Tax-News | Business-News

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

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 ( or - 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