Expected tax changes from the new government programme

The new government programme for the period 2017 to 2022 is around 180 pages long and covers very general topics such as "State and Europe", "Future and Society" or "Location and Sustainability". Planned Tax changes are part of the entire programme scattered. The following outlines key points, which, as expected, currently amount to more Objectives as it comes to concrete measures. What is striking is that apparently quite a few Legislative change from the recent past again Undo to be done.

Tax incentives relating to property

Here are various measures planned, which, for example, the Shortening of the distribution period open 10 years (currently 15 years) for Refurbishment as provided for in the case of eligible manufacturer expenses. The government programme includes the General shortening of depreciation periods for non-privileged manufacturing expenses, whereby a distinction is made between Renovation and New build This should be distinguished. Presumably in line with the "craftsman bonus", Housing construction directive and housing renovation costs in the future with a Investment allowance be funded. To so-called "Lease purchase models"to make it more attractive, is ultimately planned, the Input tax adjustment period from 20 to 10 years shorten.

"Family Bonus Plus"

There are to be changes or simplifications to tax support for children. The so-called "Family Bonus Plus" is as Deduction In the event of. €1,500 per child per year designed, which is to be provided until the age of 18, provided that there is a claim for family allowance and the child in Austria lives. The Family Bonus Plus is not subject to negative taxation, however. As compensation, the Child allowance as well as the tax deductibility of Childcare costs in the future to cease to exist, to be omitted, to lapse, to become obsolete.

Simplification of Tax Laws - Income Tax Act 2020

With the aim of simplifying the Austrian Income Tax Act, various changes are planned, which in the new Income Tax Act 2020 should come into force (the EStG 1988 currently applies, albeit frequently amended). Thus, the introduction of a "Consolidated balance sheet" in the space, through which the distinction between § 4 Paragraph 1 and § 5 Paragraph 1 balance sheet preparers should be abolished (only a tax-based business asset comparison!). Planned are the Reduction the number of Sources of income and a Simplification for calculating profits for partnerships. Furthermore, it should Taxation legally form-neutral to be. The new government also plans a Tariff reform and a simplification of "other benefits" through a uniform flat-rate tax. Regarding the preferential taxation of the 13th and 14th salary ("Christmas bonus and holiday pay"will indeed Nothing change. Finally, there is still the Abolition of cold progression an declared objective, which is to be achieved through the automatic adjustment of the threshold amounts for the individual progression levels based on the previous year's inflation.

Changes in Corporate Tax Law

Besides the very generally formulated goal of Reduction of corporation tax at an attractive level, which contributes to sustainable investment in Austria, in this area also stands the Undo youngest Changes to legislation in the foreground. This ranges from reducing the VAT rate on overnight stays to 10% (from 13%) to going back to square one with the Deposit refund Pursuant to Section 4(12) of the EStG, the position prior to the 2015/16 tax reform is to be reinstated here. Furthermore, it is intended, for example, in the case of Stamp duty land tax to a Increase tax-free allowance at Business transfers within the family (the current operating allowance is €900,000). In International tax law should it finally lead to changes in the "digital operational unit" come, for which however negotiations at a bilateral level (double taxation agreements) or at an EU level will be necessary. The core intention behind the digital permanent establishment is the Tax law on the profits of digital business models due to from significant digital presence - even if the company lacks a physical presence (in Austria).

Administrative changes - particularly concerning payroll

By combining and Harmonisations the new government expects simplifications and Cost savings. are intended, for example Harmonisation of contribution bases and the creation of a unified employer levy (which will then include the employment allowance, training levy, employer's share of social security contributions, and municipal tax). Instead of the current practice of approving several tax amendment acts per year (keyword spring and autumn legislation), in future, comparable to Germany, a Annual Tax Law foreseen.

Tax audit on request and expansion of „Advance Ruling“

In the sense of greater legal certainty should companies be able to request audits themselves. The Information notice gem. § 118 BAO ("Advance Ruling") has been providing greater legal certainty since its introduction, as the tax consequences for not-yet-realised circumstances can be clarified with the tax authorities in advance. Thematically, a substantive Expansion (in addition to group taxation, corporate reorganisations and transfer pricing) upon International tax law matters as well as of Value Added Tax law foreseen. Furthermore, it should lead to a faster resolution by the tax authorities.

The Legislative process remains of course still to wait. We will inform you about further changes.

Image: © Markus Bormann - Fotolia