2011. For those farmers who base their profit on a Income-Expenditure Statement to determine, the rule applies in itself Inflow-drainage principle. The subsidies that were only received in 2011 would therefore – even if they were granted for 2010 – be generally taxable in 2011. However, the tax collection of a grant related to the previous year in the inflow year regularly leads to a packed together Recording of Subsidies of the previous year and subsidies for the current year. This allows for the Progressive effect in total to one Higher tax burden This occurs as if the subsidies are taxed in two different years. In addition to income-expenditure calculators, this fact is also important for the partial lump-sum calculation (revenues are fully recorded; operating expenses are determined lump sum); whereas in the full lump-sum calculation, the tax burden depends only on the unit value and therefore this problem does not exist.

The Financial administration has now responded to this situation and with Information from January 17, 2011 It is clarified that the recipient of the benefit cannot influence the date of payment and therefore for reasons of fiscal efficiency There are no concerns if the Grants in the case of delayed payment, not the calendar year of the inflow, but for tax purposes that calendar year, for which she will be granted, shall be assigned. In this way, it is ensured that the taxpayer will be charged the tax due even if the payment is delayed. no additional tax burden is being created.

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