Measures before the end of 2016 - For entrepreneurs

In contrast to Tax Reform 2015/16 There are no fundamental changes for 2017. Nevertheless, the upcoming turn of the year should also be taken as an opportunity to save or create the conditions for saving more tax through a few measures.

Apply for group taxation

With corporations, the establishment of a Business group the possibility to offset profits and losses of the included companies. This offers, among other things significant positive tax effects. The prerequisite is the required financial link (a shareholding of more than 50% and a majority of voting rights) since the start of the financial year, as well as a corresponding declaration submitted to the tax office Group application. For all capital companies with the calendar year as their financial year (i.e. balance sheet date 31.12.), the group application must be submitted by no later than 31.12.2016 to incorporate so that it still has an effect for the 2016 Tax Assessment unfolds. The same applies to inclusion in an existing corporate group (for example, because a new shareholding was acquired on 1 January 2016).

Research funding - research premium

The research premium of 12% is as Tax credit designed and therefore applies in both profit and loss-making years. Furthermore, research expenses are tax-deductible regardless of whether the research premium is claimed. The for the premium relevant research expenditure can Personnel and material expenses for R&D activities, overhead costs, financing costs and investments directly serving research and development (including the acquisition of land). The research premium is for the Self-research this must be in Inland following) by amount unlimited. To claim the research premium, a positive assessment from FFG (Requirement via Finanz-Online) required. In contrast, the Basis for remuneration for contract research The prerequisite, in turn, is that it is a domestic contractor – for the client at 1,000,000 € limited. Submission of an FFG expert opinion is not required for contract research.

Tax-free allowance

The profit allowance is available to all natural persons irrespective of the profit determination method and amounts to up to 13% of the profit. Up to a profit of €30,000, every taxpayer is entitled without proof one Tax-free allowance from 13% (thus €3,900); corresponding investments are required to claim a higher tax-free allowance. Sponsored investments encompass fundamentally Tangible non-current assets or housing development bonds (convertible bonds for housing development promotion), no longer (at least temporarily) but securities such as bonds. The useful life or. Retention period is 4 years each. Securities acquired in previous years remain subject to subsequent taxation for the minimum holding period of 4 years. If residential building bonds allocated to the business are redeemed before the expiry of 4 years, a replacement acquisition can be made through real investments or, within 2 months, through a replacement acquisition of residential building bonds. If a Flat-rate operating expenses stands only The Tax-free allowance to. The tax-free allowance reduces also the GSVG assessment basis and therefore next to The Tax burden Also die Social security contributions. The Tax-free allowance for profits of €175,000 or more reduced and amounts to 7% for amounts between €175,000 and €350,000, between €350,000 and €580,000, only 4.5%, and for the portion of profits exceeding that amount cancelled The Allowance in full. The tax-free allowance therefore maximal 45,350€.

Advance payments (half-year depreciation) and timing of payment/receipt for income and expenditure calculation software

For investments that after dem 30.6.2016 If the purchase is made, half the annual depreciation can be claimed in the second half of the year, regardless of the date of purchase. The Preferring investments Therefore, a tax advantage can be brought by December 2016 at the latest. Low-value assets (up to €400) can be paid immediately in full can be discontinued. E-A calculators can fundamentally, by utilising the inflow/outflow principle, a temporary relocation to tax liability. However, for expenses listed in § 19 (3) of the EStG (e.g. consulting, rental, sales, administrative, interest costs etc.), only a one-year advance payment Tax deductible! Regularly recurring income or expenses that are due at the end of the year are to be allocated to the calendar year to which they economically belong if they are made within 15 days before or after 31st December. So-called „abandoned claims“, which are paid at a later date only at the creditor’s request, are nevertheless regarded as having already been received (in the previous year).

Compliance with the turnover threshold for small businesses

VAT exemption (without deduction of input tax) is only applicable to a Annual net sales from up to €30,000 possible. Entrepreneurs who are at risk of exceeding this limit in 2016 should – if they are subject to taxation on actual income (e.g. as is the case for many self-employed people) – the Payment received if possible only 2017 receive. Otherwise, the other revenues already received will also be subject to VAT (retroactively).

GSVG exemption

Small business owner (Annual turnover under €30,000, income under €4,988.64) can be a GSVG exemption for 2016 until 31 December 2016 apply. Eligible Young entrepreneur (max. 12 months GSVG compulsory insurance in the last 5 years), persons aged 60 or over (statutory retirement age) or persons over 57 if the aforementioned limits have not been exceeded in the last 5 years.

Prepayment of GSVG contributions

At Income-Expense Calculator a Prepayment of GSVG contributions then recognised if their amount corresponds to the expected back payment for the relevant year. If you expect a back payment, you can perform a Voluntary prepayment reduce or smooth the profit and thus potentially disadvantageous Avoid progression leaps.

Retention obligations

With 31.12.16 fundamentally ends 7-year retention obligation for business documents for the year 2009. Records which are relevant to a pending tax or other official/court proceedings must also be retained. Records for properties in Advance tax settlement are 12 years to store for a long time. If properties are not exclusively for business purposes and input tax was claimed on the non-business part, the retention obligation is extended under certain conditions to 22 years. The retention obligation for documents in connection with Properties also amounts to 22 years, when renting out for residential purposes or commercial use of the property from 01.04.2012 was initiated. Under no circumstances should documents be destroyed that are relevant to Proof e.g. for product liability, property, inventory, and employment contract law.

Deductibility of donations

Donations from business assets to specific Research institutions and educational institutions serving adult education, as well as universities, can, up to a Maximum amount from 10% be an operating expense for the current financial year's profit. Additionally, and in terms of amount Unlimited Can monetary and in-kind donations related to assistance in disaster situations also be claimed, provided they are for the Advertising serve. Also Donations for charitable causes, animal welfare and volunteer fire brigades are tax-deductible as business expenses. It is sometimes essential that the organisation receiving the donation or the donation collection association is BMF List appears and that the donation was made in 2016 and can be proven. A double consideration a specific donation as a business expense and as a special expense Not possible. It should also be noted that corporate and personal donations combined must not exceed 10% of the total amount of income.

Securities cover pension provisions

To avoid tax Penalty surcharges must by the end of the financial year Securities in the nominal amount of at least 50% of the tax pension reserve amount shown at the end of the previous financial year Operating assets to be present. The presence of corresponding coverage should therefore be checked before the end of the year.

Energy levy refund

The application for Calendar year 2011 must be completed by 31 December 2016 at the latest. Especially for Service company with high energy consumption, which have been excluded from the energy tax rebate since 2011, there is through a ECJ ruling from Summer 2016 again chances of a (retroactive) Refund. Claims should therefore at least be applied for to secure them.

Further requirements due to cash register obligation

With the introduction of Till obligation There have been major innovations, primarily for small and medium-sized enterprises. However, the changes are not yet over, as at the latest from April 2017 the special tills Safety standards which must be met. Above all through cryptographic signature Each bar transaction shall achieve the immutability of the records and thus contribute significantly to protection against manipulation. For the Customers is typically at the QR Code visible on the receipt that the cash register is equipped with a security device. The with the Retrofit onto the Security system connected costs are according to information from the BMF for a „simple“ cash register likely 400 to 1,000 € valued, whereby till solutions based on smartphones and cloud solutions can be cheaper. Besides a Premium from €200 for purchase/conversion are also the Acquisition costs also Business expenses tax-deductible.

Transfer pricing documentation

The recently passed by the Transfer Pricing Documentation Act (VPDG) introduced Standardised Transfer pricing documentation obligations already apply to financial years, which from 1.1.2016 begin. Transfer pricing documentation in accordance with the VPDG must be submitted to the Austrian tax authorities upon request for the tax return for the relevant year within 30 days provided. The new obligation applies to companies if the Sales revenue in each of the two preceding financial years Over €50 million have. It is then fundamentally a Local file for a company in Austria, provided the company has exceeded the turnover threshold. Depending on the structure and size of the group, moreover, one Master file or even a Country-by-Country Report (for consolidated group revenue exceeding €750 million) must be prepared or presented. The required content of the standardised transfer pricing documentation is, by the Austrian legislator, Regulation specified and cover approximately at Local file not only general and financial information of the company, but also the Proof of the arm's length nature of transfer prices for the relevant (cross-border) intragroup transactions. These transactions include, for example, goods transactions, intragroup services, loans, guarantees, licences, etc. Since the preparation of transfer pricing documentation typically involves very high effort If it is connected, work on its creation should start sooner rather than later. Inside The 30-day period Following a request from the tax authorities, the preparation of comprehensive transfer pricing documentation could prove extremely difficult.

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