Taxation Measures in the Austrian Government’s Work Program by 2020
- Written by: Editor
- Posted: 2018-04-06
The Austrian Federal Government released a new work programme for 2017 thru 2020. The document includes a set of mentionable tax-related changes which may be divided into five distinct categories, starting with corporate tax reports and personal tax reforms. Our team of lawyers in Austria highlights the main changes that are planned for the taxation of companies and individuals in the country until 2020.
Tax relief for companies
The work programme 2017-2020 will include an important change to the taxation regime for companies in Austria: the corporate income tax rate of 25% will be reduced. Moreover, the VAT rate for overnight stays will be reduced to 10 percent from the current 13 percent in an effort to encourage tourism in the country.
Some changes will also be brought to the tax treatment of dividend distributions and capital repayments. What’s more, the transfer of businesses within family members will be simplified.
Tax relief for individuals, especially families
A new program, the Family bonus plus, wishes to reduce the tax burden on families by as much as 1,500 Euros. For this purpose, families that are eligible for the Austrian family allowance will be able to deduct 1,500 EUR per child per year (the child for which the deduction is made needs to live in Austria and be a minor). Child allowance and the possibility to deduct the costs of childcare will be abolished.
Changes to the Austrian Income Tax Act
Significant changes are also planned for the Austrian Income Tax Act, with a programmed recodification of the Act for the purpose of simplifying and modernizing the present law. Among other changes, the progressive income tax rate will be reformed and the manner in which taxable income will be determined for partnerships will be simplified.
Our team of attorneys in Austria can give complete details about the full set of changes proposed in the work programme.
Contact our law firm in Austria for complete legal counseling for individual and corporate taxation.