Corporate tax
Income of legal persons is subject to corporation tax (Krperschaftssteuer). Entities are considered, such as a limited liability company (GmbH), joint stock companies (AG), clubs, societies and associations (Vereine), private foundations (Privatstiftungen). Tax on income of legal persons are charged not just with the founders of the company (or members of society) in the form of income tax, but again - only with a legal entity in the form of corporation tax, the amount of which is usually 34%. Income founders themselves firms (members of the community, the recipients of support funds) shall be taxable only if the entity allocates between the profit. For example, if a limited liability company or joint stock company after payment of 34% of corporation tax distributes its profits among founders who are natural persons, in which case they must still pay 25% tax on income from capital (Kapitalertragssteuer).
As can be seen from the above calculation, tax firms without profit sharing is 34% (fixed tax rate, independent of income) in the case of distribution of profits between the members is increased because of the tax deduction for capital gains to 50.5% (also fixed tax rate does not depend on income level).
As in the case of income tax (tax on individuals), with corporate tax (tax on legal persons) of taxpayers' share to be limited or unlimited tax.
Firms, the central government which is located in Austria, are subject to unlimited taxation, that is, income received in all countries, are taxed in Austria. This group includes:
- Legal persons of private law, such as joint stock companies, limited liability partnership economic, insurance associations and other legal entities of private law;
- The bodies of public law, such as a federation, land, community, economic chambers and health insurance companies social insurance;
- Foundations, and other associations with the designation of the property.
Limited taxation is levied on the firm, whose management is outside Austria have here only subsidiaries.
Firms whose founders are responsible only for his contributions (this is, above all, limited liability companies and joint stock companies), according to Commercial Code shall keep accounts. It is believed that the proceeds of such firms are the only income from operations. This means that their income is subject to corporation tax at a rate of 34%.
In contrast to these firms by other firms, such as unions, societies or associations, and may also have income from non-productive activities, such as income from the lease, the income from capital.
The main features of the taxation of limited liability companies and joint stock companies
1. Subsidiarity
In principle, the Austrian tax law there is individual taxation, which means that each taxpayer pays taxes only on their income. Subsidiarity also means that the results of two or more firms (parent and subsidiary companies) are added together and taxed. Due to the subsidiarity profit of one firm can be compensated for losses other.
In order to tax authorities acknowledged subsidiarity, the following conditions apply:
- A subsidiary company must be subordinated to the parent firm organizational, economic and financially. The share of the parent company in the share capital of subsidiary company shall be not less than 75%.
- Must be entered into the merger agreement of the results, according to which the parent company assumes substantially all the profits and losses of a subsidiary.
2. Exemption from taxation of the profits from subsidiaries
To avoid double taxation and reusable corporation tax distributable profits earned by the parent company of a subsidiary, the parent company shall be exempt from corporation tax re-assessment.
3. Possession of international firms
If the parent company is located in Austria, and its subsidiary company - abroad, distributable profit in the parent company is not taxed in the following cases:
- Foreign firm is comparable in type with the Austrian company (limited liability company, joint stock company) or a type of firm, based in another EU country, is common in this country.
- Ownership of shares for not less than 2 years, and the size of the equity of not less than 25%.
If these conditions are fulfilled, the Austrian parent company exempt from tax the profits from the sale of shares of foreign companies.
Tax exemption is not granted, if the subsidiary is located in a country with low taxes (the so-called tax haven), and derives its income (ie, does not carry out operations, industrial activities).
4. Private copying of shares
Losses from sale of shares in the GmbH or AG, or by reducing the assessed value of such shares in the accounts written off immediately materinckoy companies can not - just for the next 7 years.
Levying corporation tax
Corporate tax as income is the annual tax and is set after filing a tax return at the end of the calendar year. During the year, must make quarterly payments (15 February, 15 May, 15 August and 15 November). At present, the normal interest rate of tax is 34%. For the GmbH and AG, even if they are only the losses, there is a minimum corporate tax. It is for a limited liability company in 1750 euros, for joint stock companies - 3,500 euro for credit institutions and insurance companies - 5452 euros.
However, in the first year of existence for all the above types of businesses the minimum corporate tax rate is only 1082 euros per year.
Value Added Tax in Austria
Value Added Tax in Austria - a tax that you can get back. The point of this system is that the product, regardless of how many times he goes from one company to another, eventually reaching end users, subject to the same tax rate.
Businesses are eligible to receive VAT from the tax department, unless the supplier of goods or services to include it in the invoice to the buyer. Thus, the VAT does not affect the value of products and companies is for them an intermediate calculated values.
With the entry of Austria into the European Community has adopted it the main provisions of the law of the EU Value Added Tax. Although at present rates of VAT in the EU are significantly different from each other, and in the future, their equalization.
Soll-Besteuerung
Businesses must pay a monthly value added tax from your taxable turnover. To pay VAT to the tax office must be within 1.5 months after the end of the month in which the language of experts, the liability to pay the tax. Such an obligation arises for the month in which the company had completed the delivery or customer service, regardless of whether the buyer or the client will pay for them. This kind of taxation is called in Austria Soll-Besteuerung.
Delivery of the goods was assumed to occur when the goods pass into the possession of the buyer (ie, the buyer can physically control them and use it). Other services (eg, consulting advisors, transport services) considered to be provided, if the ends of their performance (for example, a lawyer leading the process, provided their services, if the process is finished).
If the company invoice for services not in the month in which he has completed the delivery or services rendered, in this case it can transfer the obligation to pay VAT at the most 1 month.
Ist-Besteuerung
In certain cases, the law also provides for another possibility: the emergence of the obligation to pay VAT for the month in which the customer actually paid by the company invoice for services or supplies. Such taxation is Ist-Besteuerung. In this case the delivery of supplies or services, as well as the date of the invoice do not matter. This form of taxation provided for the following businesses:
- The liberal professions (lawyers, tax advisors, doctors, construction engineers, artists, scientists, writers, etc.);
- Persons engaged in business under the license are not required to maintain accounting records, as well as small farmers;
- Landlords or domoupravlyayuschih if their turnover in one of the two preceding years does not exceed 110 thousand euros;
- Some companies supply (eg, gas, water, electricity), as well as exporting trash.
Except for the supply of all other companies may choose to apply for a shift to a system Soll-Besteuerung.
Regardless of the first or second type of tax payment for all has not yet implemented supplies or services subject to VAT payment deadline which expires in a month and 15 days after the month in which prepayment was made.
Enterprises engaged in the payment of VAT on the second circuit (Ist-Besteuerung), are also eligible to receive VAT from the tax department has not yet back to pre-paid accounts (if they received the bills for the purchase of goods or services, but they have not yet paid).
The company is liable to pay VAT on a monthly basis must take in tax administration and also pre-declaration of turnover (Umsatz-Steuervoranmel-dung, Form U30). Until the end of 2002 there was the following procedure for submission of preliminary declarations, if during the reporting period the amount of VAT required by the financial control back, below the amount of VAT, the company received from customers (ie Umsatz-Steuer> Vorsteuer), and the company paid a time this difference, it should not take the tax office a declaration on the back.
Attention! Since January 2003 there is a new procedure for regulating the situation. Beginning with the first reporting period of the year (ie January), tax administration requires mandatory pre-date tax return on turnover. (I would like to draw your attention to the fact that this year there are new forms U30 white, pink and old in the tax departments refuse to accept. New forms can be obtained from any tax office.) Exception to this rule is made only for those businesses turnover in the preceding year did not exceed 100 thousand euros. Such enterprises must take the preliminary declaration on the back only when they want to get back on the financial management of a certain amount of VAT (ie Vorsteuer> Umsatz-Steuer), since otherwise their claim will not be known financial management. Preliminary turnover declarations are not required to serve as the enterprises are exempt from VAT (eg, small businessmen or doctors).
For businesses with a turnover of less than a year, 22 thousand euros, accounting period for VAT is not a month, and quarter, and the terms of payment are, respectively, on May 15, August 15, November 15 and February 15 next year. While in the calendar year 12 months, the law requires for budgetary reasons, VAT 13 times a year.
Tax Office commits each company to pay December 15 so-called pre-payment Tosobuyu NDSU (Umsatzsteuer-Sondervoraus-zahlung) at a rate of 1 / 11 paid for the last 12 months (since September last year until August of this year) the amount of VAT. For those who pay VAT on a quarterly basis for the period of payment of special payment is November 15. The exception is when the size of this tax does not exceed 750 euros. In the next reporting period, the amount paid is calculated and subtracted from the new debt. It is recommended to make timely prepayments Tosobuyu NDSU, as in the case of late payment penalties as provided for deferment of payment of VAT on the usual one month in advance, that is, for example, the VAT in January must be paid in this case until March 15, as usual, and February 15.
Please note that prepayment Tosobaya NDSU does not automatically returned; recalculation must be done by businesses, pointing to submit declarations of the amount of the tax. Anyone who forgets to do this, give credit to the financial authorities until the end of the year (prior to filing the annual return on turnover).
The deadline for submission of annual declarations on the back (Form U1) is 31 March next year. Those who submit tax advisers (Steuerberater), can benefit from the extended deadline for submission of declarations.
Small businesses with a turnover of less than 7,500 euros per year are exempt from the obligation to submit declarations on the back.
I would also like to draw your attention to the following: In case of delay VAT payments (monthly or quarterly) as a penalty tax authorities may require you to take pre-tax returns VAT, even if the turnover of the preceding year did not exceed 100 thousand euros.
For filing returns after the statutory deadlines, tax authorities may send you a fine of up to 10% of uplachivamogo tax. In addition, late fees can be a penalty of 2%.
Since 2002, there is a new rule that allows the levy of 1%-ing a penalty in the case of second or third delay in the payment of VAT. The tax office does not prescribe a penalty only if its amount does not exceed 50 euros.
The next innovation, as from 1 January 2003, is the duty specified in the accounts:
- VAT rate or exemption;
- Number of accounts (accounts must be numbered in ascending order, and each number must be assigned only once);
- The date of the invoice (in addition to the delivery date);
- Number of UID (Umsatzsteuer-Indifikationsnummer). It is available in its tax department, submit your application.
If you put up an account, you should check them above data, since in the absence of one of these items you can not get from the financial authorities the VAT back.
Another innovation related only to construction companies, is the transition from the obligation to pay VAT to the Executive Order to the customer (Revers-Charge-System). This new procedure is rather complicated, and if you have any questions, please consult the topic with your tax advisor, accountant or consult with a tax agency.