Measures before the end of 2017 - For entrepreneurs

Not least due to the recent elections, major tax changes were avoided in 2017. The upcoming year-end should, however, be used as an opportunity, as every year, to save on taxes through a few measures or to create the conditions for doing so.

Apply for group taxation

With corporations, the establishment of a Business group the possibility is created, Wins and losses the companies involved to balance. This sometimes offers 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 31.12.2017 to incorporate so that it still has an effect for the Tax Assessment 2017 unfolds. The same applies to inclusion in an existing company group (for example, because a new stake was acquired on 1 January 2017).

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. For the claiming of the research bonus, the submission of a positive Expert report The FFG (Requirement via FinanzOnline) necessary. In contrast to this, the Basis for remuneration for contract research - This, in turn, presupposes that it is a domestic contractor - with the client at 1,000,000 € limited. The submission of an FFG expert report is not required for commissioned research. From 1.1.2018 will the research premium apply to 14% increased, so that potentially a Timeshift should be considered for research activities in 2018. For "skewed" fiscal years (not a 31.12 year-end), the assessment basis a portion to be assigned to the months of 2017/18.

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. since 2017 in addition to housing bonds again also others Securities such as federal bonds, bank and corporate bonds, or certain investment and real estate funds (provided they are also suitable for covering pension provisions). The useful life or. Retention period is 4 years each. If securities dedicated to operations mature before the expiry of 4 years, then a Replacement purchase through real investments or, in the event of early repayment, a replacement security acquisition is possible within 2 months. Upon utilising 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 30.6.2017 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 at the latest in December 2017, it can therefore bring tax advantages. 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 "Outstanding 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. Since 01.01.2017, for the small business limit certain tax-exempt sales (e.g. from medical practice or as a supervisory board member) no longer taken into account will be. Entrepreneurs who are in danger of exceeding this limit in 2017 should - if for them the Cash basis accounting fee (e.g. for many freelancers) - the Payment received if possible from 2018 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 €5,108.40) can receive a GSVG exemption for 2016 until 31 December 2017 apply. Eligible Young entrepreneur (max. 12 months GSVG obligation in the last 5 years), persons aged 60 or over (standard retirement age) or persons over 57 years of age, 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 31.12.17 fundamentally ends 7-year retention obligation for business documents for the year 2010. 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 begun. 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 to charitable causes, animal welfare and volunteer fire services are tax-deductible as business expenses. One important factor is that the organisation receiving the donation or the fundraising association is, within the BMF List appears and that the donation was made in 2017 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 Company and private donations Together, they must not exceed the maximum total income of 10%.

Securities cover for 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 2012 must be completed by 31.12.2017 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. However, the Treasury continues to resist and has a Judicial review at the Supreme Administrative Court introduced, which in turn a Draft application At ECJ that has been introduced. To secure the claims, appropriate applications should in any case be filed.

Investment growth premium

While the fund for the investment growth premium for SMEs and freelancers has been exhausted since April 2017 (meaning a waiting period for the extension of the programme for 2018 is necessary), it is possible Large company until the end of 2017 still corresponding Applications places. Large company are companies with 250 or more employees, or companies with an annual turnover exceeding €50 million and a balance sheet total exceeding €43 million. Supported are New investments into the Tangible fixed assets inland (excluding vehicles, intangible assets, financial assets or land) in so far as Investment growth (Investment amount exceeding average investment activity over the last three years) at least €500,000 and is a maximum of €10 million. The bonus amounts to 10% of the increase in investment. The important thing is that the Application before carrying out must take place within two years of the grant agreement being issued. Applications can be made to Amazon Web Services (Austria Wirtschaftsservice GmbH) and ÖHT (Austrian Hotel and Tourism Bank) can be applied to.

Image: © Henry Schmitt - Fotolia