Measures before year-end 2018 - For Entrepreneurs

The approaching New Year should be an occasion for a Tax check be taken. Because opportunities are regularly found to legally, through targeted measures Saving tax or to create the prerequisites for it.

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. Prerequisites are 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 31.12.2018 to incorporate so that it still has an effect for the 2018 Tax Assessment unfolds. The same applies to inclusion in an existing corporate group (e.g. because a new shareholding was acquired on 1 January 2018).

Research funding - research premium

The research premium of 14% 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 - The prerequisite, in turn, is that it is a domestic contractor - with the client 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, Housing bonds or 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 30.6.2018 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 2018 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).

Replacement acquisitions on capital gains from assets

Natural persons the taxation of Capital gains for at least seven years in Fixed assets held economic assets by (limited) transfer to the acquisition or manufacturing costs of New investments one evade immediate taxation (Tax deferral effect).

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 regulations. The decisive factor for the small business exemption is that the business is operated domestically. Entrepreneurs who are at risk of exceeding this limit in 2018 should, if possible, Completion of service provision in 2019 relocation. Merely relocating the payment receipt is not sufficient to comply with the small business owner threshold.

GSVG exemption

Small business owner (Annual turnover under €30,000, income under €5,256.60) can be exempt from GSVG for 2018 up to 31 December 2018 apply. Eligible Young entrepreneur (Max. 12 months’ compulsory insurance under the GSVG within the last 5 years), persons aged 60 years or over (normal retirement age) or persons over 57 years if the aforementioned limits have not been exceeded in the last 5 years. Exemption can also be applied for while receiving child-rearing allowance or if there is partial insurance during child-rearing. In this regard, a monthly limit of €438.05 or monthly revenue of €2,500 applies.

Prepayment of GSVG contributions

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

Retention obligations

With 31.12.18 fundamentally ends 7-year retention obligation for business documents for the year 2011. 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 2018 and can be proven. An 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 2013 must be completed by 31.12.2018 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.

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