At the beginning of 2018 only a few changes came into force in Austria, mostly due to the termination of the old coalition in the middle of 2017.
Government programme in Austria
The government programme included several fiscal measures. Among others, there is to be a structural tax reform which is to particularly include the following aspects:
- Unification of the financial statements according to commercial and tax law
- Simplification of the determination of the taxable income for partnerships
- Taxation irrespective of legal form
- Reduction of income categories
- Reduction of exceptions and special provisions
- Reform of extraordinary expenses as well as special expenses
- Reformation of the tax scale – especially in order to decrease the tax burden of little and lower incomes (the abolition of the sly progressive taxation is being examined as well)
In order to decrease the tax burden of companies and its labour factor, the following measures should be
put in place:
- Reduction of CIT on non-distributed profits for SMBs
- Reduction of VAT on accommodation from 13 % to 10 %
- Reactivation of the regulations concerning repayment of contribution
- Decrease of non-wage labour cost
- Simplification of business transfers
Furthermore it is intended to simplify and modernize payroll accounting. The actual changes remain to be seen.
Register of economic owners
Disclosure of data concerning the (direct or indirect) economic owners of certain legal entities (especially particular companies, foundations and trusts). Reports have to be made by June 1st, 2018. Besides certain occupational groups, public authorities can access the register. In case of a violation of the reporting obligations, penalties up to EUR 200,000 can be imposed.
Social insurance assignment law
The purpose of this law, which came into force on July 1st, 2017, is to reduce uncertainties concerning the classification of self-employment or employment. This is being accomplished by the application of three procedures (insurance classification upon application, wage related audits with involvement from SVA/SVB, pre-assessment).
As of January 1st, 2017 there is an extended property term regarding VAT. Now in particular equipment on/ in a property can be part of the property.
The research premium has been increased from 12 % to 14 %.
TPA offers an overview of the most important tax innovations in the following CEE and SEE countries in which we operate: Austria, Albania, Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Serbia, Slovakia and Slovenia. Investing in CEE/SEE 2018