Austrian Tax Amendment Act 2022 – government bill published

The government bill for the Austrian Tax Amendment Act 2022 (AbgÄG 2022) was published in mid-June. Confirmation of the final version is expected before the summer recess. The AbgÄG 2022 contains numerous minor adjustments and changes related to income taxation, VAT, and procedural law. Tax changes relating to the previously announced inflation package, particularly the abolition of […]

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Quota system: New extension of deadline for tax returns for 2020

As previously reported in our Tax Newsletter of 16 March 2022, the grace period for the submission of tax returns for 2020 for taxpayers with tax representatives was initially extended by three months (from 31 March 2022) to 30 June 2022. The Austrian Ministry of Finance (BMF) has now extended this period by a further three months […]

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Non-deductibility of severance payments from social plans is unconstitutional

In its decision of 16 March 2022, the Austrian Constitutional Court (VfGH) overturned the prohibition of deductions under Sec 20 para 1 subpara 8 Austrian Income Tax Act (EStG) as unconstitutional. This provision prevents the deduction of voluntary severance payments made by the employer to the extent that these exceed the amounts eligible for preferential tax treatment on the […]

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Rising energy costs: Reduction prepayments of individual and corporate income tax

Austrian companies currently face rising energy costs, which may also impact their liquidity in the short term. For this reason, the Austrian Ministry of Finance (“BMF”) stated on 1 April 2022 that it will be possible to simplified reduce prepayments of individual and corporate income tax in administrative terms. The taxpayer must be able to credibly […]

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Quota system: Extended deadline for tax returns 2020

Tax returns (e.g. individual and corporate income tax returns or annual VAT returns) generally have to be submitted by 30 June of the following year (if submitted electronically). The tax authority may extend the deadline for submission of tax returns on a case-by-case basis (discretionary decision) following a substantiated request (individual extension of submission deadline). If […]

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Donating cash and goods for Ukraine – tax issues

The current humanitarian disaster in Ukraine has confronted us all with images and concerns that we in Europe have not had to deal with for many years. However, many people are helping with compassion and humanity, providing support where they can. It is not only individuals who have demonstrated a willingness to help – many […]

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Eco-social Tax Reform Act 2022 published in Federal Law Gazette

The three parts of the Austrian Eco-social Tax Reform Act 2022 were published in the Federal Law Gazette on 14 February 2022. The changes made since the consultation draft (see German Tax Newsletter of 12 November 2021) and the bill (see Tax Newsletter of 20 December 2021) are listed below: Eco-social Tax Reform, Part I Changes to […]

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Austrian National Council approves COVID-19 support measures in tax law

On 21 December 2021, the Austrian Parliament passed two legislative packages on pandemic-related support measures. These concern both tax relief in the Income Tax Act (EStG), Corporate Income Tax Act (KStG), VAT Act (UStG) and others, as well as simplifications in connection with tax payments. Here we have provided an overview of the key points: Income […]

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Eco-social tax reform 2022: Changes to the draft legislation

On 15 December 2021, the bill of the Austrian Eco-social Tax Reform Act 2022 was published. Below we provide an overview of the most relevant changes between the consultation draft and the bill (see German Tax Newsletter of 12 November 2021): Tax-free employee participation in profits From the year 2022, employees are to be eligible […]

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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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