Tax changes under the new government programme

Unsurprisingly, the government's programme contains the turquoise-green government also a timetable to a eco-social tax reform. Although burdens are generally expected from this direction, there are also some Relief planned for taxpayers. Selected aspects are presented below – as always remains the further Legislative process to wait.

Reduction in income tax

The Income tax rates are to – starting with the reduction of the entry-level tax rate from 25% to 20% in 2021 – lowered . This means a reduction from 35% to 30% and from 42% to 40%, although further reductions cannot be ruled out, provided that budgetary constraints allow.

Expansion of the profit allowance

The tax credit with a voluntary deduction should be Investment requirement first ab a profit of €100,000 be necessary – up to now, the basic tax-free allowance was sufficient up to a tax base of €30,000.

Reduction of corporation tax

The Corporation tax is to be changed from 25% to 21% be lowered. Additionally, the Abolition The Minimum Corporate Tax for the relief of small and medium-sized enterprises.

Further increase in low-value assets

The exemption limit for „Low-value assets“was with 2020 of €400 increased to €800. Now there is another Increase to €1,000 In planning. The government programme even envisages an increase to €1,500 in the further future, provided that these are consumer goods with a particularly high energy efficiency rating.

Withdrawal from capital gains tax for pension provision

To the (private) Pension provision to support this, the government programme envisages the reintroduction of a Retention period for securities and fund products, after their expiry KESt exemption for Profits is carried out. The intention of pension provision is likely a longer retention period as the long-standing speculative period of 1 year. Furthermore, there is also a capital gains tax exemption for Yields Australia ecological and ethical Investments In conversation.

Far-reaching simplifications planned

The government programme foresees manifold Simplifications before – not least through a Recoding of the Income Tax Act should be increased legal and planning certainty for taxpayers. The planned [...] also points in this direction Consolidation of income types „self-employment income“ and „income from trade or business“. Likewise, the turquoise-green government intends to combine the tax terms „special expenses“ and „extraordinary burdens“ under the term „Deductible private expenses“to merge and simplify. Finally, it should also Taxation of partnerships and the associated determination procedure Simplified and modernised. The commitment to Consolidated balance sheet The harmonisation of accounting regulations according to the UGB and tax law is also found in this government program.

Gentle reform will for „cold progression“.“

This is intended to be a preliminary review of a adequate adjustment the thresholds for progressive tax bands based on previous years' inflation, taking distribution effects into account. Concrete changes so still out of sight. Naturally, it should remain the preferential taxation of the 13th and 14th monthly salary („Holiday and Christmas bonus“remain.

Eco-social tax reform – CO2 emissions, flight ticket tax and the motor vehicle tax in focus

With socio-ecological aspects, the tax reform should also aim to Fighting the climate crisis contribute, while at the same time taking into account Austria's competitiveness. This Target shall in stages be implemented and ideally bring both relief and the Ecological cost truth establish in the tax system (especially the true cost of CO2 emissions, taking into account the economic costs of CO2 emissions as a reference value). In the Air passenger duty are foreseen as a flat-rate fee of €12 per flight ticket. In addition to the Greening of the NoVA (increase in the NoVA as well as revision of the CO2 formula without a cap) are also the eco-friendliness of HGV road charge and the decisive fight against Tank tourism and heavy goods vehicle traffic from abroad declared objectives.

Image: © Markus Bormann - Fotolia