Coronavirus: UPDATE: Announced and planned relief measures

[As of 16.06.2020]

In the course of the government retreat on 15 and 16 June, the following measures were announced:

To support particularly affected businesses:

Profit and Loss Distribution

• Temporary possibility of loss carryback, meaning a one-off carryback of losses from 2020 to 2019 and, under certain conditions, to 2018.
  

Overhead cost allowance

• Extension of 6 months and adjustment of revenue limits.
  

Reduction of VAT for the catering and cultural sectors

• A reduced VAT rate of 5 % on food and drink in the hospitality sector, as well as on transactions in the arts, culture and media sectors.
  

Credit moratorium

• For sectors particularly affected, such as the catering, tourism, and tour operator industries, relief will be provided through a credit moratorium. The state will temporarily cover loan repayments until installments can be settled at a later date.
  

Extension of tax deferrals until 15 January 2021.

To promote investment:

Investment premium

• For assets acquired between 1 September 2020 and 28 February 2021, there is an investment premium of 7 %, with the exception of investments that are harmful to the climate.
• For goods relating to digitalisation, environmental sustainability and health/life sciences, the premium rate is 14 %.
  

Degressive depreciation

• From 1 July 2020, investments can be depreciated at a rate of 30 % in the first year.
  

Strengthening equity ("Equity Fund")

• A concept for increasing the equity ratio for SMEs is announced for the next few weeks.
  

Additional investments

• Refurbishment Offensive: Tax incentives/subsidies for investment in thermal refurbishment, boiler replacement for commercial and private entities, removal of legal barriers in housing and tenancy law.
• Expansion of renewable energy / "One Million Roofs" programme: Expansion of solar thermal systems, community energy systems, expansion and decarbonisation of local and district heating, promotion of small-scale systems.
• "Federal Building Investment Programme Investment in the infrastructure of existing buildings, as well as the development of new, modern, and environmentally friendly buildings.
• Investment in climate-friendly innovations & industries: Increase in investment programmes with a positive effect on the environment and climate, as well as in European research initiatives such as Call Showcase Region Energy, IPCEI Batteries, and IPCEI Hydrogen.
• Incentive for repair services: Reduction of VAT on repair services to 13 %.
• Broadband rollout second broadband billion to promote digital infrastructure.
  

Startup Package/Deregulation Package

• New legal form "Austrian Limited": With uncomplicated company formation, low start-up capital, and the introduction of English for important official procedures.
• Strengthening growth financing Loss offsetting possibilities and tax deductibility of growth financing.
• Deregulation measures Employee participation, Once-Only and implementation of the grace period.
  

"Digitalisation and Education Masterplan"

• 8-Point Plan Digital School Portal, unification of existing platforms, teacher training, Eduthek (curriculum-oriented), quality seal for learning apps, expansion of school basic IT infrastructure, digital devices for pupils and teachers.

To provide further relief:

Reduction of the first tax bracket for wages and income tax

• Retroactively from 1 January 2020 with reimbursement for already taxed salaries by September at the latest.
  

Increase in social security reimbursement (negative tax)

• With retrospective effect from 01.01.2020, increase up to €100.
  

Unemployment benefit and child bonus

• A one-off additional €450 on top of unemployment benefit.
• For a child for whom family allowance is received, there is a bonus of €360.

Source https://news.wko.at/news/oesterreich/Massnahmenpaket-fuer-rot-weiss-roten-Weg-aus-der-Krise.html

Image: © Adobe Stock - marog-pixcells