Austria – tax measures in response to COVID-19

Special rules concerning coronavirus

Commonly occurring infections with the SARS-CoV-2 virus (“2019 novel coronavirus’) and related regulatory measures such as domestic quarantine and the closure of educational institutions, cancellation of events and generally the restriction of daily life can lead to this, that – starting in mid-March 2020 – there will be liquidity bottlenecks and delays in payment may occur.

The application of the measures listed below is a prerequisite in all cases, that the taxpayer can show credibly that he can benefit from a liquidity shortage which is specifically traceable to a SARS CoV-2 virus infection. For this purpose, include, for example, unusually high cancellations of hotel reservations, cancellation of sports and cultural events due to official prohibitions, cancellation or impairment of supply chains or loss of revenue due to changes in consumer behavior. The text mentioned under point 3 can be used to provide credibility without much bureaucracy.

All applications concerning the measures listed below must be looked at immediately.

1. advance payments of income or corporation tax for 2020

Advance payments of income or corporation tax for can be made in accordance with § 45 (4) EStG 1988 or set at zero euros (point 1.1). About the total or partial non-determination of income or social security contributions Advance payments of corporation tax for taxable income under section 206(1)(a) BAO (point 1.2).

1.1. reduction of advance payments of income or corporation tax
(Section 45(4) and & EStG 1988)

Taxpayers affected by a loss of income due to the SARS-CoV-2 virus affected, may submit an application for a reduction in income or social security contributions until 31.10.2020 advance payments of corporate income tax for the calendar year 2020. In this application, the taxpayer must pay the anticipated reduction of the tax base based on the specific circumstances of the case. The application may be submitted in FinanzOnline. For taxable persons who do not use FinanzOnline will be provided with a sample form.

The tax office must reduce the advance payments for 2020 accordingly. Results for the calendar year 2020 probably no tax regulation, the tax office must fix advance payments for the calendar year 2020 at zero euro. Such requests are to be dealt with immediately.

1.2 Non-determination of advance payments of income or corporation tax
(§ 45, para. 4 EStG 1988 in conjunction with § 206, para. 1, lit. a BAO)

Where the assessment of advance payments of income or corporation tax for the calendar year 2020 in accordance with point 1.1 has not been made with zero euros, the advance payment to the amount expected to be paid in the calendar year 2020.

If the taxpayer is affected by the consequences of the SARS-CoV-2 virus emergency is affected in terms of liquidity in such a way that it is unable to pay the advance payment in the amount specified in § 45 (4) of the 1988 Income Tax Act, he may apply to his tax office encourage the payment of income tax or corporation tax advances for the calendar year 2020 in its entirety or to fix it at an amount equal to which is lower than the expected annual tax in 2020.

In accordance with § 206 para. 1 lit. a BAO, the tax office has set the amount of the income tax or corporation tax advance payment accordingly at a lower amount or zero euros. The condition is that the taxpayers are aware of the consequences of the SARS-CoV-2- the liquidity crisis caused by the virus. Such suggestions are to be dealt with immediately.

1.3 Abstention from the determination of additional claim interest
(§ 205 in conjunction with §Section 206 (1) lit. a BAO).

The Federal Department of Finance has refrained from deciding in accordance with § 206 paragraph 1 lit. a BAO to refrain from acting if the reduction or discontinuation of advance payments in the case of the investment of income or capital gains (after 2020) corporate income tax for 2020 will result in interest on additional claims.

 2. levy collection

 2.1 Deferral and payment in instalments

The taxpayer can apply to his tax office for the date of payment defer payment of a levy (deferral) or grant payment of the levy in instalments (Section 212(1) BAO). In the application, the taxpayer’s concrete concern is credible to do.

The Federal Department of Finance must consider the special situation created in individual cases by the appearance of the SARS CoV-2 virus is to be taken into consideration accordingly. The application must be processed immediately.

2.2 Deferral interest

The taxpayer can apply to his tax office (e.g. in the application for a deferral or installment payment), from the determination of the costs incurred in accordance with § 212 para. 2 BAO interest on deferral. The taxpayer is credibly affected by the deferral to do.

If this is available, the tax office must comply with the suggestion and, pursuant to § 206 Para. 1 lit. a BAO to reduce the deferral interest to an amount down to zero euros. The suggestion is to be submitted at the same time as the request for deferral or payment by instalments is processed to edit.

2.3. late payment penalties

The taxpayer may apply to his tax office to have an imposed to reduce or not to fix a late payment surcharge pursuant to § 217 para. 7 BAO. In the application the taxpayer’s concrete involvement must be substantiated.

When processing the taxpayer’s application for a reduction, the tax office must set a default surcharge in accordance with § 217 para. 7 BAO, that there is no gross negligence for the default, if the concrete affectedness of the taxpayer was made credible.

3. Credibility

If there is a loss of yield due to the SARS-CoV-2 virus infection, which is amount of income or corporation tax advance payments for the year 2020 and/or if there is a liquidation bottleneck caused thereby, the Credible evidence must be provided as follows:

3.1 Reduction of advance payments (text module)

I am aware in my operational activities (indication of the industry …) of the effects of the SARS-CoV-2 virus infection affected. As a result, the previous setting of advance payments for the calendar year 2020 is too high I have assessed the impact of the SARS-CoV- 2 virus infection on the level of the tax base for 2020 carefully and therefore request ….

3.2 Collection of duties (text module)

I am aware in my operational activities (indication of the industry …) of the effects of the SARS-CoV-2 virus infection affected. This is causing a bottleneck in liquidity which is an emergency. I therefore request ….

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