Extensive tax reform planned

For the years 2020 to 2023 An extensive tax reform is planned in Austria. The first part of the planned measures is as follows: "Tax Reform Act I 2019/20" already as Assessment draft Before. The following should Selected aspects The first changes are expected to take effect as early as 2020. The further legislative process remains to be seen, not least due to the upcoming Re-election to the National Council.

Wage cut in income tax

An essential element of the tax reform is a Exemption from income tax (and therefore also in the case of income tax) by Reduction of the tax rate His. In the first phase starting in 2021, it is intended to increase the entry tax rate for income components between €11,000 and €18,000 to 20% reduce (from 25%). From 2022, the tax rate for income components between €18,000 and €31,000 shall be 30% (currently 35%) and for income components between €31,000 and €60,000 at 40% (currently 42%) will be reduced. The Top tax rate of 55% to be indefinite Retain become.

Increase in GWGs from €400 to €800 (later 1,000 €)

The limit for the number of people that has been in effect for almost 40 years Immediately write off from low-value commercial goods (GWG) should be from 400 € at 800 € In addition to investment incentives, there will also be simplifications, as the need to maintain an inventory of assets could be reduced. Starting in 2021 the border at GWGs even raised to €1,000 become.

Increase in the small business threshold and additional lump-sum calculation

The false exemption from the sales tax in the form of the so-called Small business exemption from currently €30,000 (net turnover limit) to the Union-wide maximum amount of 35.000 € raised will be. For taxpayers who remain under this limit in terms of sales tax, a Simplified lump-sum pricing in the Income tax (in the case of self-employed income or income from a business activity) Planned. However, in addition to managing directors and supervisory board members, foundation boards are also excluded from this special lump sum. The lump sum expenses are basically determined based on only three parameters investigated. In addition to the amount of sales, these are the Industry and the question of whether the Compulsory insurance contributions have been fully completed or not. Due to the industry, the project will be carried out Service businesses one lower lump-sum spending rate Application, as such businesses typically have a lower cost burden relative to revenue. In detail, the following combinations result: (Expenses)Flat rate % in revenue.

In the interest of simplification, in addition to the standard operating expenses no further operating expenses will be taken into account, however, the Tax-free allowance Therefore, under such conditions, neither a goods receipt book nor an asset ledger are necessary for profit determination. Should the €35,000 Sales limit if the annual turnover is slightly exceeded and the sales do not exceed €40,000, then this exceeding unproblematic, Provided that the maximum amount of €35,000 was not already exceeded in the previous year. Under certain conditions, the application of the lump-sum system and the use of the tolerance regime can again occur after twice exceeding the limit and the elimination of the lump-sum system.

The EStG 2020 as a future music?

The situation remains tense Simplification and modernization of the out-of-date Income Tax Act ("EStG 2020"). With the aim of moving towards Consolidated balance sheet There should be some harmonization of the method of depreciation between corporate law and tax law. Furthermore, the possibility of a different accounting year is envisaged for all consolidators, even the tax recognition from generalized Valuation adjustments and Reservations. Finally, as part of the EStG 2020, there will also be a summary (of a type of income) of self-employed income with that from business operations.

Increase in the basic tax exemption to €100,000

The Basis for calculating the basic exemption from 30,000 € to up to €100,000 be increased, and thus relieve companies financially as well as administratively. Only from a profit of €100,000 onwards are corresponding Investments must be made in order to claim the profit exemption amount in addition.

Increase in advertising costs allowance

The increase in the Advertising cost flat-rate from currently 132 € per year at 300 € per year From 2021 onwards, it is intended to bring financial and administrative relief to taxpayers, since in the future it will often be possible to claim tax refunds. no employee contribution more would probably be necessary.

Community law compliance at the SME financing company

The regulations regarding Medium-sized enterprise financing company (MiFiG) has been amended several times to make it easier for small and medium-sized companies to comply with the regulations. Access to equity capital - from the critical initial phase through the growth phase to eventual market entry - to facilitate (see also KI 04/17). Now a Adaptation of the regulations This is intended insofar as the tax benefit for the investors is to be limited to 75% of the distribution amount of a MiFiG, since the MiFiG itself can only claim tax benefits in the financing area that amounts to at least 75% of the equity. This will ensure that the benefits of the European Commission submitted Requirements of a grant-related nature (the MiFiG regime is subject to the EU state aid notification requirement as risk capital aid) fulfilled In addition, it is clarified that a company (also) cannot receive more than €15 million in total from several MiFiGs.

Reduction of the corporate tax rate

At least as in the Lecture to the Council of Ministers announced, it is said that the Corporation tax from 25% currently, to 2022 23% and from 2023 onwards 21% lowered will become. With this, Austria would be joining the EU average approach. Taking into account 27.5 KWh, the Total tax burden from currently 45.63% to 42,73% from 2023 onwards.

Changes in tax on sales

In addition to increasing the small business threshold, further changes to the value-added tax are planned. Not least due to ecological considerations In the future, books, newspapers and magazines are also to be available at a reduced price. Tax rate of 10% are subject to, if they are in in electronic form are available. In a similar direction goes it for Electric bicycles (e.g. e-bikes, electric motorcycles) - for these, similar to electric cars, the Possibility for pre-tax deduction in the case of entrepreneurial use. This could provide an incentive for companies to provide employees with more electric bicycles – in the event of a Private use through the servants should no fiscal relevance fall out of focus. In general, the planned tax reform includes several measures in the environmental field with the aim of implementing the climate and energy strategy for Austria.. Finally, there are Simplifications and standardizations (in relation to other Member States) at Row stores, intra-community deliveries and regarding the regulations regarding Consignment warehouses planned.

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