Would you like to go to the mobile version?

Tax-News | Business-News

NPO grant for Austrian associations, fire departments, churches, outsourced legal entities

The Corona crisis has led to economic impairment and loss of income for many non-profit organizations - the costs still run. So that nonprofit organizations (NPO) can continue to perform their important social services, an application for a tax-free, non-repayable NPO grant is possible from July 8, 2020. Read article

Periodic VAT reduction to 5 % for restaurants, pubs, hotels, culture, media and other companies in Austria.

LBG Austria - Summary: The National Council decided to reduce the VAT to 5%, with a time limit from July 1, 2020 to December 31, 2020 for certain services in selected industries. This includes gastronomy, restaurants, Almausschank, Buschenschank, shelters and, under certain conditions, the catering operations of bakeries, pastry shops and butchers. Hotels stays and similar accommodation services, including private room rentals and camping are also included in the temporary tax relief. This also applies to cultural establishments, cinemas, theaters, music events, publications, works of art, museums, nature parks, zoos, circuses and the performance of showmen. The necessary organizational implementation (e.g. consideration in electronic cash registers and merchandise management or invoicing systems, issuing of receipts, adjustments in finance and accounting, consideration in the advance sales tax return) is necessary both in the event of a reduction in VAT on 1.7.2020 and then again on return at the higher VAT rate on 1.1.2021. July 1st, 2020 I LBG I Heinz Harb Contact & Advice: This information naturally shows basic aspects of the topic - for completeness and correctness no guarantee can be given despite careful preparation. LBG will gladly advise you in your individual situation. Please contact one of our 31 Austria-wide locations (www.lbg.at) or welcome@lbg.at - we will gladly bring you together with one of our experts, who is very familiar with your request. Read article

Focus Controls by the Financial Police in the areas of “short-time work” and “wages and social dumping”

The Federal Ministry of Finance (BMF) has recently drawn attention to focus checks by employers on "short-time work" and "wage and social dumping" by the financial police. According to the BMF, the following applies: as much goodwill as possible, as much control as necessary. In the “wage and social dumping” examination field, drastic under-wages from (foreign) employees as well as missing registration or wage documents, which led to criminal complaints, were found. Finance Minister Gernot Blümel announces the continuation of the fight against wage and social dumping in the current year. Read article

Establishing a business: Formation of a company or subsidiary in Austria

Any Austrian citizen or foreign national may establish a business in Austria. A business operated subject to the entrepreneur’s full personal liability (i.e. without any further partners or shareholders) is referred to as a “sole proprietorship. As an alternative, there is also the option of forming a partnership or company through which the business can be operated. At least two partners are required to form a partnership entity or Personengesellschaft. By contrast, one individual is sufficient to establish an incorporated entity or Kapitalgesellschaft (GmbH, AG). Read article

Double-Tax-Treaty between Austria-Italy: COVID-related home office does not damage the applicability of the "Frontier-Worker-Rule" and does not establish a "Permanent Establishment" abroad

The competent authority of the Republic of Austria and the competent authority of the Republic of Italy, desiring to minimize the negative tax consequences of the COVID-19 pandemic and in particular the burden of cross-border workers, have concluded the following competent authority agreement according to Article 25 paragraph 3 of the Convention between the Republic of Austria and the Republic of Italy for the avoidance of double taxation and the prevention of tax evasion and avoidance with respect to taxes on income and on capital, signed in Vienna on the 29th June 1981 as amended by the Protocol signed in Vienna on the 25th November 1987 ("the Convention") with respect to the interpretation and application of Article 15 paragraph 4 of the Convention. Read article

Corona virus: How do you get room for financial maneuver? Reducing advance payments for (corporate) income tax, VAT and social security contributions

Anyone who is directly or indirectly affected by the Corona virus as an entrepreneur - on the one hand due to illness and quarantine or on the other hand due to massive business losses - and must fear payment difficulties and liquidity problems as a result, has the option of reducing prepayments of income and corporate tax as well as social security contributions or to apply for deferral or payment in installments for all taxes and social security contributions. Read article

Employer knowledge: Compliance with the average weekly working hours within a rolling calculation period is now mandatory for the labor inspectorate

Since the most recent reform of working hours (“upper limit - 12-hour day”), employees may be employed for up to 12 hours per day and up to 60 hours per week - subject to differing regulations in collective agreements, company agreements or individual contractual regulations. However, this does not apply without restriction; the increased amount of working hours should not be the rule, but the exception. The control instrument for this is the so-called calculation period, which must be recorded by the employer and within which the labor inspectorate checks compliance with the average weekly working time. The Working Time Act (AZG) stipulates that the average weekly working time may not exceed 48 hours over a period of 17 weeks. Collective contractual provisions can extend the calculation period to 26 weeks, and for technical or organizational reasons up to 52 weeks. Read article

Tax reform 2021 - 2024 | Schedule | Ministerial Council January 30th 2020

LBG Austria has analyzed the Austrian federal government's plans for taxes, social security, balance sheet and choice of legal form, summarized in the LBG entrepreneurs’ guide „Was bringt das Regierungsprogramm 2020 – 2024 | Analyse & Empfehlungen“ and supplemented by recommendations for entrepreneurs, self-employed, liberal professions, farmers, managing directors, board members and employees. In the LBG guide you will find all the details on the tax reform and our first professional assessment. Read article

Double taxation agreement between Austria and France: Observe withholding tax obligation for foreign lecturers

LBG Austria - Summary: If a natural person resident in France for tax purposes offers courses in the field of adult education on a self-employed basis and if he or she also carries out this lecturing activity in Austria for a short period, this one-time temporary rental of premises in Austria for a period of 50 days does not constitute a fixed establishment regarding article 14 of the double taxation agreement between Austria and France. Accordingly, Austria is not entitled to taxation of the income generated in the course of the lecturing activities. However, there is a limited tax liability for the lecturer in Austria, resulting in the obligation of the client (course participant) to pay withholding tax. The tax is thus withheld or deducted from the income due to the recipient. Read article

Application for reduction of income tax/ corporate income tax prepayments 2019 by September 30th 2019

LBG Austria - Summary: If the actual income tax/corporate income tax on the estimated taxable income 2019 is expected to be lower than the current income tax/corporate income tax prepayments 2019, it is possible to file an application for reduction on the income tax/corporate income tax prepayments with the tax office by September 30th 2019 at the latest. However, the application has to be justified and therefore supplemented by a detailed forecast of the taxable income 2019.

August 29, 2019
Read article