BO-Krenn: Improvements in the tax environment set important impulses for the business location!
Vienna (OTS) – "Today's resolutions in the Budget Committee have reached an important intermediate step for the future of the business location. The Tax Reform 2020 and Accompanying Measures will result in cuts in social contributions, tax relief for low-paid, retired and small business, renewable energy tax credits and reduced rates for e-books. The standard consumption levy (NoVa) will be changed and the revenues of the new digital taxes will help Austrian media companies with regard to digital transformation processes and the expansion of digital offerings ", emphasizes the chairman of the liberal economy and WKÖ vice-president, Matthias Krenn, the most important new framework conditions.
Changes in social security contributions
Employee tax credits reduce the burden on lower incomes by increasing the reimbursement of social security contributions and increasing the amount of the tax deduction. In addition, with an annual income of less than Euro 21,500, there is an applicable social security bonus of Euro 300, -. The first actual reductions are available from 1.1.2020 in the field of SVS (self-employed and farmers) with a reduction in health insurance contributions to 6.8 percent (reduction of 0.85 percent).
The discharge takes place by lump sum and increase of the small entrepreneur limit according to the value added tax law on Euro 35.000, -. Immediate depreciation of low-value assets is raised from Euro 400 to 800.00.
Recalculation of the NoVA and benefits for renewable energy
The existing formula for calculating the standard fuel consumption tax (NoVA) should approximate the CO2 emission values and will be penalized for vehicles with particularly high values of penalty amounts. Similarly, the basis of assessment of the motor-related insurance tax and the motor vehicle tax will be ecologically socially and compatible redesigned. This will make it possible to benefit from exemption from the electricity tax on self-generated / consumed electricity as well as for hydrogen and biogas.
Securing the revenue of tobacconists and reduced tax rate on e-books
Through a restructuring of the tobacco tax, the trade margin for cigarettes is expected to increase slightly each year. In future, electronic publications will be equated to printed matter with a VAT rate of 10 percent.
Digital tax on online advertising sales
The measure takes into account the increasing digitization to increase tax fairness for digital economy services (worldwide annual turnover of € 750 million and at least € 25 million in online advertising revenues).
"This tax reform has solutions to counteract the progressive tax system. All measures are approaches that the entire Austrian economy needs in order to maintain its position in international competition. We as service providers have earned us tax relief – also in view of the deteriorating economic situation. We welcome today's decision to implement the tax reform package. The seriousness of the situation was recognized and a future program for the economy and all top performers in the country set ", concluded Krenn.
Inquiries & Contact:
Freedom Economy – THE NEW FREEDOM
Press spokesman Andreas Bussek
Tel: 01 / 4082520-16, Mobile: 0043 664 88872020