Austria Gazettes Law For COVID-19 Tax Relief Package

by Ulrika Lomas, Tax-News.com, Brussels

31 August 2020

Austria has published in its Official Gazette legislation to give effect to tax relief measures included in a recent COVID-19 economic stimulus plan, which among other measures extends the temporary 55 percent top rate of personal income tax.

Under the plan, the 55 percent rate of tax for incomes above EUR1m (USD1.1m) will be extended until the end of 2025. Originally, this temporary tax hike was due to expire at the end of 2020. The lowest tax bracket will be reduced from 25 to 20 percent.

The plan also provides for a loss carry back facility, such that taxpayers may carry back a maximum of EUR5m in losses incurred in 2020 to offset against income declared in 2018 and 2019.

Additionally, ministers agreed that businesses can depreciate up to 30 percent of the book value of capital assets each year, from July 1, 2020. This measure has no expiry date.

Further the October 1, 2020, deadline for the payment of deferred taxes is automatically extended to January 15, 2021.

The Economic Strengthening Act 2020 (KonStG 2020) was published in the Federal Law Gazette I No. 96/2020.

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