Dear clients,
We would like to remind you of the deadline as of September 30, which is important for the following topics.
No claim interests for 2020 tax returns
No claim interests (Anspruchszinsen) have to be paid for income tax and corporation tax payments that are due on the basis of the 2020 tax assessments. Even if the tax assessments are issued after September 30, 2021. However this does not mean that the 2020 income or corporation tax returns do not have to be submitted in time. A taxpayer who was not represented by a tax advisor had to submit his tax return via FinanzOnline no later than June 30, 2021. If the tax return is submitted by a tax advisor as a representative for the client, the tax return can usually be filed later. These submission deadlines must be observed even if no claim interests are stipulated as for the year 2020. If the declaration is submitted late, the tax office can impose a late fee of up to 10% of the assessed tax.
Reduction requests for corporate tax and income tax prepayments
Do your tax advance payments for 2020 exceed the tax liability resulting from the expected taxable income for 2020? If yes you can apply for a reduction in advance payments for 2020 until September 30, 2021 at the latest. For this purpose, a comprehensible planning or forecast calculation for the probable income 2020 must be sent to the tax office together with the reduction request.
Reduction (increase) of the preliminary contribution basis of the SVS
The basis for calculating the provisional social security payments for the self-employed (SVS) is the “provisional contribution basis”. This “provisional contribution basis” is calculated on the income from the third calendar year preceding.
Is the final contribution base in the current year 2021 likely to be lower than the provisional contribution base? Then an application can be made to reduce the provisional contribution basis. In this reduction request (an increase is also possible in order to prevent high back payments) the probable amount of the final contribution basis for the current year must be indicated. In mathematical terms this is the summery of the income plus the paid social security contributions. The SVS recalculates your contributions based on this forecast.
There is no deadline for this and a reduction can be requested throughout the year. However, the reduction will only have an effect on the current year if it is requested by the 3rd quarter, i.e. by the end of September / beginning of October.
Input tax refund
The deadline for submitting input tax refund applications for 2020 for EU-based entrepreneurs in other EU countries ends on September 30, 2021.
The input tax refund application must be submitted via FinanzOnline. Since possible error messages are only sent with a delay, we recommend submitting them a few days before the end of the deadline.
Best Regards
Manfred Gross
Wien, September 2021
