Tax-News | Business-News

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

Austrian collective agreement for trade: New salary scheme. A transition to the new salary scheme is mandatory by January 1st, 2022 at the latest.

The collective agreement for trade provides for a new salary scheme. Retail companies must transfer their employees to the new salary system by January 1st, 2022 at the latest. Some trading companies have already made the changeover, and many are just about to change over. Depending on the individual company situation, a changeover before January 1st 2022 might be advisable.

When choosing the “right” point in time to switch, economic factors, e.g. pending investment or expansion plans, planned new hires, direct or indirect costs arising in the transition as well as internal organizational factors e.g. training of employees, adaptation of the payroll program or the creation of resources for administration should be taken into account. We will be happy to advise you on the best time to change for your company, support you with the changeover to the NEW salary system and bring in our practical experience from projects that  we have already been implementing.

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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