As part of the tax reform, there were some changes for businesses in 2009. Which ones are particularly worth mentioning?
Other than a long-lasting relief for all tax payers, it was important to me - especially in difficult times - to also send a clear signal to our domestic businesses through the 2009 tax reform - with the new revenue tax exemption limit, for example. It applies irrespective of the balance or profit and loss account, and was increased from 10 to 13 percent. Completely new is that for the first 30,000 EUR, a basic exemption amount of 13 percent automatically applies. This way, for an income of up to 30,000 EUR, both business owners as well as employees now get a tax-privileged one-sixth of a year. In addition, as a stimulus measure, we have created the possibility of early depreciation of fixed assets in the amount of 30 percent.
Which advantages does the Austrian tax law currently offer to internationally active companies (keyword: group taxation)?
The primary goal of introducing the new group taxation system was to make Austria more attractive as a business location for international groups of companies. But this model also brings many advantages for medium-sized and large companies. By combining the tax results of entities that are connected financially, profits and losses can now be balanced within a group of companies. This also applies to losses of foreign-based subsidiaries; however, taxes will have to be paid back if profits occur at a later point. This gives our businesses more flexibility.
Which other tax reforms relevant to business owners will take place in 2010 and the following years?
We want to create the best conditions possible for our domestic businesses, and keep Austria attractive and internationally competitive as a work and business location. Therefore we are continuously setting measures to support our domestic businesses in the best way possible. We definitely want to bring even more relief with regards to the labour factor and also reduce administrative costs – for example, through “Lowering Administrative Costs for Businesses”; a project by the ministry of finance, the goal of which is to save approximately one billion EUR in administrative costs for businesses by 2012.
Which tax incentives does Austria currently offer for start-up businesses?
More young businesses also mean more innovation for our country. For this reason, we are deliberately promoting entrepreneurial spirit with our start-up subsidy law. There are numerous tax shelters such as the elimination of stamp duties, real estate transfer tax or certain court fees. Since hiring the first employees often poses a financial obstacle for start-ups, we support them by eliminating certain ancillary labour costs. This way, we also set a measure related to employment politics. In addition, by eliminating inheritance tax and gift tax, business handovers were facilitated significantly.
With which promotional measures does the federal government support the settlement of international companies in Austria?
The settlement of international companies is an important driver for the creation of jobs and economic growth. With the Austrian Business Agency, we have been successfully active in this field for years. The advantages of Austria as an innovative business location are obvious: a stable system of law, preferential treatment for start-up businesses, attractive group taxation and a tight network of agreements in order to avoid double taxation – and those are only a few of the factors that are responsible for our success.
Through what kind of promotional measures does the federal government currently support the creation of additional jobs in companies? What promotional measures are planned in this regard for 2010?
Especially in these difficult times, we have proven just how dedicated we are in our fight against the crisis. With targeted measures such as the company liquidity law and the bank aid package, we have created stability in the market, and have secured thousands of jobs with our labour market packages. With the economic stimulus packages and the investment initiative in the amount of approximately three billion EUR, we have given a strong, targeted boost to the economy. Now we are going to evaluate these programmes, and in 2010, we will decide whether additional measures are required.
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