interest, request for reduction, and input VAT refund until 30 September 2025
Reminder: Payments to avoid claim interest, request for reduction of pre-payments for individual income tax and corporate income tax as well as filing of requests for input VAT refund need to be made until 30 September 2025!
Claim interest
For back payments and tax credits in relation to corporate income tax and individual income tax for the calendar year 2024, claim interest will begin to be incurred from 1 October 2025 (for max. 48 months). The current interest rate amounts to 3.53% (2% above the base rate). The claim interest cannot be deducted from taxable income and the credit interest is not taxable. If the calculated amount of claim interest is below EUR 50, no interest will be levied.
In order to avoid claim interest for back payments, a pre-payment in the amount of the anticipated back payment for corporate income tax or individual income tax can be made until 30 September 2025. However, excessively large pre-payments are not advisable as credit interest will not be calculated on these amounts.
It is important to remember to include a corresponding payment reference on the bank transfer form for corporate income tax and income tax payments (e.g. “K 1-12/2024” or “E 1-12/2024”) in order to guarantee correct allocation of the payment.
Request for reduction of pre-payments of individual income tax or corporate income tax
If the set pre-payments of individual income tax or corporate income tax exceed the expected tax liability arising from the anticipated taxable income for the financial year 2025, it is possible to apply for a reduction of the pre-payments for 2025 until 30 September 2025. The request for reduction must include corresponding documentation – a transparent planning calculation or forecast regarding the anticipated income for 2025 must be submitted to the tax office.
For company groups as defined in Sec. 9 Austrian Corporate Income Tax Act (KStG) the request for reduction must be submitted by the group parent considering the entire taxable income of all group members.
VAT interest
For additional VAT debits and credits relating to the calendar year 2024, VAT interest will be charged. Credit interest starts to accrue from the 91st day after receipt of the annual VAT return, and debit interest from 1 October 2025, each running until the notification of the assessment (with no maximum duration). The current interest rate amounts to 3.53% (2% above the base rate). If the calculated interest amount is below EUR 50, no interest will be levied.
Unlike claim interest, VAT interest on VAT debits cannot be avoided by making advance payments. Therefore, it is advisable to file the annual VAT return in a timely manner. In cases of significant additional charges, it is generally recommended to assess whether action under tax criminal law is necessary.
Input VAT refund in the EU member states
Austrian entities, who plan on claiming input VAT from another EU Member State for the year 2024, are required to submit the request for refund online via FinanzOnline no later than 30 September 2025. Since possible error messages are transmitted only with some time delay, we recommend submitting the request already a few days prior to the deadline, in order not to jeopardise a timely submission of the request.
Please enquire about whether and in which form copies of invoices are to be enclosed to the request for refund prior to submission. Otherwise, your request may be considered as not submitted and is not possible to be submitted after the deadline.
We are happy to provide support if you have any questions!
