No advertising costs / operating expenses for gratuitous management

In practice, it is common for many limited liability companies (GmbHs) that Management activity self through or the Shareholder takes place (so-called shareholder-managers). For various reasons, it may be that the shareholder for the business activity carried out by him No separate charge received. Costs associated with management (e.g. travel expenses, computers, office supplies, etc.) borne by the shareholder-manager themselves, in the view of Supreme Administrative Court (GZ 2008/13/0234 of 6.7.2011) not tax-deductible to be done, as there is no source of income associated with the gratuitous activity. The Expenditure in the opinion of the VwGH in connection with the achievement of Investment income and are due to the Final taxation effect the withholding tax on distribution income is also not deductible for this income source.

The realization of Supreme Administrative Court Confirms indirectly also that of the Financial administration So far Negative attitude for the tax assessment of contributions in kind (gratuitous business management, interest-free capital grants, gratuitous provision of real estate in private assets, etc.) by shareholders. The Tax irrelevance provided that neither at the company a fictitious output to be applied still of the shareholder Fictitious income to be taxed.

The instrument of Usage deposit can inter alia Profit shifting die Limited company used. Such structures can be particularly interesting in constellations where in the capital company at distributable Retained earnings still tax-related Loss carry-forwards from previous years. The „Exchange“of a managing director's remuneration for higher distributions can then considerable Tax advantages (a tax burden of 25% under the KESt instead of a tax rate of up to 50% on directors’ remuneration). Furthermore, such arrangements are also suitable, to a certain extent, for a (permissible) Balance sheet policy. By waiving a management fee, the operating result is relieved. Distributions then come from the retained earnings and are only reflected in the profit and loss account as Success-neutral mitigation of retained earnings.

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