Dear Clients,
We would like to remind you of the deadline September 30, 2022 which is important for the following topics:
Entitlement interest (“Anspruchszinsen”) for the 2021 tax returns
Assessments of income or corporation tax 2021 are subject to special interest, the so-called "entitlement interest". This affects the outstanding tax returns for 2021.
Assessments of income or corporation tax 2021 which are done by the tax office after September 30, 2022 will cause interests at an annual interest rate of approximately 1.90%. This interest can be prevented by making an advance payment to the tax office no later than September 30, 2022 in the amount of the expected tax.
Only after completion of tax return 2021 is it possible for us to inform you about the expected amount of final tax payment. In order to avoid interest any existing tax liabilities should be paid to the tax office by September 30 at the latest. Please send us your tax documents for 2021 as soon as possible so that we can inform you about any additional tax payment.
It should be noted that you also have the option of using the tax office as a lender with an annual interest rate of around 1.90 %. This interest is not tax-deductible. In this case there is no immediate need for action.
If you pay the outstanding income or corporation tax liability 2021 to the tax office, please note the relevant purpose in the online banking program (e.g. "K 1-12/2021" or "E 1-12/2021") in order to ensure correct allocation of the payment.
Reduction requests for corporate tax and income tax prepayments
Do your tax advance payments for 2022 exceed the tax liability resulting from the expected taxable income for 2022? If yes you can apply for a reduction in advance payments for 2022 until September 30, 2022 at the latest. For this purpose a comprehensible planning or forecast calculation for the probable income 2022 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 preceeding.
Is the final contribution base in the current year 2022 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 2022 for EU-based entrepreneurs in other EU countries ends on September 30, 2022.
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
Vienna, September 2022
