Review Draft of the Tax Amendment Act 2023

Tax relief for the withdrawal of business buildings from business assets to private assets

In line with the existing regulation on the withdrawal of land, the withdrawal of buildings from business assets is also to be carried out at book value instead of at partial value. As a result, no hidden reserves of the building will be disclosed and taxed. As a result, the building tax allowance can also be waived in the event of the sale or discontinuation of a business.

Enabling a digital KESt exemption declaration

Those obliged to deduct capital gains tax (e.g. banks) do not have to deduct capital gains tax (KESt) on certain income if the recipients of the income declare in writing to the party obliged to deduct the tax that the income is to be recorded as business income (exemption declaration). Up to now, the exemption declaration has to be forwarded by the withholding agent to the tax office as a written copy. This analogous exemption declaration will now be replaced by a fully electronic data transfer between the banks obliged to withhold and the tax authorities ("digital exemption declaration").

Ensuring the Tax Dependence of Previously Transferred Hidden Reserves for Private Foundations

Private foundations have the option of transferring hidden reserves from the sale of a participation to a replacement participation, which involves a reduction of the acquisition costs of the replacement participation and thus ensures the intermediate tax liability in the event of a later sale of the replacement participation. With regard to capital increases of existing subsidiaries of private foundations, administrative practice and literature have attributed to this regulation a broader understanding of the term than the Administrative Court (VwGH) in a recent ruling.
Against this background, the transfer of hidden reserves is now expressly regulated for certain old cases in which, in line with administrative practice but contrary to the view of the VwGH, a transfer of hidden reserves was declared and a reduction of the acquisition costs of the replacement participation was assumed. This serves to safeguard the tax lability of these hidden reserves in the event of the subsequent sale of the replacement participation. The transitional regulation is to be applied retroactively as of the assessment for the calendar year 2001.

No invoice adjustment if the service was provided exclusively to end consumers

If entrepreneurs have stated a VAT amount in an invoice that they do not owe, they do not owe this amount on the basis of the invoice if, among other things, there is no risk to tax revenue because the service was provided exclusively to private end consumers. In this case, an invoice adjustment is not required.

Financial Crimes Act: Increase of the amounts of value relevant for jurisdiction and the limitation periods.

Due to high inflation and in order to strengthen administrative jurisdiction, the value amounts relevant for jurisdiction in the case of financial offenses will be raised from € 100,000 to € 150,000 (from € 50,000 to € 75,000 in the case of smuggling, etc.). The statute of limitations is to be ten years instead of five years in the future for tax fraud with a penalty-determining value exceeding € 500,000 and for cross-border VAT fraud.

Introduction of a transmission obligation for statutory social security institutions

In order to prevent the benefits of the New Business Start-Up Promotion Act (NeuFöG) from being claimed by bogus companies, the statutory social security institutions are to inform the tax authorities in the future if the employer claims exemption from certain wage contributions and ancillary wage costs under the NeuFöG. This early information is necessary in order to be able to identify any unlawfully claimed benefits as soon as possible and to carry out the corresponding control measures.