Update: New investment premium as an incentive for companies

The COVID-19 investment premium is intended to incentivise business investments and counteract the current reluctance of Austrian companies to invest. The Austrian Investment Premium Act (InvPrG) initially entered into force on 25 July 2020, and was last updated on 28 May 2021. The relevant funding guidelines were announced on 11 August 2020 and adapted on […]

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Update on COVID-19 subsidies

The following contribution provides an overview of planned and implemented changes to existing COVID-19 subsidies, as well as of new COVID-19 subsidies (last updated: 1 June 2021). Investment premium On 25 March 2021, the Austrian Investment Premium Act was amended with the announcement of the 2nd Austrian COVID-19 Tax Measures Act (2. COVID-19-StMG). The amendment […]

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COVID-19 phased payment plans – interrelation with tax liabilities due on 15 June 2021

Since the beginning of the COVID-19 pandemic, many companies have made use of simplified payment options – in particular, deferred payments. Tax liabilities that were due by 31 May 2021 have been automatically included in approved deferrals. The deferred tax liabilities are now due by 30 June 2021. To avoid payment difficulties, a special application for a […]

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Revenue shortfall bonus

To further mitigate the economic impact of the lockdown on Austrian companies, the Austrian Federal Government announced the revenue shortfall bonus (“Ausfallsbonus”) as an additional measure at the beginning of January 2021. On 16 February 2021, the corresponding Guidelines were published in the Austrian Federal Law Gazette. In the following entry, we provide information on […]

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From 2021, COVID-19 subsidies are contingent on appropriate tax conduct

The entry into force from 1 January 2021 of the Federal Act linking subsidies from the Austrian Federal Government due to the COVID-19 pandemic to appropriate conduct in relation to tax (“WohlverhaltenG”) sees the Austrian government breaking new ground in the field of COVID-19 subsidies. Future COVID-19 subsidies will not only be contingent on the requirements […]

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Lockdown revenue compensation, December 2020

The guidelines on granting a lockdown revenue compensation for companies directly affected by the lockdown (so-called December lockdown revenue compensation) were published on 17 December 2020 and updated on 28 December 2020. In the following entry, we provide information on the key points of the updated guidelines: To provide those sectors in Austria that have […]

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Lockdown: Extension of compensation for lost revenues

Due to the Austrian COVID-19 Prevention Measures Ordinance, in place since the beginning of November 2020, certain sectors in Austria are again subject to restrictions. To provide those affected with support as quickly and directly as possible, the Austrian Federal Government has introduced compensation for revenues which were lost due to the lockdown as an immediate […]

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Avoidance of claim interest and reduction of pre-payments for CIT and IIT – applications can be made until 30 September or 31 October 2020

Reminder: Down payments to avoid claim interest for corporate income tax and individual income tax for the year 2019, as well as applications for the reduction of pre-payments for corporate income tax and individual income tax 2020, need to be made by 30 September 2020! Applications for reductions due to COVID-19-related revenue losses can continue to be […]

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Reduction of the VAT rate to 5% in selected industries

To support the hospitality, cultural and publishing industries in Austria, which have been particularly affected by the COVID-19 crisis, a reduced VAT rate of 5% will be introduced for specific items for a limited period. The reduced rate will apply from 1 July 2020 until 31 December 2020. Hospitality (food and drink) Deviating from Section 10 Austrian VAT […]

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COVID-19: Update on new support measures

On 4 April 2020, the Austrian Parliament passed three further legal COVID-19 packages (3rd, 4th and 5th Austrian COVID-19 Acts). These include new legal provisions, as well as clarifications and extensions of the previous COVID-19 Acts. This update provides an overview of the new legal packages in connection with COVID-19 support measures and represents the […]

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