Tax & Legal News in English | April

Changes for non-profit sport clubs

Non-profit sport clubs are allowed to pay lump-sum travel-cost reimbursements to athletes, trainers and referees. Under certain circumstances, these payments are not subject to income tax and social security contributions. The maximum amount of these lump-sum payments has been increased from EUR 60 to EUR 120 per day and from EUR 540 to EUR 720 per month. In addition, sport clubs are now obliged to report these payments to the tax authorities on an annual basis. For many sport clubs, this will be the first contact with the tax authorities. They are therefore well advised to have their non-profit statutes checked in advance (especially their articles of association).

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New subsidy for international film and streaming productions

Austria has recently introduced a new subsidy for international film and streaming productions. Producers can receive a credit of up to 35 % of the production costs spent in Austria. The recipients of the payments must be subject to tax in Austria. Special regulations apply for payments which are subject to Austrian withholding tax.

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Restitutio in integrum on the grounds of an error concerning the receipt of an appeal

According to the Administrative High Court (20 October 2022, Ra 2022/13/0035) the loss of an appeal by the postal service can be healed with a request for restitutio in integrum. In such cases the taxpayer is not obligated to verify whether the appeal actually reached the tax office, as long as he was not conspicuously negligent regarding the loss/receipt of the appeal. In order to heal such an expiration of an appeal deadline and to file a delayed appeal in line with procedural law it is mandatory to file the request for restitutio in integrum within three months after the loss of the appeal could reasonably be recognized.

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End of general exemption from benefit in kind for special vehicles

The Austrian Tax Authority defines special vehicles as vehicles which, due to their equipment, practically exclude any other private use, as for example in the case of emergency vehicles or assembly vehicles with a built-in workbench. In this context, the Austrian Tax Authority always cites vehicles with fixed work benches in the back of the car, and without a second tier of seats (like ÖAMTC or ARBÖ vehicles) as classic examples of special vehicles. So far, the Austrian Tax Authority stated that such special vehicles per se do not constitute a benefit in kind because they de facto cannot be used for private purposes of employees. With the Wage Tax Guidelines Amendment Decree 2022, the Austrian Tax Authority modified its former legal opinion regarding special vehicles. Henceforth, only the route from the workplace to the place of residence is exempt from the duty to apply a benefit in kind in the payroll. All other private trips with the special vehicle cause an obligation to provide a benefit in kind. In view of this, we now consider it necessary to keep a logbook for special vehicles to proof the purpose of trips. In the event of a wage tax audit, a complete logbook can prove that private trips with the special vehicle are limited to the route workplace and place of residence. Thus, unlike in the past, keeping a logbook is now also indispensable for special vehicles. 

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Modifications of Austrian Payroll Accounts Ordinance

The amendment of the Austrian Payroll Accounts Ordinance leads to an extended obligation of the data to be recorded on the payroll account. Specifically, the Austrian Payroll Accounts Ordinance was amended regarding tax-exempt reimbursements by the employer for charging emission-free motor vehicles, particularly therefore e-cars and e-bikes, as well as tax-exempt remunerations. The new regulations were published in the Austrian Federal Gazette on 27 February 2023 (cf. BGBl II 2023/55), and thus are applicable since 28 February 2023. The amended Austrian Wage Accounts Ordinance leads insofar to additional administrative work as especially in employer-subsidised e-mobility, a comprehensive documentation and evidence obligation must be fulfilled if payroll tax benefits shall be applied.

New regulations

Henceforth, reimbursements by the employer for charging costs of emission-free motor vehicles, which may be used by the employee for private purposes, have to be reported on the payroll account. This involves reimbursements of costs for charging at a public charging station or for charging at a charging device at home that ensures the allocation of the charging amount to the employer motor vehicle. To be included are also monthly lump sum amounts for charging and the reimbursement or purchase of a charging device. In addition, tax-exempt allowances from the employer for child care and for non-work-related trips in the context of car-sharing as well as the amount of the costs for a ticket for public transportation are to be recorded in the payroll account as of 28 February 2023. 

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EU-US Data Privacy Framework - cornerstones of the new agreement

Following the Executive Order issued by US President Biden, the EU Commission has now presented a draft adequacy decision. Compared to the overturned Privacy Shield, the deficiencies criticized by the ECJ are to be remedied and the USA would guarantee an adequate level of protection for personal data transferred from the EU to companies in the US. Under the Executive Order, US intelligence agencies' access to European data would be limited to what is necessary and proportionate to protect national security, and EU citizens would be able to use an independent and impartial two-step redress mechanism, including a newly created court, in connection with the collection and use of their data by US intelligence agencies. The draft adequacy decision will now go through the adoption procedure: As a first step, the EU Commission has submitted its draft decision to the European Data Protection Board, which, however, has already expressed some concerns.

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Extension of energy cost subsidy no. 1: guideline published

Due to the continuing sharp increase in energy prices, the extension of the funding period of the energy cost subsidy no. 1 to Q4 2022 was already legally anchored in the framework of the amendment of the UEZG in February. On 17 April, the guideline of the Federal Ministry of Labour and Economic Affairs for the energy cost subsidy no. 1 for Q4 was published, which provides precise details on the subsidy and its processing.

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Clearing Accounts of GmbH shareholders

There is a returning topic in tax audits: Clearing accounts. If there is a tax audit, the clearing accounts of GmbH shareholders, are on closer examination. Especially when there is a balance over EUR 50.000 and a running time longer than 3 years. If the company gives a loan to one of the shareholders, there is a need for a contract, like there would be for a third party. Loan amount, interest rate, running time, repayment schedule and securities should be part of the contract, to avoid accusation of hidden profit distribution.

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Update: Cost reduction for early repayment of loans

In its recent decision C-555/21 regarding consumer residential real estate loans, the ECJ was asked to interpret the directive on credit agreements for consumers relating to residential immovable property (2014/17/EU). The ECJ decided that certain maturity-independent costs do not have to be reduced and adapted to the shortened term in the event of early repayment of the loan. The current version of the Austrian Mortgage and Real Estate Lending Act (“HIKrG”), to which consumer residential real estate loans are subject, thus complies with EU law; however, it would now be possible for the legislator to change the respective provisions in the HIKG again and limit it to the reduction of maturity-dependent  costs. 

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Formal requirements for group applications

In its recent ruling dated 3.2.2023 (RV/7102169/2022), the Austrian Tax Appeals Court ruled on the admissibility of submitting a group application via FinanzOnline. According to the Court´s  opinion, it is not permissible to submit an application via function “other submissions” in FinanzOnline. A group application can only be submitted in a valid form using the official forms. Group applications submitted via FinanzOnline constitute irrelevant submissions pursuant to Section 5 FOnV 2006. Therefore, if FinanzOnline does not provide a separate function for a specific request, an original application must be submitted to the tax office.

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Tax Deadlines in May 2023

• Intrastat declaration for April 2023.
• Advance VAT declaration for March 2023 (or the first quarter 2023).
• “Kammerumlage” (contribution to the chamber of commerce) for the first quarter of 2023.
• Standardized Consumption Tax for March 2023.

For an overview of all Tax Deadlines in March click here...