Tax measures at the turn of the year - For entrepreneurs

Tax-free allowance on investment gains

The FBiG as an investment incentive for E-A calculators can be used not only for physical assets acquired or manufactured during the year, but also for purchases of suitable equipment at the last minute. Securities This is often advantageous, as the expected profit is regularly more easily estimated towards the end of the year. Suitable securities are, for example,. Bonds from Austrian or EU/EEA companies (value of output < = 90% of the nominal value) or equivalent Bond funds. The maximum benefit is 10% of the winnings, at most but 100.000 €. The retention period for securities is four years, as is the case for physical assets. If these deadlines are not met, early withdrawal of securities can only be achieved by investing in corresponding physical assets. Prevents immediate re-calculation will be (No longer by purchasing securities - see Client Information 01/2008). The exemption amount must be stated in the investment prospectus accordingly, or the securities must be included in a separate list. If the exemption amount is not stated in the investment prospectus, the securities must be included in a separate list. Basic lump-sum payment Used, in contrast to certain generalized occupational groups no FBiG possible (see Client Info 08/2008)!

Taxation of retained earnings

Natural persons with profit calculation by Assets comparison (applies to Also for Freelancers) can increase their equity up to a maximum of €100,000 with the ½ Average tax rate (DSS) promotes tax incentives – this corresponds to a tax savings of up to €25,000. In the case of a reduction in equity (through withdrawals) within the next seven years, there is generally a Tax recovery with the ½ DSS used for the benefit. If the Equity reduction in one Loss year, Therefore, there is a Reconciliation option Between the amount of the retrospective tax adjustment and the loss. When making the decision, it should be taken into account that such a loss can be offset by subsequent gains, and this may result in a higher tax savings. It is also possible to achieve a higher tax savings by making appropriate Operating deposits (e.g. for the payment of operating debts) to prevent double taxation. The taxation of profits not remitted to the state and the FBiG are mutually exclusive!

Apply for group taxation

For corporations, forming a Business group the possibility to offset profits and losses of the included companies. This offers, among other things significant positive tax effects. The prerequisite is the required financial connection (capital contribution of more than 50% and majority of voting rights) since the beginning of the business year. Likewise, a corresponding Group application to be submitted to the tax office. For all companies with a calendar year as a fiscal year (i.e., balance sheet date 31.12.), the group application must be submitted by at the latest 31.12.08 to be included so that it still has effect for the 2008 tax year. The same applies to being included in an existing corporate group (for example because a new stake was acquired on 1 January 2008).

Research allowance/research premium/contract research

For economically valuable inventions or within the framework of the broadly interpreted research concept as defined in the Frascati Manual, 25% research expenses are claimed as fictitious operating expenses. According to the principles of economically valuable inventions, they are even, in some cases, deductible. 35% possible. Instead of in-house research, you can also use Contract Research 25% of a maximum of €100,000 per year as a business expense. Alternatively to the fictitious business expenses, there is the possibility of claiming a Research premium In the event of. 8% (Tax credit) – the premium can be advantageous, for example, in loss-making situations and is always better for limited companies.

Advance payments (half-year depreciation) and timing of payment/receipt for income and expenditure calculation software

For investments that after dem 30 June 2008 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 Therefore, as of December 2008, tax benefits can be obtained. Low-value goods (max. 400 €) can be fully deducted immediately.

E-A calculators can, in principle, achieve a temporary shift in the tax liability by exploiting the inflow-drain principle. However, for expenses listed in § 19, paragraph 3 of the EStG (e.g., consulting fees, rental fees, distribution fees, administrative costs, interest costs, etc.), only a one-year advance payment Tax-deductible! Regular recurring income or expenses that become due at the end of the year are attributed to the calendar year in which they are economically due, if they are paid within 15 days before or after December 31. However, so-called "standing claims" that are only paid later at the creditor's request are considered to have already been paid (in the previous year).

New self-employment pension – now you can register

Farmers and freelancers (e.g. doctors, lawyers, civil engineers) can still apply from January 1, 2008. New self-employment savings participate if they submit a corresponding application to a pension fund before the end of the year. The contributions that are fully tax-deductible amount to 1.53% of the contribution base (max. up to the maximum contribution base). The contributions that are subject to taxation are tax-free in the provident fund. At Payout taxation takes place with only 6%. In the case of transfer to a pension fund, there is even complete tax exemption on the current pension payments.

GSVG exemption

Small business owner (Annual turnover under 30,000 €, income under 4,188.12 €) may qualify for a GSVG exemption for 2008 and onwards December 31, 2008 Apply. Eligible are young entrepreneurs (maximum 12 months GSVG requirement in the last 5 years), generally men over 65 or women over 60 years of age, or persons over 57 years of age, if the aforementioned limits have not been exceeded in the last 5 years.

Retention obligations

On December 31, 2008, the term ends in principle 7-year retention obligation for business documents for the year 2001. 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 retain for a long time. If properties are not used exclusively for business purposes and input tax was claimed on the non-business part, the retention obligation is extended to 22 years. Under no circumstances should documents be destroyed that serve as evidence, for example, in product liability, property, inventory, and employment contract law.

Individual record-keeping requirement due to twice exceeding the sales threshold

Entrepreneurs who in 2006 and 2007 exceeded the turnover threshold of €150,000 exceeded and so far a simplified settlement process (Cash crash) have been required to keep individual records of income and expenditure from 1 January 2009 onwards.

Invoice components/fax invoices

Invoices should be checked to ensure that they contain all the essential features, as these are essential for recognition as business expenses as well as for the deduction of VAT. Telefax The invoices submitted should be sufficient for the deduction of VAT until 31 December 2009.

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