Tax-News | Business-News

LBG Austria: Simplified (Digital) Formation of a Limited Liability Company (Gmbh) in Austria

Company founders (start-ups) often decide either to set up a sole proprietorship or to set up a limited liability company (GmbH). When choosing the right legal form for a company business issues, trade law, professional regulations, financing, the clientele, the risks associated with business activity and the associated liabilities, the taxation of both the results generated and the results obtained, questions of social security law, the transfer from private assets to future business assets and the current or future desired group of shareholders play a crucial role. In individual cases, the conclusion of service, rental and lease agreements in the family circle with the GmbH to be set up is important.

Since 1.1.2018, a simplified (digital) formation without a notarial act or notarial certification is possible if a GmbH is set up by a natural person who is also the sole shareholder. The articles of association replace the declaration of establishment of the company. However, the following additional requirements are mandatory.

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BREXIT - VAT effects: Apply for input tax refund from Great Britain (UK) for 2020 by March 31, 2021

The withdrawal of the United Kingdom (UK) from the European Union affects a wide range of legal areas. In terms of sales tax, the United Kingdom has been a third country since the beginning of 2021. In the area of ​​sales tax, the following must be observed:

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UK Companies: Establishment of a Branch Office in Austria

The establishment of a branch in Austria enables foreign legal entities to obtain a trade license in Austria and then to participate in the domestic economic life in a stable and continuous manner. Read article

New database for VAT rates for deliveries to "private individuals" within the EU due to the elimination of the delivery threshold from 1st July 2021

If goods are delivered from Austria to another EU member state to a non-entrepreneur by an Austrian entrepreneur or on his behalf, or if an Austrian supplier is indirectly involved in such transport or dispatch, this delivery applies for VAT purposes from July 1, 2021 as executed in the EU country in which the delivery ends. The previously known delivery threshold will no longer apply from July 1, 2021. For Austrian entrepreneurs, there may be increased registration obligations abroad and the foreign invoice issuing regulations may have to be applied. In order to be able to meet these obligations more easily, the European Commission recently published a database for querying VAT rates in the EU member states. Read article

Employer information: Postponement of the adjustment of workers to salaried employees planned for 1.1.2021 regarding notice periods - New date of entry into force: 1.7.2021

The planned harmonization of the termination provisions for workers with those for salaried employees has been postponed from January 1, 2021 to July 1, 2021 in the course of the current collective agreement negotiations.

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Outsourcing Payroll Accounting in Austria - We advise you in all employment matters

Employing in Austria poses a variety of challenges for companies. It's good to have a reliable partner by your side who has the technical know-how and the resources. Get an idea of ​​our advice and services in the LBG business area “Employer Advice & Payroll Accounting”.

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Employer Information: Longer Termination Periods for Austrian Workers from January 1st, 2021.

Due to the harmonization of the termination provisions for blue-collar and white-collar workers from January 1st, 2021, new notice dates and periods must be observed when employing workers. If a worker is dismissed from 2021 onwards (for example unchanged according to the regulations that apply until December 31st, 2020), this can result in a claim for dismissal compensation. Furthermore, from 2021 onwards, only quarterly termination dates are provided by law. A different, forward-looking service contract agreement on the 15th and last of each month is recommended. As always, special provisions deviating from the statutory provisions in industry-specific collective agreements or individual contractual provisions as well as special provisions in the case of employment due to a temporary need, insofar as these are legally permissible, must be observed.

We have summarized the most important changes and related recommendations for managing directors, board members and HR managers, based on our initial information in the LBG company newsletter from spring 2019.

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Deadline for submitting the annual financial statements of an Austrian corporation to the corporate booking has been extended due to COVID-19.

The legal representatives of corporations (organs such as managing directors of a GmbH, board of directors of an AG) have to prepare the annual financial statements (balance sheet, profit and loss account, appendix, management report) no later than five months after the balance sheet date, depending on the size class. Nine months after the balance sheet date, disclosure must then be made at the commercial register court of the registered office of the corporation. In the course of far-reaching extensions of the deadline due to legal Covid-19 measures, this deadline for the disclosure of the annual financial statements with the commercial register was also extended to 12 months.

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"KMU.E-Commerce" - digitization funding: Grant for Austrian companies of up to EUR 30,000. The application deadline ends on 15.11.2020 - First come, first serve.

Trade is changing. Depending on the range of goods, location and intensity of advice, brick-and-mortar retail still continues to enjoy great popularity in the classic “business”: shopping in the “first world”. In addition, there are combination models of stationary and online trading as well as classic e-commerce on the Internet, with mobile commerce (m-commerce) gaining ground worldwide. With the funding program KMU.E-Commerce, the Federal Ministry for Digital and Economic Affairs wants to open up the great potential of sales and marketing opportunities for Austrian small and medium-sized enterprises (commercial enterprises and liberal professions) that digitalization offers. This is intended to improve the competitiveness of these companies and provide important growth and employment impulses for Austria as a business location. Read article

Investment bonus of 7% or 14% for all Austrian companies – Applications can be submitted from September 1st, 2020 to February 28th, 2021

In order to support the Austrian economy in the wake of the Corona crisis, the investment bonus is intended to create an incentive for corporate investments and thus contribute to strengthening economic development after the lock-down. Applications for the non-repayable investment bonus can be submitted to “Austria Wirtschaftsservice” (aws) between September 1, 2020 and February 28, 2021. An essential prerequisite is that the first measures (e.g. order, placing of order, start of construction) for new investments that are subject to capitalization in depreciable assets have been taken in the period from September 1, 2020 to February 28, 2021. Entrepreneurs (within the meaning of the UGB) from all sectors who have a registered office and / or a permanent establishment in Austria and are legally operated in their own name and for their own account are eligible for funding - from one-person companies to large companies. The company making the application is obliged to submit a statement of the investments made no later than three months after the last commissioning and payment of the investment to be funded according to the funding commitment. From a grant amount (investment bonus) of EUR 12,000, the settlement with regard to the activation of the investments applied for for funding must be confirmed by a tax advisor, auditor or accountant on behalf of the funding applicant. The following essential details must be observed in any case. Read article