Lump-sum payment in agriculture and forestry

As an "urgently needed bureaucratic relief", the tax consulting and auditing firm Mazars welcomes the increase in the turnover limit for lump-sum taxation for agriculture and forestry from the current 400,000 euros to 600,000 euros, which will come into effect on January 1, 2023. According to Mazars, such measures should also be extended to other sectors - for example, the limit for small business flat-rate taxation for income and sales tax is still 35,000 euros. In addition, Mazars advocates an automated inflation adjustment of tax thresholds such as the small business rule, commuter allowance and mileage allowance.

The turnover limit for claiming a flat rate for farmers and foresters who are not required to keep accounts will be raised from the previous 400,000 euros to 600,000 euros as of January 1, 2023. This limit applies not only to the determination of income for income tax purposes, but also to the flat-rate option for VAT purposes.

In addition, the cost-of-living relief package III raises the upper limit of the standard value for partial lump-sum taxation from the previous 130,000 euros to 165,000 euros. However, this increase only applies on condition that the revenue limit of 600,000 euros is not exceeded. In addition, the revenue limit for secondary agricultural activities will be increased from the previous 40,000 euros to 45,000 euros.

"Due to inflation, the turnover of family farms increases, but not their income. The running costs for energy, heating or feed drastically reduce profits. An increase in the turnover limit is therefore necessary so that our family farms can continue to ensure a healthy and rapid supply for Austria without additional bureaucratic effort."

Barbara Neunteufel, authorized signatory at Mazars Austria

Relief also for small businesses and employees

In Mazars' view, measures to reduce the administrative burden should also come for other industries. The limit for the small business flat rate, for example, is 35,000 euros. Mazars also points out that with the automated valorization starting in 2023, the income tax rates, the deductible amounts, and the limit for the social security reimbursement will probably be automatically adjusted, but not the small business regulation, the commuter flat rate, or the mileage allowance. Here, too, an automated inflation adjustment is necessary, Mazars says.