SELF-EMPLOYED by zhouwenjuan

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									    THE BOOK FOR THE
SELF-EMPLOYED
 Tax guide for newly established enterprises




     Presented by the Federal Ministry of Finance
Attention
Throughout this brochure, to save space, terms such as
“entrepreneur“ etc., refer to both men and women. It
should be pointed out quite explicitly, however, that all
the statements and formulations in the regular “male”
form apply equally to both sexes.


Publication details


Owner and editor: Federal Ministry of Finance,
Division I/1 – Communications & Culture Affairs,
Himmelpfortgasse 8, A-1015 Vienna


Graphic layout and production
MgrafiX Grafik-Design GmbH, Martin Morauf
Cover photos: Buenos Dias


Printer:
Holzhausen Druck & Medien GmbH


English translation
Mag. Helmut Beitl, Directorate-General IV
(Federal Ministry of Finance)


2nd edition, Vienna 2004


Deadline: 15 June 2004


This brochure reflects the law as of 1 May 2004.
Any legal amendments as well as a current
download version are availabe to you on the
Internet at www.bmf.gv.at under “Steuern“ (taxes)
and “Publikationen“ (publications).
    THE BOOK FOR THE
SELF-EMPLOYED



 Tax guide for newly established enterprises
EDITORIAL

                                      Dear entrepreneur!



                                                  An increasing number of peo-      We need these stimuli for the influx and
                                                  ple take the risks of self-       establishment of new business in Austria
                                                  employment. Thus, in 2003         and consequently for the preservation and
                                                  alone approximately 28,200        creation of jobs. And reality obviously shows
                                                  enterprises were established,     that we are right. Since the cornerstones of
                                                  this is an increase of 9.4 %      the tax reform 2005 became known the
                                                  compared to 2002. This            Austrian Business Agency, Austria’s agency
                                                  record is attributable to the     for the influx of new business in Austria,
                                                  fact that over the last years     reported a tremendous 58 % increase in first
                                                  we have taken the right steps     inquiries from all over the world. First inqui-
                                                  to readjust Austrian financial    ries from Germany alone increased by 111 %,
                                                  and economic policy. We need      and not only large groups of enterprises but
                                                  people with initiative, effi-     especially medium-sized enterprises in all
                                                  cient business operation and      industries showed a lively interest in Austria
                                   a functioning market. And we want to             as a business location.
                                   assist you in properly preparing yourself so
                                   that you can start your business successful-     As a result of the reduction of corporation
                                   ly. This is what we want to offer you by         tax Austria has one of the top rankings in
                                   means of this guide, in particular against       Western Europe and thus remains competi-
                                   the background of a dynamic international        tive also after the enlargement to the East. A
                                                environment and the biggest         low tax burden for Austrian enterprises and
                                                enlargement in the history of       the self-emloyed means that more profits
                 “Don’t talk – but act!“,       the European Union on 1 May         are retained in enterprises which results in
    this is our motto. By means of the          2004.                               the creation of more jobs and increases the
       most comprehensive tax reform                                                purchasing power for households.
          04/05 in the Second Republic,         “Don’t talk – but act!“, this is
        the two packages to boost the           our motto. By means of the          People with business initiative who like chal-
          economy and the growth and            most comprehensive tax reform       lenges and have independent existence shall
            location package important          04/05 in the Second Republic,       develop freely. We enable this by creating an
                   measures were taken          the two packages to boost the       ideal framework: This also includes reform of
                  to strengthen growth.         economy and the growth and          the tax administration towards one of the
                                                location package important          most modern administrations of Europe. In
                                                measures were taken to              this way the citizens' contact with the ad-
                                   strengthen growth, improve the location for      ministration is improved significantly. We want
                                   business, reduce labour costs, improve the       for you: More efficiency and more service at
                                   equity capital basis of enterprises, increase    lower cost. In this sense we are extending
                                   purchasing power and promote fair taxation.      the FINANZOnline applications on the
                                   Enterprises will benefit from the reduction of   Internet. In addition to the option for elec-
                                   corporation tax from 34 % to 25 %, the           tronic assessment of employees, entreprises
                                   introduction of a modern group taxation          may now transmit electronically to the tax
                                   regime and the promotion in the area of          administration their preliminary VAT returns
4                                  research and development.                        beginning with the reporting period
01/2003, the recapitulative statement con-      We are firmly convinced that
cerning VAT for the reporting period begin-     we must do everything to facil-
ning with the first calendar quarter of 2003,   itate the road to self-employ-
and the annual returns concerning VAT,          ment for people who are initia-
income tax and corporation tax for the          tive and creative. Our updated
assessment period 2003. By means of             guide is a little contribution to
FINANZOnline we have taken innovative           this which offers you insight
steps towards service-oriented, cost-effec-     into basic questions of tax law
tive, flexible and efficient contacts between   and contains many hints and
the taxpayers and the tax office.               reference for further reading.




                                                                                                       We want for you:
                                                                                      More efficiency and more service
                                                                                     at lower cost. In this sense we are
                                                                                           extending the FINANZOnline
                                                                                           applications on the Internet.




We wish you stimulating reading.




Karl-Heinz Grasser                              Alfred Finz
Federal Minister of Finance                     State Secretary
                                                in the Federal Ministry of Finance

                                                                                                                           5
CONTENTS
       I.   Frequently asked questions           8   VI. Business accounting                  23
                                                     A. Survey of the methods of
                                                        determining profits                   23
       II. General                              10   B. Bookkeeping requirements and
       A. Homepage of the Ministry of Finance   10      thresholds for bookkeeping            23

       B. Procedural provisions                 11   C. Examination by field audits           24

       C. Other organisational measures         14   D. Retention requirements                24

       D. Cornerstones of the tax reform 05     15   E. Methods of determining profits
                                                        in detail                             25


       III. Tax reliefs
            for new enterprises                 16   VII. Income tax                          28
       A. Requirements for newly                     A. The concept of income                 28
          established businesses                16   B. Possibilities of using losses         29
       B. Requirements for transfers                 C. Special expenses and
          of businesses                         16      extraordinary burdens                 30
       C. Tax exemptions                        16   D. Tax rate schedule and tax credits     30
       D. Declaring the new business                 E. Tax credits for wage tax and
          and the transfer of business          17
                                                        prepayments of income tax             31
       E. Confirmation from the
                                                     F. Obligation to file an
          professional association              17
                                                        income tax return                     32
                                                     G. Assessment of income tax              32

       IV. Electronic tax returns               18
       A. Performance and advantages
                                                     VIII. Corporation tax                    34
          of FINANZOnline                       18
                                                     A. Tax rate                              34
       B. Registering at FINANZOnline           18
                                                     B. Employment as managing director       34
       C. Filing tax returns via FINANZOnline   18
                                                     C. Tax burden compared with income tax 35
       D. Electronic delivery of notice
          of assessment                         19   D. Corporation tax return                35
       E. Calculation of tax on
          an anonymous basis                    19
       F. Information on FINANZOnline           19   IX. Value added tax                      36
                                                     A. Taxable events                        36
                                                     B. Tax exemptions                        36
       V. Time limits and due dates             20   C. Supplies of goods and
       A. Tax returns                           20      services carried out free of charge   37
       B. Transfer of wage sheets               20   D. Taxable amount                        37
       C. Payments of additional tax            20   E. Amount of value added tax             38
6      D. The 15th is tax payment day           21   F. Small entrepreneurs                   38
G. Taxation of advance payments      38   XIV. Legal protection and reliefs   72
H. Deduction of input tax            39   A. Appeal                           72
I.   Export supplies of goods        43   B. Extension of time for payment    73
J. Chargeability of tax              44   C. Release from payment of tax      74
K. Preliminary VAT return            45
L. Import VAT                        46
M. Supplies within the EU            46   XV. Forms                           75
N. Obligation to file a VAT return   49
O. Assessment of VAT                 50
                                          XVI. Index                          97


X. Other taxes                       51
A. Standard consumption levy         51
B. Tax on motor vehicles             51
C. Advertising levy                  51
D. Electricity levy                  51
E. Natural gas levy                  51
F. Coal levy                         51
G. Refund of energy levy             51



XI. Business expenses                53
A. Definition                        53
B. Documentation                     53
C. Start-up expenses                 54
D. Non-deductible expenses           54
E. Examples of business expenses     55



XII. Business receipts               62



XIII. Lump sum taxation              63
A. Lump sum deduction of
   business expenses                 63
B. Lump sum deduction of input tax   67
C. Special lump sum taxation
   for certain industries            70
                                                                                   7
I. FREQUENTLY ASKED QUESTIONS

        • What are the obligations vis-à-vis the tax       • What type of taxes must be paid
          authorities for those who establish a new          by the entrepreneur?
          business?
                                                           The taxes payable to the tax office are pri-
        It is mandatory to give notice within one          marily payments of income tax and value
        month after the commencement of the busi-          added tax. Companies (e.g. limited liability
        ness activity and to apply for a taxpayer          companies) pay corporation tax. Entrepre-
        identification number.                             neurs who employ employees in their enter-
                                        (see p. 13)        prises also have to pay wage-related taxes.
                                                                                  (see p. 21, 31, 35, 45)
        • Which tax office is responsible
          for new businesses?                              • How is income tax and
                                                             corporation tax paid?
        Generally, the competent tax office is the
        office within whose jurisdiction the manage-       With regard to theses taxes it is at first
        ment of the enterprise is situated, i.e. the so-   necessary to make quarterly prepayments.
        called tax office responsible for the assess-      After filing the income tax or corporation tax
        ment of the business.                              return the tax office determines the final tax
                                            (see p. 13)    burden, the prepayments being credited.
                                                                                   (see p. 21, 31, 35, 45)
        • Are there any tax reliefs for new businesses?
                                                           • Does an entrepreneur always
        Yes! The Act on the Promotion of New Busi-           have to pay value added tax?
        nesses provides tax reliefs for the establish-
        ment of new businesses with effect from            No! Entrepreneurs whose turnover does not
        2 May 1999 and for transfers of businesses         exceed EUR 22,000 (“small entrepreneurs“)
        with effect from 1 January 2002.                   are exempted from value added tax.
                                           (see p. 16)                                     (see p. 38)

        • Does an entrepreneur need                        • What does the concept
          a “book-keeping system“?                           of “input tax“ mean?

        As a rule, for the purposes of determining         “Input tax“ means the value added tax in-
        profits the business transactions have to be       voiced by an entrepreneur (supplier) to another
        recorded by means of cash accounting or            entrepreneur. The other entrepreneur may
        double-entry book-keeping.                         deduct this input tax from his own value
                                          (see p. 23)      added tax liability.
                                                                                               (see p. 39)
        • Is it possible to apply a simplified method
          of determining profits?

        Yes, under certain conditions it is possible to
        apply various forms of lump sum taxation.
                                       (see p. 27, 63)

8
• How is value added tax paid?                    • What can you do against a notice of
                                                    assessment issued by your tax office?
The VAT payable, i.e. the differential amount
between the VAT due and the deductible            You may lodge an appeal against the notice.
input tax, must be paid to the tax office on      The essential thing is to observe the time
a monthly basis – in special cases on a           limit for lodging the appeal. The period is
quarterly basis. A value added tax credit,        one month from the date on which the no-
which arises in the case of a surplus of input    tice of assessment was served!
tax, must be reported to the tax office re-                                        (see p. 72)
sponsible for the assessment of the business
via FINANZOnline or by means of form U 30.        • Are there special forms
                                    (see p. 45)     for new businesses?

• Who needs a value added tax                     For a new business forms relating to proce-
  identification number?                          dural law and the Act on the Promotion of New
                                                  Businesses are of particular importance. How-
If you make taxable supplies to entrepre-         ever, on our homepage at www.bmf.gv.at
neurs entitled to deduction of input tax or if    many other forms are available for you.
you enter into business relations with States                                         (see p. 75)
of the EU, you need a value added tax iden-
tification number.                                • Is it possible to file tax returns
                                   (see p. 46)      electronically?

• Is there a simplified system of                 Yes! From the assessment year 2003 certain
  determining deductible input tax?               tax returns (VAT return, income tax return
                                                  and corporation tax return) may or must be
Yes, under certain conditions it is possible to   filed electronically via www.bmf.gv.at under
apply various forms of lump sum taxation.         FINANZOnline.
                               (see p. 27, 63)                                      (see p. 18)

• Is an expense always deductible                 • Is is possible to calculate the tax
  as a business expense?                            on an “anonymous“ basis?

No. Expenses are deductible as business           Yes, via www.bmf.gv.at under FINANZOnline
expenses only if the expenses are in connec-      you may use this service even without regis-
tion with the business activity and, from the     tration.
perspective of the entrepreneur, if they serve                                     (see p. 19)
business purposes and the deduction is not
disallowed under Sec. 20 ITA.
                                    (see p. 53)




                                                                                                    9
II. GENERAL

                             You have already overcome the biggest                In addition to income tax (or corporation
                             obstacle, i.e. to find a good idea which in-         tax) the entrepreneur must also pay value
                             duces you to establish an enterprise. Possibly,      added tax. In cases where there are
                             up to now you have worked as a trainee               employees wage-related taxes (such as
                             lawyer or as a physician at a hospital and           wage tax, employer’s contribution and
                                           now you would like to risk the         surcharge on employer’s contribution,
                                           leap into self-employment.             municipal tax) must be paid for them.
  Our aim is to make you familiar          Perhaps you have succeeded in          Depending on the industry in which you
   with the most important rules           deriving additional income as a        operate there may be the obligation to pay
 so that communication with the            lecturer at seminars or as an          additional taxes (e.g. chamber contribu-
 tax authorities is uncomplicated          author of technical literature         tion, tax on motor vehicles, standard con-
     and effective to the greatest         along with your employment.            sumption levy).
         possible extent from the          Whatever the reason for your
          commencement of your             ambitions to start your own            This manual should serve as a guide for you
               business activities.        business may be. Before you            to make yourself familiar with the most
                                           start earning your money it is         important tax terms and at the same time
                                           first of all necessary to deal         aims at indicating your rights and obliga-
                             with a number of authorities.                        tions. Of course this is only an introduction
                                                                                  to tax law. Therefore, this guide cannot be
                                 In addition to the authority responsible for     a substitute for technical advice taking
                                 registration of a trade, the social security     into account specific situations.
                                 institution and your profession's representa-
                                 tive body (e.g. the professional organisations   For this reason this book also indicates the
                                 of doctors and lawyers, the Economic             sources of the relevant laws. Also, we
                                 Chamber) the most important institution is       would like to point out that the employees
                                 your competent tax office. Those who are         of your tax office are pleased to be at your
                                 employed have little contact with the tax        disposal for providing further information
                                 office because in this case it is the employer   in your personal tax affairs.
                                 or entrepreneur who has to comply with the
                                 tax obligations. In the case of employees
                                 income tax is generally calculated and paid      A. Homepage of the
                                 by way of withholding of wage tax. This is       Ministry of Finance
                                 the responsibility of the respective employer.
                                                                                  You receive quick answers to many ques-
                                                                                  tions at any time without having to appear
                                                                                  personally at the authorities. Just visit us on
                                                                                  the Internet at www.bmf.gv.at where you
                                                                                  will find detailed information on taxes,
                                                                                  customs duties and many other things. Look
                                                                                  for yourself!
The following menu options offer inter-             which form they are available.
esting information for the establishment
of a business:                                      • “Kontakt“ (contact): By means of the
                                                    so-called “tax offices guide“ – select menu
• “Steuern“ (taxes): On these pages you             option “tax offices“ – you can find out your
find things you should know about taxes of          competent tax office. And that's how it
any kind, guidelines, new laws, etc.                works: Simply click a province or the capital
                                                    of a province on the map of Austria or make
The specific search                                 your choice by making the respective entries.
The menu option “Richtlinien Steuerrecht“           This data must be in line with your home or
(guidelines on tax law) offers you a compre-        business address. For details
hensive on-line reference work on tax law           see chapter on “The obligation
and, moreover, an off-line version for down-        to report within one month“,                      The virtual tax office
loading to your PC. The following guidelines        p. 13.                                  at www.bmf.gv.at does not know
are available:                                                                                                 office hours.
• wage tax guidelines (LStR) 2002,                  • “FAQs“: Provide answers                           Your visit will pay!
• income tax (EStR) and value added tax             to the most frequently asked
    guidelines (UStR) 2000,                         questions, such as taxes,
• guidelines on corporation tax (KStR),             customs duties, forms, FINANZOnline, etc.
    associations (VereinR) and foundations
    (StiftR) 2001,
• restructuring tax guidelines                      B. Procedural
    (UmgrR) 2002,                                   provisions
• investment funds guidlines
    (InvR) 2003 and                                 Every subject has its specific
• guidelines on tax collection (RAE).               technical terms, and this is            The FTPA governs the whole tax
                                                    also true for tax law. Therefore      procedure, among other things it
If you click on the desired file – LStR, EStR,      it is first of all necessary to                 lays down the following:
UStR, KStR, VereinR, StiftR, UmgrR, InvR and        make yourself familiar with                the dealings between the tax
RAE –, then first of all a table of contents will   the terms used by the tax law-             authorities, parties and other
appear which is arranged by section. If this        maker. The term “taxpayer”               persons; the general provisions
survey does not help you any further, please        should be explained briefly.           applying to the levying of taxes;
try the “search” option where you can choose        Under the Federal Tax Pro-                the assessment and collection
between “text” and “paragraphs”. In case you        cedure Act (FTPA) taxpayer              of taxes; the mechanisms safe-
do not know the paragraph, click on “text”. By      means a person who is a               guarding legal protection against
using the “search and find” option you can          potential tax debtor in a tax               arbitrary acts by authorities.
enter a keyword. There appear all passages of       procedure (Sec. 77 (1) FTPA).
the respective guideline which include the
term you are searching for. The on-line ver-        What is essential is that a tax-
sion of the guidelines thus enables the specific    payer is regarded as a party according to
search for particular subjects.                     Sec. 78 (1) FTPA, which involves a number of
                                                    rights and obligations for him. If you want
• “Formulare“ (forms): You can choose be-           to be successful in establishing your busi-
tween tax and customs forms and forms for           ness, you should in any case know your
FINANZOnline. The chapter on “Forms” p. 75          rights and obligations as an entrepreneur
shows you which types of forms exist and in         very thoroughly.                                                             11
II. GENERAL

                                     The entrepreneur’s rights                         to act as representatives. The tax authorities
                                                                                       accept as “tax representatives” only repre-
                                     • right to access to files                        sentatives who are authorized to act as such
                                       (Sec. 90 FTPA)                                  by profession, i.e. primarily chartered
                                     • entitlement to legal advice                     accountants, lawyers and notaries. If you
                                       (Sec. 113 FTPA)                                 authorize a “tax representative” to act on
                                     • right to be heard                               your behalf, it is also important for the tax
                                       (Sec. 115 (2) FTPA)                             authority to know the scope of such power
                                     • entitlement to a fair procedure                 of attorney. In particular as regards the ques-
                                       (Sec. 115 (3) FTPA)                             tion whether official documents are to be
                                     • entitlement to make an application for          served on the “tax representative” (address
                                       reopening the case (Sec. 303 (1) FTPA)          for service) or whether there is an author-
                                     • entitlement to make an application for          ization to dispose of credit balances on a tax
                                       restitutio in integrum (Sec. 308 FTPA)          account and to receive amounts of money
                                     • entitlement to make an application for          (authority to act in money matters and
                                       transference of responsibility, i.e. a so-      cash matters).
                                       called “application for devolution”
                                       (Sec. 311 FTPA)                                 Fair procedure
                                                                                       In the course of the tax procedure it is abso-
                                     The following concepts of procedural law are      lutely necessary that the taxpayer’s right to
                                     explained in more detail in order to give you a   be heard is safeguarded at any stage
                                     better understanding:                             (Sec. 115 (2) FTPA). Otherwise the adminis-
                                                                                       trative act may be contested on the grounds
                                  Legal advice                                         of a breach of formal requirements. You are
                                  Not every entrepreneur authorizes a profes-          entitled to comment on the fact findings of
                                  sional representative to exercise his rights.        the tax authorities. Before a final notice is
                                  On request (conclusive behaviour is suffi-           issued the tax authorities must notify you of
                                  cient, a formal application is not necessary)        the evidence and the result of the taking of
                                  the tax authority must give the necessary            evidence so that you can give your opinion.
                                  guidance to taxpayers who are not repre-
                                  sented so that they can take the procedural          It is the task of the tax authorities to
                                  steps (Sec. 113 FTPA). The entitlement to            examine and to appraise information pro-
                                  legal advice covers only procedural ques-            vided by the tax citizen and circumstances
                                  tions. There is no obligation to provide legal       already known to the authorities (e.g. con-
                                               information on how to appraise          tents of files) even if it is to the benefit of
                                               specific facts for tax purposes         the taxpayer (Sec. 115 (3) FTPA). For in-
         The tax authorities accept as         or on the tax consequences              stance, the deduction of losses according to
      “tax representatives“ only repre-        resulting from a certain behav-         Sec. 18 (6) ITA must be effected ex officio.
     sentatives who are authorized to          iour.                                   A request by the taxpayer is not necessary
         act as such by profession, i.e.                                               (you find detailed information in the chap-
     primarily chartered accountants,          Tax representative                      ter on “Carry-forward of losses/deduction
                 lawyers and notaries.         Talking of legal information.           of losses”, p. 29).
                                               You are entitled to choose your
                                               own tax representative! How-            Thus it is the aim of the law to determine the
                                  ever, again and again also the names of per-         tax base properly instead of arriving at a tax
12                                sons become known who are not authorized             base which is as high as possible.
The entrepreneur’s obligations                    Questionnaire
                                                  Regardless of whether you prefer to deal with
However, the taxpayer is not only equipped        the authorities in writing or orally, you must
with rights but also with obligations which       comply with certain formalities! Depending
may be summed up by the term “obligation          on the legal form by which you operate your
to cooperate“. This term includes:                business you must fill in a spe-
                                                  cial form (also this work will be
• obligation of disclosure and obligation         done by any “tax representa-                      All forms used by the tax
  to make true statements                         tive”). The following three forms          administration show a short de-
  (Sec. 119 FTPA)                                 are of relevance:                       nomination in the left-hand corner
• obligation to report                                                                       below, e.g. “Verf 24“ (Verf stands
  (Secs. 120 and 121 FTPA)                        • Verf 15 for companies,                 for procedure). You also find these
• keeping books or records                                                                            forms at www.bmf.gv.at
  (Secs. 124 to 132 FTPA)                         • Verf 16 for partnerships,                      under “Formulare“ (forms).
• filing of tax returns                               or
  (Secs. 133 to 140 FTPA)
• providing assistance in official acts           • Verf 24 for individuals.
  (Sec. 141 FTPA)
• obligation to cooperate in tax
  examinations (Sec. 147 FTPA)                    Estimates of turnover and profit
                                                  In case you report your new business in
                                                  writing, the respective form will be sent to
Obligation to report within one month             you. In case you appear personally at your
Every entrepreneur is obliged to report the       tax office, you will receive the forms there
establishment of his business to the compe-       and the forms must be returned within the
tent tax office within one month. This imme-      time limit set by the tax office.
diately raises the question which tax office is
the competent one. In order to find out your      An essential part of the questionnaires deals
competent tax office you have two possi-          with the estimated turnover and profit of the
bilities:                                         year in which you establish your business
                                                  and the following year. Since nobody knows
• you either call any tax office and make         the amount of annual turnover and profit in
  inquiries, or                                   the first year and the following year, these
                                                  figures can only be estimated. You should
• you use the so-called “tax offices              pay special attention to the profit since this
  guide“ (for details see chapter on “The         profit will be the basis for the prepayments
  homepage of the Ministry of Finance“,           of income tax (for details see “Prepayments
  p. 10).                                         of income tax“, p. 31). As a result of exten-
                                                  sive investments, which are necessary for
There are no formal requirements for report-      some newly established enterprises, even a
ing. A formless notice in which you inform        loss may be incurred in the early stage
about the establishment of your business          (“start-up loss“).
and ask for assignment of a taxpayer identi-
fication number is sufficient. Reporting may
be effected in writing or orally, either by
yourself or by your “tax representative“.                                                                                         13
II. GENERAL

                                      C. Other organisational                          etc.) you send to the tax office. It is no
                                      measures                                         extraordinary thing at all if, in the course
                                                                                       of registration of a new enterprise, a field
                                      VAT identification number                        officer of the tax office pays a visit to the
                                                                                       business in question. Such a first on-site
                                      If you make taxable supplies to entrepre-        visit undoubtedly offers a better picture to
                                      neurs entitled to deduction of input tax or if   the authority than just judging things from
                                      you enter into business relations with States    the desk.
                                      of the EU, you need a value added tax iden-
                                      tification number. You can apply for this        Tax account
                                      number when filling in questionnaires Verf
                                      15, 16 or 24 (for details see “VAT identifi-     Once you have been registered you own an
                                      cation number“, p. 46).                          account with your tax office. The tax au-
                                                                                       thority opens a tax account under your
                                      Signature card                                   name and your taxpayer identification
                                      and proof of activity                            number. Subsequently all payments, e.g. for
                                                                                       value added tax, income tax, corporation
                                 If your business has a managing director, a           tax, wage-related taxes, standard con-
                                 holder of a general power of attorney, or a           sumption levy, etc. must be made to this
                                 holder of a specific power of attorney, you           account. The posting of the amounts as well
                                 are requested to submit a signature card.             as the whole administration of accounts
                                 This is the purpose of form Verf 26 which you         (Sec. 213 FTPA) in the tax office is effected
                                 obtain at www.bmf.gv.at under “Formulare“             by the department responsible for “securing
                                 (forms). Since not only serious entrepreneurs         tax“ (tax collection and accounting). Re-
                                 operate in business life, the tax authorities are     ported or assessed taxes are entered as a
                                 cautious in order to protect you personally           debit, the corresponding payments are
                                               by requesting a registration form,      entered as a credit. The tax account activi-
                                               proof of identity (passport,            ty is analogous to a bank account activity.
       For instance, lease agreements          identity card), an opening              In addition to arrears (debts) there may also
         for the business in operation,        balance sheet as well as proof          appear credit balances which is more
     reporting of employees, outgoing          of activity in addition to forms        pleasant to you. If an account shows a
       invoices, or cash books may be          Verf 15, 16 or 24.                      credit balance, it is possible to use such
        requested as proof of activity.                                                credit balance immediately to cover any
                                               Assigning a taxpayer                    future tax. You can see the account
                                               identification number                   administration via FINANZOnline under
                                                                                       Abfragen/Steuerkonto (queries/tax ac-
                                      After you have been registered with the tax      count).
                                      office things take their course. The tax au-
                                      thority assigns an identification key con-       In the case of a credit balance it is, among
                                      sisting of a two-digit tax office number         other things, possible to apply for refund,
                                      and a seven-digit taxpayer identification        i.e. transfer to a bank account which you
                                      number, and opens a new tax file. You are        have to specify (Sec. 239 FTPA). You can
                                      notified of the identification key. The          also submit a repayment claim electroni-
                                      purpose of this key is to identify you and       cally via FINANZOnline under Eingaben/
                                      therefore it should be indicated on all          Anträge/Rückzahlung (letters/applications/
14                                    documents (pieces of writing, payslips,          repayment).
Account statements                                 The tax reform 2005 will
                                                   introduce the following significant
Just as you receive account statements             changes for enterprises:
from a bank, your tax office regularly
sends you – free of charge – numbered              • Big reform of the income tax/wage tax
account statements which inform you                  rate schedule: the annual gross income
about all account activities, the due dates          is completely exempt from
for payment of tax and your current                  tax for employees deriving
balance. Every account statement con-                EUR 15,770, for pension-              The tax reform 2005 will result
tains, among other things, the line “new             ers deriving EUR 13,500,                  in a relief of more than EUR
status of account“. So you can see if there          and for self-employed            2.5 billion so that in total there will
are arrears, if there is a credit balance or if      persons derving EUR                  be a net relief of more than EUR
the account is balanced.                             10,000. The tax rate                  3 billion for all income earners
                                                     schedule consists of                                    and enterprises.
Annual summary                                       average tax rates.

As an additional service, you may make a           • The corporation tax rate is significantly
query about an annual summary via                    reduced from 34 % to 25 %. The tax
FINANZOnline. The annual summary con-                base is broadened by abolishing the
tains a survey of all entries arranged by type       regime of interest on the increase in
of tax.                                              equity capital and by abolishing tax-
                                                     exempt roll-over of capital gains.
 Note:
 You find more information on                      • The existing regime of group taxation
 FINANZOnline in the chapter on                      (Organschaft) is substituted for a
 “Electronic tax returns“, p. 18 and on the          modern and internationally attractive
 Internet at www.bmf.gv.at under                     group taxation regime.
 “FINANZOnline“.
                                                   • The tax deductibility of a certain insur-
                                                     ance technical reserve is improved.
D. Cornerstones
of the tax reform 05                               • The excise duty on sparkling wines is
                                                     “abolished“ (zero rate) and the excise
The tax reform 2004/2005 provides benefits           duty on beer is reduced.
to taxpayers subject to wage tax and income
tax as well as to Austrian businesses. The first   • Fuel (diesel) needed for agriculture is
stage of the tax reform took effect in 2004          taxed favourably.
which resulted in a net relief of approximate-
ly EUR 500 million. The tax reform 2005 will        Please note:
result in a relief of more than EUR 2.5 billion     This brochure reflects the law as of 1 May
so that in total there will be a net relief of      2004. The changes by the tax reform law
more than EUR 3 billion for all income              2005 have not yet been included in this
earners and enterprises.                            version.



                                                                                                                                15
III. TAX RELIEFS
FOR NEW ENTERPRISES
                                 For newly established businesses and              B. Requirements for
                                 transfers of businesses the Act on the Pro-       transfers of businesses
                                 motion of New Businesses (Neugründungs-
                                 förderungsgesetz - NEUFÖG) provides for           • A business (sole proprietor and shares
                                              tax reliefs. The reliefs apply to      held in partnerships and companies) is
                                              newly established businesses           transferred for consideration or without
     For newly established businesses         from 2 May 1999 and to                 consideration.
           and transfers of businesses        transfers of businesses from
          the Act on the Promotion of         1 January 2002.                      • There is a change in the person of the
     New Businesses (Neugründungs-                                                   business owner who has had a domi-
         förderungsgesetz - NEUFÖG)           In order to benefit from tax re-       nant position in the management.
               provides for tax reliefs.      liefs within the meaning of the
                                              NEUFÖG certain requirements          • The owner of the business has not
                                              must be met.                           carried out any business activities in a
                                                                                     comparably dominant manner so far.

                                     A. Requirements for newly
                                     established businesses                        C. Tax exemptions

                                     • A new business is set up by creating a      In the course of the establishment of your
                                       business structure which has not existed    new business you do not have to pay the
                                       so far.                                     following costs:

                                     • The income derived is business income       • stamp duties and federal
                                       within the meaning of Sec. 2 (3) (1)          administrative levies;
                                       to (3) ITA.
                                                                                   • real estate transfer tax for the transfer of
                                     • The owner of the business (as an indi-        real estate on the basis of the articles of
                                       vidual or as a legal person) has not          association or the partnership agreement;
                                       carried out any business activities in a
                                       comparably dominant manner so far.          • court fees for registration in the
                                                                                     commercial register;
                                     • A business which already exists is not
                                       merely changed with regard to its legal     • court fees for registration in the land
                                       form.                                         register for the acquisition of ownership
                                                                                     in order to transfer real estate on the
                                     • A business which already exists is not        basis of the articles of association or
                                       merely changed with regard to the owner.      the partnership agreement;

                                     • The established business structure is not   • capital duty for the acquisition of rights
                                       changed in the calendar month in which        in a company;
                                       the new business is established and in
                                       the following eleven calendar months        • certain taxes on wages (employer’s con-
                                       by expansion through incorporation of         tributions to the Family Burdens Equal-
                                       other businesses, or of separate divi-        isation Fund, surcharges on employer’s
16                                     sions of businesses, which already exist.     contribution, contributions for the pro-
    motion of residential building, contribu-           E. Confirmation from the
    tions to statutory accident insurance)              professional association
    which are payable in the calendar month
    in which the new business is established            In addition, the statutory professional asso-
    and in the following eleven calendar                ciation must certify on form “NeuFö 1“ (in
    months for persons employed (employees).            the case of new businesses) or “NeuFö 3“ (in
                                                        the case of transfers of businesses) that
In the course of the transfer of your business          advice has been given on the new business
you do not have to pay the following costs:             or the transfer of business. Where the owner
                                                        of the business cannot be attributed to a
• stamp duties and federal                              professional association, advice must be
  administrative levies;                                sought at the Social Security
                                                        Institution for Traders. No
• court fees for registration in the                    advice is necessary where only                  You find forms “NeuFö 1“
  commercial register;                                  exemption from stamp duties               and “NeuFö 3“ at www.bmf.gv.at
                                                        and federal administrative                     under “Formulare“ (forms).
• court fees for registration in the land               levies is claimed.
  register for the acquisition of ownership
  in order to transfer real estate on the               In order to claim exemption from stamp
  basis of the articles of association or               duties, federal administrative levies, real
  the partnership agreement;                            estate transfer tax, court fees and capital
                                                        duty, the declaration must be submitted to
• capital duty for the acquisition of rights            the authorities which may be concerned
  in a company;                                         (e.g. tax office, court, chief local govern-
                                                        ment office, municipal administration,
• real estate transfer tax is not levied if             governor). Submitting the declaration to
  the taxable amount does not exceed                    the authorities concerned has the effect
  EUR 75,000.                                           that no taxes, fees, etc. are levied. In order
                                                        to qualify for exemption from employer’s
In the case of newly established businesses             contributions and surcharges on employ-
and transfers of businesses recapture of tax            er’s contribution, the declaration must be
may occur in certain circumstances (e.g. in             included in the records and must be sub-
the case of sale or cessation of the business           mitted to the tax office responsible for the
within five years after transfer of business).          assessment of the business, or to the com-
                                                        petent regional social security institution
                                                        for exemption from contributions for the
D. Declaring the                                        promotion of residential building and con-
new business and                                        tributions to statutory accident insurance.
the transfer of business

In order to claim the reliefs it is necessary to sign
either the “declaration of new business“ or the
“declaration of transfer of business (or separate
division of business)“ and submit such declara-
tion to the competent authorities or statutory
professional associations (Sec. 4 NEUFÖG).                                                                                          17
IV. ELECTRONIC TAX RETURNS

                                             By means of FINANZOnline the        • Extended date for filing of annual
     You can deal comfortably with the       office goes to the entrepreneur.      returns: 30 June of the following year
           authorities by a mouse click      You can deal comfortably with
     from every internet access around       the authorities by a mouse click    • No special software
            the clock at www.bmf.gv.at       from every internet access around
                 under “FINANZOnline“.       the clock at www.bmf.gv.at          • Comfortable user guidance
                                             under “FINANZOnline“.                 (online assistance, hotline)

                                                                                 • Handicapped accessible application
                                 A. Performance and
                                 advantages
                                 of FINANZOnline                                 B. Registering at
                                                                                 FINANZOnline
                                 • Free-of-charge use around the clock
                                                                                 Sole proprietors or legal representatives of
                                 • Dealing comfortably with the authorities      companies (e.g. management board) must
                                   by a mouse click from every internet          submit the following documents to the tax
                                   access                                        office:

                                 • Possibility of changing basic data            • Completely filled in registration form
                                   concerning the entrepreneur at any              FON 1,
                                   time, e.g. address, bank connection,
                                   e-mail address                                • Proof of authority for representation
                                                                                   under company law (e.g. abstract from
                                 • Up-to-date queries concerning your              the commerial register, articles of
                                   tax account and tax file (e.g. account          association) and
                                   balance, wage sheet)
                                                                                 • Official photo identification card
                                 • Retrieval of annual summary                     (driving licence, passport or identity
                                                                                   card).
                                 • Electronic repayment claims

                                 • Assessment notice is delivered to your        C. Filing tax returns
                                   personal electronic mail box (DataBox)        via FINANZOnline
                                   including e-mail notice
                                                                                 As a principle, returns must be transmitted
                                 • Queries concerning the VAT                    electronically, except where electronic
                                   identification number                         transmission is unacceptable because of lack
                                                                                 of technical equipment. It is only under such
                                 • Electronic confirmation of the                circumstances that the use of official forms
                                   validity of a VAT identification              is still allowed. In addition, taxpayers who
                                   number                                        file returns by themselves – i.e. taxpayers
                                                                                 who generally do not have a tax representa-
                                 • Independent user administration               tive – are allowed to file a tax return on
                                                                                 paper if their supplies made in the previous
18                               • Tax calculation on an anonymous basis         year do not exceed EUR 100,000 Euro.
Attachments                                       F. Information on
                                                  FINANZOnline
It is no longer necessary to file attachments,
documents and cash accounting statements          You find general and group-targeted infor-
at the time when filing the tax return, but       mation on the online procedure directly on
only when this is requested by the tax office.    the Internet at www.bmf.gv.at under
However, retain your documents for seven          “FINANZOnline“. FINANZOnline itself pro-
years.                                            vides detailed guidance on the procedure.
                                                  Changes are communicated in the form of
 Please note:                                     news.
 Balance sheets and profit and loss
 accounts must still be sent to the tax of-       Also, we are at your disposal over the tele-
 fice at the moment of filing the tax return.     phone at 0810/22 11 00 from Monday to
                                                  Friday from 8.00 am to 6.00 pm all over
                                                  Austria at local rates.
D. Electronic delivery
of notice of assessment                            Please note:
                                                   We have also published for you a bro-
On request notices of assessment may be            chure concerning FINANZOnline. You may
delivered via FINANZOnline to your DataBox         order the brochure free of charge at
(“electronic mail box“). For this purpose it is    www.bmf.gv.at under “Publikationen“
necessary to activate electronic delivery via      (publications) or download an up-to-date
FINANZOnline.                                      version to your PC.

 Please note:
 The notice of assessment is deemed to
 have been delivered when it is received in
 the DataBox. This is essential with regard
 to triggering time limits, payments
 of additional tax, appeal. Indicate your
 e-mail address in the basic data, then you
 will receive information on the delivery
 of a notice of assessment to your
 DataBox.



E. Calculation of tax
on an anonymous basis

You may use this service free of charge with-
out registration via www.bmf.gv.at under
“FINANZOnline“.




                                                                                                 19
V. TIME LIMITS AND DUE DATES

                          As an entrepreneur you always have to              be done, in principle, by electronic transfer
                          observe time limits and due dates, also in         by the end of February of the following
                          connection with your tax office.                   year. The electronic transfer is effected via
                                                                             www.elda.at (not via FINANZOnline).

                          A. Tax returns                                     Where an employment is terminated, the
                                                                             wage sheet must be transferred by 15 of the
                          Annual tax returns (e.g. for income tax, value     following month (it is not necessary to
                          added tax and corporation tax) must be filed       transfer an additional “annual wage sheet“
                          with the tax office by 30 April of the fol-        for this employee!).
                          lowing year (Sec. 134 (1) FTPA). Where annual
                          tax returns are filed electronically via           Where electronic transfer is not acceptable
                          FINANZOnline, this period is extended to           to the employer because of lack of technical
                          30 June of the following year. These periods       equipment, it is mandatory to submit a wage
                          may be extended by the tax office if a found-      sheet on paper (L 16) to the tax office respon-
                          ed application is made. The filing periods         sible for the assessment of your business or
                          may also be extended where the taxpayer is         to the competent local health insurance
                          represented by a “tax representative“.             institution by the end of January of the fol-
                                                                             lowing year at the latest.
                          As a principle, returns must be transmitted
                          electronically, except where electronic            The employee can also claim a wage sheet
                          transmission is unacceptable because of            from you as his employer. However, since the
                          lack of technical equipment (no Internet           tax office has received the wage sheet data
                          connection). It is only under such circum-         from you this is only for the employee’s
                          stances that the use of official forms is still    information. He therefore does not need to
                          allowed. In addition, taxpayers who file           attach this wage sheet to his tax return in
                          returns by themselves – i.e. taxpayers who         the event of the employee’s assessment. On
                          generally do not have a tax representative –       termination of the employment you must in
                          are allowed to file a tax return on paper if       any case hand over a wage sheet to your
                          their supplies made in the previous year do        employee.
                          not exceed EUR 100,000.

                          In the case of late filing of a tax return it is   C. Payments of
                          possible to impose a late filing penalty which     additional tax
                          may amount up to 10 % of the assessed
                          amount of tax if the late filing is not excus-     In principle, the FTPA provides for a payment
                          able (Sec. 135 FTPA).                              period of one month with regard to addition-
                                                                             al taxes assessed on the basis of a notice of
                                                                             assessment unless other legal provisions
                                       B. Transfer of                        apply (Sec. 210 (1) FTPA). This period starts to
     You find wage sheet “L 16“        wage sheets                           run on the date when the notice of assess-
        at www.bmf.gv.at under                                               ment is notified, which is generally the date
            “Formulare“ (forms).     After the end of the calendar           when it is served by the post office. Usually
                                     year you, as an employer, must          the due date is already printed on a notice of
                                     submit to the tax office the            assessment of tax (e.g. notice of assessment
20                        wage sheets for your employees. This must          of income tax or corporation tax).
Where a notice of assessment of income tax          • taxes on wages such as wage tax
or corporation tax results in additional tax,         (Sec. 79 (1) ITA), employer’s contribution
with effect from the year 2000 interest on            (Sec. 43 (1) Family Burdens Equalisation
underpayment of tax (interest on addition-            Fund Act), surcharge on employer’s
al tax) is payable at the base rate plus 2 %          contribution;
(Sec. 205 FTPA). The period for which inter-
est is charged starts to run on 1 October of        • chamber contribution;
the following year and ends on the date                                                                          Taxes which are due on a
when the notice of assessment, which                • prepayments of income                                Saturday, Sunday, legal holiday,
results in additional tax, is issued. However,        tax (Sec. 45 (2) ITA)                                Good Friday or on 24 December
interest can be charged for a maximum peri-           and corporation tax                                 are payable on the next workday
od of 42 months. No interest on underpay-             (Sec. 24 (3) CTA);                                                (Sec. 210 (3) FTPA).
ment of tax is imposed if the interest is less
than EUR 50.                                        • municipal tax.

However, it is possible for you to avoid inte-   This “tax calendar“ offers you a survey of the
rest on underpayment of tax by making            due dates for payment, which are arranged
advance payments if such advance payments        according to the most important types of tax.
are made up to a sufficient
amount (amount of expected
                                     Type of tax  Amount                        Due date for payment                    Competent
additional tax) by the due date                                                                                         tax office
(i.e. by 1 October of the follow-
ing year), or to reduce accor-       value added 20 % or 10 % of                15th of the second                      where place of manage-
                                     tax          consideration (net amount)    calendar month                          ment is situated
dingly the basis for interest on
underpayment of tax.                 income tax   0 % to 50 % of income         15 February, 15 May                     where taxpayer
                                                                                15 August, 15 November                  is resident

You receive interest on              corporation     34 % of income                             15 February, 15 May,   where place of manage-
                                     tax                                                        15 August, 15 November ment is situated
overpayment of tax (equally at
the base rate plus 2 %) for          wage tax        0 % to 50 % of basis for          15th of the following            where place of manage-
                                                     wage tax (gross remuneration less calendar month                   ment is situated
amounts credited to your tax                         social security and wage tax allowances)
account, e.g. if the income tax
                                     employer’s      4.5 % of the total gross                   15th of the following   where place of manage-
liability is lower than the pre-     contribution    amount of wages                            calendar month          ment is situated
payment made. Interest on
                                     surcharge on 0.45 % to 0.53 % of the                       15th of the following   where place of manage-
additional tax is not deductible,    employer’s   total gross amount of                         calendar month          ment is situated
and interest on overpayment of       contribution wages
tax is not taxable!                  municipal tax 3 % of the basis                             15th of the following   municipality
                                                                                                calendar month
                                     chamber        0.3 % of deductible                         15 February, 15 May,   where place of manage-
D. The 15th is                       contribution I input VAT                                   15 August, 15 November ment is situated
tax payment day

The 15th of a month is the most important
date for all taxes, e.g.
                                                    Note that the taxes are payable on different
• prepayments of VAT                                dates. Whereas the VAT liability for a certain
  (Sec. 21 (1) VATA);                               month is payable on the 15th day of the                                                      21
V. TIME LIMITS AND DUE DATES

                                 second calendar month, wage-related taxes           Tolerance provisions
                                 are already due on the 15th day of the fol-
                                             lowing calendar month. In               In the case of bank transfers, postal orders
                                             addition, prepayments must be           and payments by crossed cheques the tax
     You find detailed information in        made in particular for income           office grants you a grace period of three
      the “tax calendar“, p. 21, under       tax and corporation tax which           days (Sec. 211 (2) and (3) FTPA). This means
          the due dates for payment.         are due on a quarterly basis,           that the delay has no legal consequences if
                                             i.e. on 15 February, 15 May,            the amount is credited to the tax office’s
                                             15 August and 15 November.              account within these three days.

                                   An account statement, which reminds you to         Example:
                                   make prepayments of income tax and corpo-          The prepayment of value added tax for
                                   ration tax, is sent to you approximately two       the calendar month of March is due on
                                   weeks in advance. In the case of self-assess-      15 May. If the money amount transferred
                                   ment taxes, such as value added tax, taxes         by the taxpayer is credited to the tax
                                   on wages and municipal tax, you yourself           office’s account by 18 May, then the
                                   must bear in mind the relevant due dates and       value added tax is deemed to have been
                                   the tax office does not send you any reminder.     paid by the due date.

                                   Payment of late                                   No late payment penalty is imposed if the
                                   payment penalties                                 default does not exceed five days and the
                                                                                     taxpayer, within the last six months before
                                   Your are usually obliged to pay a late pay-       the default occurs, has paid all his tax debts
                                   ment penalty of 2 % of the amount of tax if       by the due date. Neither Saturdays, Sundays,
                                   you do not pay a tax debt on the due date at      legal holidays, Good Friday or 24 December,
                                   the latest. In order to avoid any losses of       nor the grace period are to be included in the
                                   interest the tax authorities may impose a         five-day period (Sec. 217 (5) FTPA).
                                   total of three late payment penalties if the
                                   default lasts for a longer period (Sec. 217 (1)   At the taxpayer’s request late payment pen-
                                   to (3) FTPA).                                     alties must be reduced or must not be im-
                                                                                     posed in so far as the default is not due to a
                                   The first late payment penalty is 2 % of the      serious fault on his part. This is the case
                                   amount of tax not paid by the due date. If        where there is no serious fault on your part
                                   a tax debt is not paid on the due date at the     as regards self-assessment of taxes or failure
                                   latest, the amount outstanding is enforce-        to observe the due date for payment
                                   able. The second late payment penalty is          (Sec. 217 (7) FTPA). Where there is no fault
                                   payable for a tax which is not paid within        or in the case of simple negligence, the tax
                                   three months after the tax has become             authorities pardon this wrongful conduct on
                                   enforceable. If the tax is not paid within        request (there is no time limit for such
                                   three months after the obligation to pay          request). This is the case where value added
                                   the second late payment penalty has arisen,       tax was calculated on the basis of a wrong
                                   then the third late payment penalty is            but nevertheless arguable legal opinion.
                                   imposed. The second and third late payment
                                   penalties each amount to 1 % of the
                                   amount of tax not paid by the relevant due
22                                 date.
VI. BUSINESS ACCOUNTING

It is part of your obligations as an entrepre-   • partnerships (limited partnerships,
neur to keep books and records, which leads        general partnerships),
us to the subject of business accounting.
                                                 • companies (stock corporations,
Figures which serve as a starting point are,       limited liability companies),
among others, the turnover made and in
particular the profits which may be subject      • sole proprietors registered in the
to strong fluctuations. The entrepreneur           commercial register.
himself is responsible for determining all
the data which subsequently serves as a          The obligation to keep books under
basis for the tax authority. Therefore           commercial law does not apply to:
he must opt for a specific system of
accounting.                                      • small general partnerships, and

                                                 • small limited partnerships.
A. Survey of the methods
of determining profits                           Where there is already an obligation to
                                                 keep and maintain books under commercial
Since it primarily depends on the profits        law, such obligation must also be met
made, the term “methods of determining           for the purpose of tax collection (Sec. 124
profits“ is used in practice.                    FTPA).

There are three ways for you to provide your     Even where there is no obligation to keep
tax office with the tax base:                    books under the provisions of commercial
                                                 law (Secs. 189 to 243 Commercial Code),
• book-keeping and balance sheet                 entrepreneurs are never the
  (net worth comparison method,                  less obliged to keep books
  Sec. 4 (1) and Sec. 5 ITA),                    for businesses whose turnover            The entries in the books must
                                                 has exceeded EUR 400,000           be complete, correct, timely and in
• cash accounting                                (or EUR 600,000 in the case               the appropriate order (i.e. in
  (Sec. 4 (3) ITA), or                           of retailers of food prod-                     chronological order and
                                                 ucts and grocers) in two                          arranged by subject).
• lump sum taxation                              successive years (thresholds
  (Sec. 17 ITA).                                 for book-keeping, Sec. 125
                                                 FTPA).

B. Bookkeeping                                   Anyway, the liberal professions are in a
requirements and                                 better position. Regardless of the amount of
the thresholds for                               turnover, there is no obligation to keep
book-keeping                                     books but cash accounting is sufficient. For
                                                 details see chapter on “Cash accounting“,
Whether there is a legal obligation to keep      p. 26.
books depends upon the legal form of an
enterprise. In any case there is a legal obli-    Please note:
gation to keep books for all enterprises reg-     For liberal professions there is no obliga-
istered in the commercial register:               tion to keep books!                                                       23
VI. BUSINESS ACCOUNTING

                                        The following survey summarizes the organi-         • value added tax inspection
                                        sational forms of business accounting for             (Sec. 144 FTPA),
                                        traders:
                                                                                                    • examination of wage tax
                                                                                                      (Secs. 86 to 89 ITA).
 Legal form                  Turnover threshold              Method of accounting
 sole proprietors (non-      up to a turnover of             optional lump sum deduction,           You are obliged to co-operate
 traders and small mer-      EUR 220,000                     cash accounting or double-             in the course of a tax audit (Sec.
 chants), small partnerships                                 entry book-keeping possible            141 FTPA). The legal provision
 (small general partnerships
                                                                                                    requires that an appropriate room
 [OEG], small limited
 partnerships [KEG])                                                                                as well as the necessary means
                             up to a turnover of             optional cash accounting or            (lighting, heating, etc.) are made
                             EUR 400,000; in the case        double-entry book-keeping              available to the officials free
                             of retailers of food products   possible                               of charge.
                             and grocers up to a turn-
                             over of EUR 600,000
                                                                                                    A field audit on the business prem-
                             if the above turnover           double-entry book-keeping              ises is not possible or reasonable
                             thresholds are exceeded         is compulsory
                                                                                                    where there are no business prem-
 sole proprietors (full mer- no turnover threshold           double-entry book-keeping              ises, where the activities of the
 chants under Sec. 1 Com-                                    is always compulsory                   business are disturbed or the tax
 mercial Code) partnerships
 (general partnerships                                                                              auditor has inappropriate working
 [OHG], limited partnerships                                                                        conditions. In such cases the audit
 [KG], companies (limited                                                                           takes place in the office of your
 liability companies [GmbH],                                                                        “tax representative“ or in the
 stock corporations [AG])
                                                                                                    rooms of the tax authority.



                                                                                            D. Retention requirements
        If during the examination new                C. Examination
       facts or evidence emerge which                by field audits                        The obligation to retain books and records
        have been unknown to the tax                                                        applies to all book-keeping documents
          authority so far, it is possible           The keeping of books and               and records (accounts, documents, business
           to reopen the tax procedure               records not only serves for pur-       papers, statement of income and expenses,
                     (Sec. 303 (4) FTPA).            poses of determining profits by        etc.). The retention period is seven years.
                                                     the entrepreneur but also for          The period commences to run after the
                                                     purposes of checks by the tax          end of the calendar year for which the entry
                                        authority. Every entrepreneur must expect           was made or to which the document
                                        that the tax base as determined by him is           relates.
                                        checked and questioned in the course of a
                                        tax examination. Therefore you are obliged           Example:
                                        to retain your accounting documents.                 An incoming invoice dated 3 January
                                                                                             2001 must be retained until 31 December
                                        Among other things, audits may cover the             2008. The accounts relating to the
                                        following measures:                                  year 2001, together with the relevant
                                                                                             documents, must not be removed until
24                                      • field audit (Sec. 147 FTPA),                       1 January 2009.
The retention period may also be 12 years,      • recorded in the accounts
for instance in the case of documents and         once on the debit side
records relating to real estate (Sec. 18 (10)     and once on the credit                           In the journal business
VATA). In addition, the documents must be         side (so-called balanced                      transactions are recorded
retained in a pending tax process and court       accounts);                                   chronologically, whereas in
proceeding even though the time period has                                                             the main ledger by
expired.                                        • dual determination of                           subject (systematically).
                                                  profits: first by the net
Of course the accounting documents may            worth comparison
also be retained electronically. Tax law al-      method and second by the profit
lows the use of scanners, microfilms and          and loss account.
data carriers, provided complete, identical
and faithful reproduction is safeguarded        Other characteristics of
until the expiry of the statutory retention     “double-entry book-keeping“
period. If such documents are stored on         are:                                Subsidiary ledgers are, for instance,
data carriers only, there is no requirement                                                  registers of customers and
of faithful reproduction of originals (Sec.     • the keeping of subsidiary                   suppliers, cash books, etc.
132 (2) FTPA).                                    ledgers;

Where the accounting period does not coin-      • the recording and valuation of invento-
cide with the calendar year, the period com-      ries (stock-taking), accounts receiv-
mences to run after the end of the calendar       able, accounts payable;
year in which the accounting period ends          as well as
(Sec. 132 (1) FTPA)!
                                                • the recording of expenses and receipts
                                                  on the accrual basis, i.e. expenses and
E. Methods of                                     receipts are accounted for in the
determining profits                               accounting period to which they relate.
in detail
                                                Profits (losses) are determined in two ways:
Double-entry book-keeping
                                                • by the net worth compar-
The term “to keep books“ is nowadays no           ison method (indirect
longer to be taken literally. Because, as a       determination of profits               Net worth (= equity capital):
rule, accounting is effected by PC and only       and losses): The net worth                    assets less liabilities
in specific situations are entries still made     at the end of the year is
in file cards. The term “book-keeping“ is         compared with the net
equivalent with “double-entry book-               worth at the end of the preceding year
keeping“.                                         by taking into account capital contri-
                                                  butions and withdrawals of capital;
“Double-entry book-keeping“ is character-
ised by the following:                          • by the profit and loss account (direct
                                                  determination of profits and losses)
• every business transaction is recorded          which compares receipts and expenses.
  in the journal and in the main ledger
  on impersonal accounts, and is                                                                                              25
VI. BUSINESS ACCOUNTING

                              The determination of profits by “double-       A receipt is recognized only when the amount
                              entry book-keeping” may be represented         of money for an economic performance has
                              graphically in the following way, taking the   been received, either in cash or by crediting
                              year 2003 as an example:                       to an account. The right to dispose of the
                                                                             money as owner is sufficient (cf. chapter on
                                                                             “Business receipts“, p. 62).
 Net worth as of        Net worth as of
31. December 2002      31. December 2003                                     The deduction of an expense depends on
                                                         = Profit            whether the entrepreneur’s cash has de-
                                                                             creased (cf. chapter on “Business expenses“,
                                                                             p. 53).

        Expenses           Receipts                                          Thus, under the cash accounting method
     during the year    during the year                                      expenses and receipts are recorded exclu-
                                                                             sively after the payment flow has occurred.

                                                                             An exception to this principle is the de-
                               Please note:                                  duction for depreciation. Here the only
                               Profits (losses) are determined by com-       question is whether the acquisition or pro-
                               paring business receipts with business        duction of the asset has already occurred.
                               expenses taking into account any with-        The actual payment of the asset is of no
                               drawals of capital or capital contributions   relevance. In order to make deductions for
                               and depreciation.                             depreciation cash basis taxpayers have to
                                                                             keep a fixed-assets register (Sec. 7 (3) ITA).
                                                                             If a trader uses the cash accounting
                              Cash accounting                                method, he also has to keep a purchase
                                                                             book (Sec. 127 FTPA). An employer in addi-
                              Because of its easy handling cash account-     tion needs a wage account for each mem-
                              ing can be recommended for small traders       ber of his staff (Sec. 76 ITA).
                              not exceeding the book-keeping thresholds
                              as well as for the liberal professions such
                              as physicians and lawyers who do not have       Please note:
                              to keep books anyway. As the name implies:      There is an option to record business
                              (business) receipts and (business) expenses     receipts and business expenses either as
                              have to be recorded and the cash principle      VAT-inclusive amounts (gross method)
                              (cash receipts, cash expenses) applies.         or as VAT-exclusive amounts (net
                                                                              method) (Sec. 4 (3) third sentence ITA).
                              From the income tax assessment year 2003        Where the net method is applied, VAT is
                              it is mandatory to present cash accounting      treated as a transitory item. For detailed
                              by means of attachment E 1a (see p. 93).        information see chapters on “Business
                              Therefore, the boxes for business receipts      expenses”, p. 53, and “Business receipts“,
                              and business expenses as indicated therein      p. 62.
                              must be completed. Attachment E 1a must
                              be filed together with the income tax
                              return. It is no longer necessary to file a
26                            separate cash accounting statement.
 Example:
                                  Cash accounting for 2003
 business receipts (net)                        business expenses (net)
 in EUR                        box E 1a         in EUR                               box E 1a
 receipts from turnover 38,000 9040             telephone and postage 500            9230
 sales of fixed assets   2,000 9060             office rent                  1,450   9180
                                                specialist literature          300   9230
                                                travel expenses                650   9160
                                                social security              3,000   9230
                                                remuneration from
                                                third-pary services          1,000   9110
                                                consultancy fees               750   9230
                                                advertising                    400   9200
                                                Sec. 13 ITA (low cost assets) 250    9130
                                                depreciation                   700   9130
 total                 40,000                   total                        9,000
                                                profit 2003                 31,000



Lump sum taxation

If the respective requirements are met, you
may also opt for lump sum taxation.

A distinction is made, on the one hand, be-                                                  Lump sum taxation is possible not
tween:                                                                                       only in the area of income tax but
                                                                                            also in the area of value added tax.
• full lump sum taxation (in this case                                                                        Cf. the chapter on
  profits are subject to lump sum taxa-                                                              “Lump sum taxation“, p. 63.
  tion) and partial lump sum taxation
  (in this case only business expenses,
  in full or in part, are subject to lump
  sum taxation), and

• on the other hand, between lump sum
  taxation for certain industries (e.g.
  inn-keepers, grocers, writers, artists) and
  a general lump sum deduction which
  does not focus on certain industries.




                                                                                                                                   27
VII. INCOME TAX

                                        All individuals who have their residence or  persons without a residence in Austria may
                                        habitual abode in Austria are subject to     also be liable to Austrian tax with regard to
                                        unlimited income tax liability (Sec. 1 (2)   certain items of domestic income (“limited
                                        ITA). “Unlimited“ means that, in principle,  tax liability“, Sec. 1 (3) ITA). A taxpayer
                                        all items of domestic and foreign income     may be liable to tax in several states at the
                                        are subject to income tax. In addition,      same time. For this reason there are so-
                                                                                              called “double taxation agree-
                                                                                              ments“ which provide that nobody
 1. Income from agriculture and forestry                                                      pays tax on the same items of
    e.g. farmers, fish-culturists, forestry enterprises,                                      income abroad and in Austria. As a
    market-gardeners, bee-keepers, wine-growers                      business income          rule, only Austrian income tax will
 2. Income from professional and other independent services          categories,              affect you.
    e.g. liberal professions such as physicians, lawyers, artists,   “income from
    writers, scientists, property management                         profits”
 3. Income from trade                                                                            A. The concept
    e.g. the “classic” trades such as joiners, locksmiths but also                               of income
    commercial enterprises, additionally agents
 4. Income from employment                                                                       The tax is imposed on the income
    e.g. active employees and pensioners                                                         you have derived within a calendar
 5. Income from renting and leasing                                                              year (Sec. 2 (1) ITA). By “income“ is
    e.g. renting of immovable property such as land, buildings,                                  meant the total amount of income
    apartments (including sublease!)                                                             from seven income categories
 6. Income from investment                                                                       taking into account any losses and
    e.g. personal interest income from savings accounts,                                         deducting special expenses and
    securities, dividends and profit distributions resulting from                                extraordinary burdens (Sec. 2 (2)
    shares in companies. Such income constitutes domestic                                        ITA).
    income and is mostly subject to a 25 % tax on capital            non-business
    yields which is in principle a final tax, i.e. no additional     income categories,          The survey on this page shows you
    income tax is levied. If capital yields are derived from         “surplus of receipts        the seven categories of income and
    abroad from 1 April 2003 (e.g. dividends paid by foreign         over expenses”              the determination of income:
    companies without domestic deposit, interest from foreign
    bonds without domestic paying agent), such yields may
    be taxed at the rate of 25 % by way of income tax                                            Note:
    assessment.                                                                                  You find detailed information
 7. Other income                                                                                 on the subject of “income
    e.g. income derived occasionally such as gains from the                                      from employment“ in the bro-
    sale of a real estate in the private sphere within certain                                   chure “Austrian Taxbook“ at
    time limits (so-called “speculative transactions”), but also                                 www.bmf.gv.at under “Steuern“
    certain recurrent income (annuities) and income derived by                                   (taxes) and “Publikationen“
    functionaries.                                                                               (publications) in a download
 = Total amount of income                                                                        version.
    - Special expenses
    - Extraordinary burdens
 = Income

28
Increases in wealth which are not covered       profits or surpluses from the same source of
by the seven categories of income are not       income have been derived (Sec. 2 (2a) ITA).
subject to income tax (e.g. gambling and
lottery winnings).                              Carry-forward of losses/
                                                deduction of losses
The entrepreneur has several options to
determine profits. For details see the chap-    Where it is not possible to set off losses -
ter on “Business accounting“, p. 23.            which are sustained in the first three cate-
                                                gories of income (business income) and
In the case of partnerships (general part-      which are determined by bookkeeping -
nerships, limited partnerships, small part-     against positive items of income in a
nerships, civil law partnerships) the profits   sufficient manner in the same year, it is
derived by the business are determined at a     possible to “carry forward” such losses, i.e.
first stage in a separate procedure (Sec. 188   to deduct them as special expenses in
FTPA). The amount of the share in the prof-     subsequent years (Sec. 18 (6) ITA). If losses
its attributable to the individual partner      are used in such a way this is called
depends on the individual share and the         “carry-forward of losses” or “deduction
provisions in the partnership agreement.        of losses”.
At a second stage the share in the profits
as previously determined is taxed in the        The carry-forward of losses depends on
hands of each partner in his income tax         whether the entrepreneur keeps his books
procedure.                                      properly by applying the system of double-
                                                entry book-keeping. Cash-basis taxpayers
                                                are only allowed to carry forward losses
B. Possibilities                                incurred within the first three years
of using losses                                 after they have started their business
                                                (so-called “start-up losses”, Sec. 18
Income tax is only payable if the taxpayer      (7) ITA).
derives a corresponding income. The pur-
pose is to take into account the earning        In general, however, it can be said that from
capacity when the tax is imposed. Therefore     the assessment year 2001 losses can be
losses have to be taken into consideration      carried forward only to the extent of 75 %
for tax purposes.                               of the total amount of income (Sec. 2 (2b)
                                                ITA). This limitation, however, does not
Set-off of losses                               mean that the portion of losses which can-
                                                not be carried forward is lost, because this
An entrepreneur may also incur losses. As a     portion can be carried forward in subse-
rule, such losses may be set off against        quent years.
other positive items of income derived in
the same year. This is called “set-off of       In order to arrive at the taxable income it is
losses”. The ITA, however, provides for limi-   still necessary to deduct special expenses
tations on the set-off of losses.               and any extraordinary burdens from the
                                                total amount of income. You find more
For instance, some negative items of in-        detailed information in the chapter on
come cannot be set off immediately against      “Special expenses and extraordinary bur-
positive items of income but only after         dens”, p. 30.                                    29
VII. INCOME TAX

                                C. Special expenses                               of progressive tax rate brackets with a total
                                and extraordinary                                 number of five tax rate brackets (Sec. 33
                                burdens                                           (1) ITA). There is a specific tax rate for each
                                                                                  income bracket. The annual income tax
                             Special expenses (Sec. 18 ITA) are in partic-        amounts to:
                             ular expenses for
                             • personal insurance,                                        Income in EUR             Tax rate
                             • securing living space,                                             up to 3,640         0%
                             • living space improvements,                          over    3,640 up to 7,270         21 %
                             • certain types of investment such as                 over     7,270 up to 21,800       31 %
                                 newly issued shares or jouissance shares.         over   21,800 up to 50,870        41 %
                                 Such expenses are normally limited in             over   50,870                     50 %
                                 amount and deductible only to the
                                           extent of 25 %. If the income
                                           is EUR 36,400 or more, the de-          Example:
     Special expenses also include         ductible amount is additionally         The taxable income of an entrepreneur
      the carry-forward of losses!         reduced, and the expenses are           amounts to EUR 60,000. The tax accord-
                                           not deductible at all if the            ing to the tax rate schedule is determined
                                           income is EUR 50,900 or more;           as follows:
                             • Establishing (maximum amount EUR 50)
                                 first-time access to Internet by means of
                                 broad band technology and basic fees                Income            %             Tax
                                 (maximum amount EUR 40 per month).                  in EUR                        in EUR
                                 The period for deductibility of such                   3,640           0              0.00
                                 expenses is limited: from 1 May 2003               + 3,630            21            762.30
                                 to 31 December 2004.                               + 14,530           31          4,504.30
                             • church contributions up to a maximum                 + 29,070           41         11,918.70
                                 amount of EUR 75.                                  + 9,130            50          4,565.00
                                                                                    = 60,000                     21,750.30
                                Extraordinary burdens (Secs. 34 and 35 ITA)
                                include, for instance, expenses for disability,
                                disease or vocational training of children         The tax according to the tax rate sched-
                                away from home. You find more detailed in-         ule is EUR 21,750.30, the marginal tax
                                formation on the subjects of “special ex-          rate is 50 %. This means that only 50 %
                                penses“ and “extraordinary burdens” in the bro-    of any additional increase in the entre-
                                chure “Austrian Taxbook“ at www.bmf.gv.at          preneur´s income remains in his hands.
                                under “Steuern“ (taxes) and “Publikationen“        Assuming that he derives additional
                                (publications) in a download version.              income of EUR 10,000 from renting
                                                                                   and leasing, then the resulting tax is
                                                                                   EUR 5,000.
                                D. Tax rate schedule
                                and tax credits                                   The tax as calculated according to the tax
                                                                                  rate schedule is reduced by tax credits.
                                The income as determined above is then            Whereas special expenses and extraordi-
                                subject to the tax rate schedule. The             nary burdens reduce only the tax base, tax
30                              Austrian income tax rate schedule consists        credits always reduce the tax itself.
 The Income Tax Act provides for the
 following tax credits:

 General tax credit
 (basic amount with sliding scale)              EUR 1,264.00 per year
 Employee tax credit
 (or cross-border worker tax credit)              EUR 54.00 per year
 Transportation tax credit                       EUR 291.00 per year
 Pensioner tax credit
 (basic amount with sliding scale)               EUR 400.00 per year                      For further information on the
 Sole earner/single parent tax credit            EUR 364.00 per year                  subjects of “tax rate schedule“ and
 Child tax credit                                         EUR 50.90                        “tax credits“ see the brochure
                                                 per month and child                                “Austrian Taxbook“ at
 Alimony tax credit                               EUR 25.50 to 50.90                      www.bmf.gv.at under “Steuern“
                                                 per month and child                  (taxes) and “Publikationen“ (publi-
                                                                                         cations) in a download version.




E. Tax credits for wage tax                      Prepayments of income tax
and prepayments
of income tax                                    An employee who is subject to wage tax
                                                 receives his net remuneration. The employ-
If your income, in addition to the income        er withholds wage tax in the course of
you derive as an entrepreneur, also includes     every wage payment and pays the tax to
income from an employment, the wage tax          the tax office which is responsible for the
withheld is deducted from the income             assessment of his business. Entrepreneurs
tax, since wage tax is only a special way of     must also make prepayments of income tax
levying income tax. The prepayments of           in order to ensure that entrepreneurs are
income tax you made on the basis of the          not privileged in comparison with employ-
amount of expected income tax must also          ees (Sec. 45 (1) ITA).
be credited.
                                                 The prepayments must be made on
It is true that capital yields tax – which       15 February, 15 May, 15 August and
must be withheld by banks (e.g. interest on      15 November for each calendar quarter
savings accounts) or companies before the        (Sec. 45 (2) ITA). The tax office will remind
capital yields are paid out – is considered a    you by sending you an account statement
special way of levying income tax. However,      approximately two weeks before the time
in the course of the assessment of income        limit for payment.
tax, capital yields tax is credited only in
exceptional cases since capital yields are
normally subject to a final tax which is
withheld on the yields.                                                                                                     31
VII. INCOME TAX

                                 F. Obligation to file                           keep books must attach their balance sheet
                                 an income tax return                            and their profit and loss account or must
                                                                                 file with the tax office such documentation
                                             In principle you are obliged to     on paper at the time when filing their elec-
  Please do not attach a wage sheet          file an income tax return in all    tronic tax return (Sec. 44 (1) ITA). For cash-
      to your income tax return “E 1“.       cases where you are requested       basis taxpayers attachment E 1a contains a
     This sheet is transferred by your       by the tax office to do so          standardised statement of business re-
           employer or the institution       (Sec. 42 (1) (1) ITA), i.e. where   ceipts and business expenses. There is no
                 paying your pension.        an income tax return is sent        need for you to file an additional cash
 You find form E 1 at www.bmf.gv.at          to you. If there is no such         accounting statement on paper.
           under “Formulare“ (forms).        request you have to distin-
            For electronic tax returns       guish whether your income           Time limit for filing a return
                              see p.18.      includes income subject to
                                             wage tax or not:                    The income tax return must be filed by
                                                                                 30 April of the following year or, if trans-
                                 • if your income, in addition to income         mitted electronically via FINANZOnline, by
                                   subject to wage tax, also includes            30 June of the following year (Sec. 134 (1)
                                   other items of income exceeding the           FTPA). In specific situations the period for
                                   total amount of EUR 730 and your              filing the tax return may be extended if the
                                   total income exceeds EUR 10,000,              request is founded (Sec. 134 (2) FTPA). If you
                                   you are obliged to file an income tax         are represented by a “tax representative“ you
                                   return. Capital yields subject to a final     normally have more time at your disposal for
                                   tax are not to be included!                   filing your tax return.

                                 • if your income does not include income         Note:
                                   subject to wage tax, you must file an          You find more detailed information on
                                   income tax return only if your income          FINANZOnline under “Electronic tax
                                   amounts to more than EUR 8,887                 returns“, p. 18, or at www.bmf.gv.at under
                                   (Sec. 42 (1) (3) ITA).                         “FINANZOnline“.

                                 Finally you are obliged to file a tax return
                                 if all or part of your income consists of       G. Assessment of
                                 income from profits (income from agricul-       income tax
                                 ture and forestry, income from trade and
                                 income from professional and other inde-        Income tax is in principle imposed at a later
                                 pendent services) and the profits are deter-    time by notice of assessment (Sec. 39 (1)
                                 mined on the basis of “double-entry book-       ITA). After the income tax return has been
                                 keeping“.                                       filed with the tax office the assessment is
                                                                                 made. Either a credit occurs or additional tax
                                 You can take for granted that normally you      is due, depending on whether the prepay-
                                 will have to file an income tax return.         ments made or creditable taxes (in particular
                                 For this purpose you may either use             wage tax) were higher or lower than the
                                 FINANZOnline under “Eingaben/Erklärun-          resulting income tax.
                                 gen“ (letters/returns) or the official form
                                 E 1. This obligation also includes the filing   If you do not agree with the tax assessed
32                               of certain attachments. Entrepreneurs who       by way of tax notice, e.g. because the
notice deviates from your return or be-
cause you have made a mistake when pre-
paring your return, you may lodge an
appeal as a legal remedy within one month
of receipt of the notice of assessment
(Secs. 243 et seq FTPA).

 Note:
 You find detailed information on the
 subject of “appeals“ in the chapter on
 “Legal protection and reliefs“, p. 72.

An assessed income tax liability is payable
within one month after the notice of
assessment has been served (Sec. 210
(1) FTPA).




                                              33
VIII. CORPORATION TAX

                                  If you establish a limited liability company       Example:
                                  instead of a sole proprietorship, for instance     A limited liability company is newly
                                  because of the question of liability and social    established in January 2003. In that year
                                  security provisions, things are a little more      prepayments of corporation tax have to
                                  complicated. When establishing a limited           be made on 15 February, 15 May,
                                  liability company, among other things, a           15 August and 15 November, each
                                  notarial deed and registration in the com-         amounting to EUR 273, i.e. a total of
                                  mercial register is necessary. Here are some       EUR 1,092. For the subsequent year
                                  remarks about corporation tax:                     2004 the minimum corporation tax
                                                                                     amounts to a total of EUR 1,750.
                                  • For a limited liability company you
                                    always need double-entry book-
                                    keeping. Therefore it is necessary to           However, the minimum tax is not lost.
                                    draw up a balance sheet as well as a            Where the actual corporation tax of the
                                    profit and loss account. Cash accounting        current year is less or zero because of a low
                                    or lump sum taxation is not possible!           profit (or because of a loss), the difference
                                                                                    between the minimum corporation tax paid
                                  • Additionally a limited liability company        and the actual tax is credited like a prepay-
                                    requires a minimum share capital of             ment in subsequent years where higher
                                    EUR 35,000.                                     profits are made.

                                  • The limited liability company – just as
                                    other legal persons (stock corporations,        B. Employment as
                                    clubs, co-operative societies) –                managing director
                                    is subject to corporation tax.
                                                                                    An essential advantage of the legal form
                                                                                    of a limited liability company is that you
           While income tax affects all        A. Tax rate                          can become a managing director of your
     individuals, corporation tax is the                                            company. The tax treatment of the direc-
      income tax paid by legal persons.       Corporation tax is levied on          tor’s salaries depends on the extent of the
                                              taxable income at the rate of         share in the company´s capital:
                                              34 %, irrespective of the amount
                                  of income (Sec. 22 (1) CTA). Unlike income        • If the share does not exceed
                                  tax, corporation tax is levied at a flat rate.      25 %, the income is qualified as
                                                                                      employment income.
                                  Minimum corporation tax
                                                                                    • However, if the share is more than
                                  A limited liability company is subject to           25 % the managing director’s salary
                                  a so-called minimum corporation tax, both           is qualified as income from other
                                  in the case of profits and losses. This             independent services (Sec. 22 (2) ITA).
                                  minimum tax is EUR 1,092 (in the first year         This means that you cannot claim
                                  after establishment of business) or EUR             the tax reliefs for special payments
                                  1,750 in all other cases and is payable on          (13th and 14th monthly wages)
                                  15 February, 15 May, 15 August and                  and that the income is subject
                                  15 November for each calendar quarter               to assessment.
34                                respectively.
The managing director’s salaries are busi-                                                Amount       %
ness expenses at the level of the limited                                                  in EUR
liability company. Therefore they reduce          pre-tax profits                          40,000    100.00
the taxable profits subject to corporate          34 % corporation tax thereof            -13,600    -34.00
income tax, whereas they are subject to           profit distribution                      26,400     66.00
wage tax or income tax at the level of the        25 % capital yields tax thereof           -6,600   -16.50
shareholder/director.                             shareholder receives                     19,800     49.50
                                                  tax burden                               20,200     50.50
In the case of a limited liability company it
is necessary to distinguish between two
levels: The level of the company and that
of the shareholder. As long as the profits
are retained within the limited liability        D. Corporation tax return
company only 34 % corporation tax is
levied. If the profits or parts of them are      The corporation tax return must be filed by
distributed to the shareholders, a capital       30 April of the following year or, if trans-
yields tax at the rate of 25 % must be           mitted electronically via FINANZOnline, by
withheld on the amount distributed (Sec.         30 June of the following year (Sec. 134 (1)
93 (2) (1) (a) in connection with Sec. 95 (1)    FTPA). In specific situations the period for
ITA) and paid to the tax office responsible      filing the tax return may be extended if the
for the assessment of the business. Thus         request is founded (Sec. 134 (2) FTPA). If
the profit distribution is in principle sub-     you are represented by a “tax representa-
ject a final tax at the level of the receiving   tive“ you normally have more time at your
shareholder. However, he may also make a         disposal for filing your tax return.
request for taxation by way of assessment
where half of the average tax rate is             Note:
applied.                                          You find more detailed information on
                                                  FINANZOnline under “Electronic tax
                                                  returns“, p. 18, or at www.bmf.gv.at under
C. Tax burden compared                            “FINANZOnline“.
with income tax

Where a profit distribution is made the total
tax burden for a limited liability company is
50.5 %. This means that the overall tax ratio
is slightly higher compared with the highest
tax bracket in the case of progressive income
tax (= 50 %).

 Example:
 The profits of a one-man company
 amount to EUR 40,000 and are dis-
 tributed in whole to the shareholders
 after taking into account the 34 %
 corporation tax:
                                                                                                              35
IX. VALUE ADDED TAX

                                     Generally you can assume that supplies       One of the requirements is that the supply
                                     you make to your customers will be cover-    has to be made by an entrepreneur. An en-
                                     ed by the 1994 Value Added Tax Act           trepreneur is any person carrying on a trade
                                     (VATA). It makes no difference if you earn   or profession independently, e.g. as a trader,
                                     your money by supplying goods or             journalist, lecturer, lessor (Sec. 2 (1) VATA).
                                     services.
                                                                                  The fact that supplies are subject to the
                                                                                  1994 VATA does not necessarily mean that
                                     A. Taxable events                            such supplies are also taxable. Because the
                                                                                  1994 VATA contains a number of tax exemp-
                                     The following events are subject to value    tions (Sec. 6 VATA).
                                     added tax (VAT):

                                                 • the supplies of goods and      B. Tax exemptions
        Supplies of services e.g. include          services effected for con-
     services by the liberal professions,          sideration within the          The VATA distinguishes between zero-rated
       services by skilled tradespeople,           territory of Austria by an     supplies and exempt supplies.
               but also renting, leasing           entrepreneur in the frame
                          and licencing.           of his enterprise              In the case of zero-rated supplies the right
                                                   (Sec. 1 (1) (1) VATA),         to deduct input tax is not affected, e.g.

                                     • self-supplies,                             • export supplies of goods to third states
                                                                                    (special provisions apply in the case of
                                     • the importation of goods from a third        “tourist exportations“!). For details see
                                       country into Austria, and                    chapter on “Export supplies of goods“,
                                                                                    p. 43;
                                     • intra-Community acquisitions.
                                                                                  • working and processing of goods (“con-
                                  In addition to the taxable events mention-        tract work“) to be exported (refers to
                                  ed above a tax debt may also arise in the         third states).
                                  case of an incorrect or unjustified issue of
                                  an invoice (For further details see             In the case of exempt supplies the de-
                                              “Deduction of input tax“, p. 39).   duction of input tax is lost, e.g.
                                              Moreover, in certain situations
       The value added tax invoiced by        (services rendered by foreign       • supplies of money and supplies by banks
      other entrepreneurs is deductible       enterprises or in certain cases       (e.g. extension of credit),
          as input VAT! For details see       of construction supplies) the
             chapter on “The deduction        tax debt may be shifted to you      • sales of real estate,
                   of input tax“, p. 39.      who receive the supply. In such
                                              cases you receive from the          • supplies by insurance agents,
                                              supplying entrepreneur only an
                                  invoice exclusive of VAT (no indication         • supplies by physicians,
                                  of VAT!) and you owe the resulting tax
                                  which you may deduct immediately (pro-          • supplies by small entrepreneurs
                                  vided that you are entitled to deduction of       (for details see chapter on
36                                input tax).                                       “Small entrepreneurs“, p. 38).
Value added tax, in principle, only affects       Examples:
the final consumer. The entrepreneur              A dealer in electrical appliances removes
making supplies of goods or services mere-        a television set from his stock and from
ly acts as a trustee: he cashes VAT from his      now on uses it in his private household. A
customer and is subsequently obliged to           lecturer uses his PC, for which he claimed
pay it to the tax office. Nevertheless, the       full deduction of input tax, also for pri-
entrepreneur is debtor of the value added         vate purposes.
tax. Every entrepreneur, however, also has
“previous suppliers of goods“, i.e. other
entrepreneurs making supplies of goods.          D. Taxable amount
With respect to such supplies the entrepre-
neur is entitled to deduct input tax. Input      The taxable amount for supplies of goods and
tax means the value added tax invoiced by        services is the consideration. Consideration
other entrepreneurs.                             is everything your customer has to expend
                                                 (including voluntary payments)
 Example:                                        in order to receive the supply
 When you make your daily purchases in           of goods or services made by                 Value added tax itself is not
 your grocery store VAT is invoiced to you       you (Sec. 4 (1) VATA). It also           included in the taxable amount!
 which you have to pay of course. The gro-       includes incidental expenses
 cer is, however, obliged to pay this VAT to     charged to the customer such
 the tax office. Likewise, the grocer is         as expenses for packing, transport and post-
 invoiced VAT by his suppliers, e.g. baker,      age, service supplement, taxes (e.g. excise
 butcher, etc. when he receives his goods        duties, standard consumption levy).
 or services. However, he is entitled to
 claim the invoiced VAT.                         In practice value added tax therefore
                                                 depends on the agreed purchase price or
                                                 remuneration.
C. Supplies of goods
and services carried out                         In cases of withdrawal or use of goods
free of charge
                                                 • for non-entrepreneurial purposes
The following events are deemed to be sup-
plies of goods or services and are, as a rule,   • for staff needs
subject to VAT:
                                                 value added tax is levied on the purchase
• the use or withdrawal of goods by the          price or cost price (at the time when the
  entrepreneur for non-entrepreneurial           goods are withdrawn or used). Where ser-
  purposes or for private purposes of            vices are rendered for private needs, value
  his employees, or                              added tax is levied on the attributable costs
                                                 (Sec. 4 (8) VATA).
• other services rendered at the request
  of the entrepreneur for his private
  purposes or for private purposes of
  his employees.

                                                                                                                              37
IX. VALUE ADDED TAX

                                E. Amount of                                     amount of tax to the tax office. If your cus-
                                value added tax                                  tomers are exclusively final consumers and no
                                                                                 substantial amounts of input tax occur, the
                                The principal tax rates are:                     “regime for small entrepreneurs“ may turn out
                                                                                 to be advantageous because in this way your
                                • the standard tax rate of 20 %, and             supplies become cheaper on the market (no
                                                                                 value added tax is charged).
                                • the reduced tax rate of 10 %.
                                                                                 However, if you primarily deal with other entre-
                             The application of the 20 % rate is the rule!       preneurs, the value added tax shown on an
                                          Supplies are subject to the rate of    invoice is not a problem because, as a rule, it
                                          10 % only in exceptional cases.        can be deducted as input tax by your customers.
     The application of the 20 %          These are exhaustively enumer-         Therefore, in such cases it is advisable to opt for
                  rate is the rule!       ated in Sec. 10 (2) VATA. The rate     taxation under the general regime. For this pur-
                                          of 10 %, for instance, applies to:     pose you can provide a written declaration to
                                                                                 the tax office until the notice of assessment to
                                • the renting out for purposes of lodging        VAT is legally binding, declaring that you do not
                                  and accommodation,                             wish to apply the regime for small entrepre-
                                                                                 neurs (Sec. 6 (3) VATA). Although such a decla-
                                • the transport of persons,                      ration is binding on you for at least five years it
                                                                                 is possible to deduct input tax for received su
                                • the disposal of refuse,
                                                                                  Note:
                                • the supply of books, newspapers,                You will find Form U 12 to be used for
                                  magazines, foodstuffs,                          filing the declaration concerning the
                                                                                  waiver of exemption at www.bmf.gv.at
                                • the supplies by artists acting as such.         under “Formulare“ (forms).



                                F. Small entrepreneurs                           G. Taxation of advance
                                                                                 payments
                                If your total supplies as an entrepreneur do
                                not exceed EUR 22,000 in a year, you are         If you receive an advance payment for a sup-
                                exempt from value added tax (Sec. 6 (1) (27)     ply you will have to make in the future, the
                                VATA). If this threshold is exceeded only once   cash amount received has to be subjected to
                                within five calendar years to an extent of up    value added tax already in the month of
                                to 15 %, then this will have no harmful effect   receipt (Sec. 19 (2) (1) (a) VATA). If the person
                                on the exemption. This is also called the “re-   making the advance payment is an entrepre-
                                gime for small entrepreneurs”. Small entrepre-   neur, you must issue an invoice for him on
                                neurs need not pay VAT, on the other hand,       which the value added tax is separately
                                however, they are not allowed to show value      shown. If an advance payment has been made
                                added tax on an invoice for their supplies and   and the person making the advance payment
                                they are not entitled to deduct input tax.       is in possession of a respective invoice on
                                                                                 which the value added tax is separately
                                If a small entrepreneur nevertheless shows       shown, then he is regularly entitled to deduct
38                              VAT separately on an invoice, he owes this       input tax – provided he is an entrepreneur.
H. Deduction                                       payments made, it is necessary that the
of input tax                                       invoice received fully meets the require-
                                                   ments of Sec. 11 VATA. Otherwise the tax
An entrepreneur is entitled to deduct input        authority has to disallow the deduction of
tax if the supply of goods or services – for       input tax.
which an adequate invoice has been issued –
has been effected in Austria and for his enter-    In certain industries it is also usual that the
prise (Sec. 12 (1) VATA). Supplies of goods        recipient of the supply himself
and services are not considered to be ef-          issues a document concerning
fected for the enterprise if such supplies do      the received supply (e.g. the                        Under civil law you are
not serve business purposes to an extent of        licensee in the case of royal-                     entitled to an adequately
at least 10 % (Sec. 12 (2) VATA). Special rules    ties or the publishing house in                               issued invoice!
apply to buildings.                                the case of the author’s remu-
                                                   neration). If this document
Where expenses are incurred in connection
with cars, mixed vehicles and motorcycles it       • meets the formal requirements
is, in principle, not possible to deduct input       of an invoice,
tax (except e.g. taxi cabs, driving school
vehicles). Special rules also apply to enter-      • has been received by the supplying
tainment expenses (e.g. expenses for busi-           entrepreneur, and
ness meals).
                                                   • the latter has no objections to it,
Input taxes may also be claimed for advance
payments made (i.e. prior to the date the          then the recipient of the supply (e.g. licensee,
supply is received) if the advance payment         publishing house) can also claim deduction
has been effected and an adequate invoice          of input tax on the basis of this invoice is-
has been issued. Irrespective of an invoice,       sued by himself (=credit).
input taxes may also be claimed in connec-
tion with imports from third countries              Please note:
(import VAT), intra-Community acquisitions          This type of invoicing is only allowed be-
(tax on acquisitions) or in cases where the         tween entrepreneurs entitled to deduction
tax liability is shifted to the recipient of the    of input tax.
supply, provided that all the other require-
ments are met (see p. 36).                         The issue of an electronic invoice is only
                                                   allowed if the recipient of the invoice agrees
Amounts of input VAT which are incurred in         and if it is safeguarded that the origin of the
the course of the establishment of a new           data is authentic and the data contents are
business (i.e. before making supplies of one’s     intact (among other things, if the invoice
own) can be claimed from the tax office by         shows a signature).
way of a preliminary VAT return (e.g. for
investments, cost for contract).                   If an entrepreneur issues an invoice in re-
                                                   spect of a taxable supply, he must make a
Adequate invoice                                   copy or a carbon copy and retain it for seven
                                                   years.
In order to deduct input VAT on the basis of
a supply received or in the case of advance                                                                                        39
IX. VALUE ADDED TAX

                                       Formal requirements of an invoice                 documents must be available both at the
                                       According to Sec. 11 (1) VATA an adequate         issuer and at the recipient of the invoice. If
                                       invoice must show the following information:      an invoice does not contain all details, it is
                                                                                         in most cases sufficient to indicate on the
                                     • the name and the address of the entre-            invoice that the necessary information is
                                        preneur making the supply of goods or            contained in other documents (e.g. confir-
                                        services (supplier);                             mations of orders, delivery notes, consign-
                                                  • the name and the address             ment notes, contracts).
                                                    of the recipient of the
      To be on the safe side with regard            supply of goods or                   Things get a bit more complicated if an
           to the deduction of input VAT            services (recipient                  invoice contains considerations which are
        only invoices should be accepted            of the supply);                      subject to different tax rates. In such
       which contain the names and the            • the quantity and the com-            cases the considerations and the amounts
           addresses of both the supplier           mercially used description of        of tax must be shown separately on the
          and the recipient of the supply           the supplied goods or the            invoice according to the tax rates (10 %
         as well as a detailed description          type and the scope of the            and 20 %).
                    of the received goods           supplied services (scope of
                               or services.         supply);                             Invoices for small amounts
                                                  • the date of the supply of            (Sec. 11 (6) VATA)
                                                    goods or services or the             If an invoice does not exceed the total
                                                    period over which the supply         amount of EUR 150 (i.e. gross amount
                                                    extends (date or period              including VAT), it is not necessary to indi-
                                                    of supply);                          cate the name and address of the recipient of
                                                  • the consideration for the            the supply as well as the consecutive in-
       If the issue of an invoice and the           supply of goods or services          voice number and the VAT identification num-
     calculation of the amount of tax is            (net amount) and the appli-          ber. Also, it is not necessary to show the
       effected by a PC, the VATA allows            cable tax rate;                      amount of tax separately. It is sufficient to
         to show the amount of tax in a           • the amount of tax payable            indicate the tax-inclusive amount (consider-
      total sum provided that each item             on the basis of the consid-          ation plus amount of tax) and the VAT rate.
                on the invoice shows the            eration. This amount must be
                       respective tax rate.         termed turnover tax or value         The supplier is free to issue an invoice which
                                                    added tax (it would not be           meets all the formal requirements mentioned
                                                    sufficient to indicate the           above.
                                                    tax rate only);
                                     • the date of issue;                                Invoices for small amounts are frequently
                                     • the consecutive invoice number;                   issued on so-called “slips“:
                                     • the VAT identification number of the
                                        supplying entrepreneur.                           Example:
                                                                                          This invoice shows a tax-inclusive amount
                                       It is also allowed to indicate the informa-        of EUR 78 at a tax rate of 20 %. Therefore
                                       tion on the supplier, the recipient of the sup-    the entrepreneur is entitled to deduct an
                                       ply and the scope of the supply by means of        amount of EUR 13 (78 : 1.2 x 20 %) as
                                       code numbers or symbols (using codes,              input VAT if the other requirements are
                                       numbers for customers, etc.) if it is possible     fulfilled. The indication “date of invoice =
                                       to clearly identify the coded information          date of supply of goods“ is also necessary
40                                     from the invoice or other documents. Such          in the case of invoices for small amounts.
Information on the scope of supply                      deductible if the entrepreneur is able to
In practice the most frequent problems                  substantiate by adequate and timely
occur in connection with the information on             documents that the the business meal is
the scope of supply. The use of collective or           almost exclusively related to advertising
generic terms such as meals and beverages,              purposes. The respective restaurant invoice
foodstuffs, textiles, office materials, special-        must, however, show in detail all items
ist literature, tools, etc. does not constitute         consumed: 2 small bottles of mineral
sufficient information on the quantity and              water, 1 big glass of apple juice mixed
the commercially used description of the                with soda water, 1 quarter of Veltliner
purchased goods and therefore does not                  wine, 1/2 litre of Zwickl beer, 3 portions
entitle to the deduction of input tax.                  of liver dumpling soup, 1 Wiener
                                                        Schnitzel, 2 portions of roast pork, 2 cof-
The same difficulties occur in the case of              fees “Melange“, 1 small portion of coffee.
invoices issued by various service providers.           However, the mere indication “meals and
The type and the scope of the received sup-             beverages” on the invoice would not
plies are frequently inaccurate since busi-             entitle to deduction of input tax!
nesses merely paraphrase their services by
indications such as maintenance, repairs,              Information on the date of supply
transport, etc.                                        Please pay also attention to the indication
                                                       of the date (period) of the supply. This data
 Example:                                              is absolutely necessary because it docu-
 The expenses for a business meal with                 ments the performance of the supply.
 customers constitute business expenses                Supplies of goods are, in principle, effected
 for income tax purposes to the extent of              on a specific day. Note that the issue of the
 50 % provided that such meal serves                   invoice and the supply frequently occur on
 advertising purposes (e.g. establishing               different days. However, if both dates
 business contacts). However, the input                actually coincide it is sufficient to indicate
 VAT connected with such meal is fully                 on the invoice that the “date of invoice =
                                                          date of supply of goods or services“.
                                                          Supplies of services (e.g. consulting ser-
                    Hans Drillich                         vices by a lawyer) in many cases extend
           Special shop for work clothes                  over a longer period of time, which in the
          1230 Vienna, Handwerksweg 21                    relevant cases has to be shown on the
                   Tel. 987 65 43                         invoice if the supplies are to give entitle-
                                                          ment to deduct input tax. If the supply-
 No.    Date 2 April 2004                 €        c      ing entrepreneur has not carried out
   1    pair of dungarees blue, size 52   19              activities on each day of the period, it is
   1    pair of dungarees grey, size 54   19              not necessary to show this on the in-
   1    windcheater green, size 50        40              voice. Simplifications are also provided for
                                          78              aggregate invoices by which supplies of
                                                          goods and services are invoiced for indi-
                                                          vidual periods (e.g. supplies of goods by a
 Prices inclusive of 20 % VAT                             baker, supplies by board and lodging enter-
 date of invoice = date of supply of goods
 Please present this slip                                 prises). As long as the period for which
 in case of error or exchange
                                                          an invoice is issued does not exceed one
 00199 - 14
                                                          calendar month it is not necessary to          41
IX. VALUE ADDED TAX

                                indicate each day of the individual supply of    down by law. In such cases the tax rate of
                                goods or services. Reference to the respec-      10 % is applied (i.e. 9.0909 % of the tax-
                                tive period is sufficient.                       inclusive amount).

                                Tax liability on the basis                        Example:
                                of invoicing                                      A trader travels from Vienna to Hermagor
                                                                                  in Carinthia on Monday at 8 a.m. in order
                                A person who shows on the invoice an amount       to conclude a contract. The negotiations
                                of VAT which is too high (e.g. 20 % VAT           turn out to be lengthy and therefore he
                                instead of the correct rate of 10 %) owes         does not return to Vienna until the next
                                this amount to the tax office as long as he       day about 2.15 p.m. As a result of this
                                does not make a corresponding correction of       trip the entrepreneur is entitled to the
                                this invoice.                                     following:
                                                                                  1 per diem rate of EUR 26.40 as a full
                                A person who shows VAT on an invoice even         amount and a pro rata share to the extent
                                though he                                         of EUR 15.40 (7 : 12 x 26.40) as well as a
                                • is not an entrepreneur, or                      lump sum amount of EUR 15 for over-
                                • has not effected the supply shown on            night expenses, i.e. EUR 56.80 altogether
                                   the invoice,                                   (inclusive of 10 % VAT). In the accounts
                                owes the amount of VAT shown.                     the lump sum travel expenses are entered
                                                                                  as a net expense of EUR 51.64 and it is
                                            Input tax in the case of              possible to claim input tax to the extent
           For detailed information on      per diem allowances and               of EUR 5.16.
 “per diem and overnight allowances“        overnight allowances
  see p. 60 and “Lohnsteuerrichtlinien                                           Instead of the lump sum deduction for over-
 2002“ (wage tax guidelines 2002) at         In the case of trips made in        night expenses it is also possible to calculate
    www.bmf.gv.at/steuern/richtlinien.       Austria which are exclusively       the deduction of input tax on the basis of
                                             for business purposes it is pos-    the actual expenses for overnight stays
                                             sible to deduct input VAT. You      including breakfast in an accommodation
                                can calculate the pro rata share of VAT          you have chosen. Of course this requires an
                                amounts included in the lump sum per diem        invoice which meets the requirements of
                                allowances and overnight allowances pro-         Sec. 11 VATA (cf. “The formal requirements of
                                vided for income tax puposes (Sec. 13 VATA).     an invoice“, p. 40).
                                This right is only granted if the trip takes
                                place in Austria provided the following pro-     In cases where an employer sends an
                                cedure is observed: The per diem allowances      employee of his enterprise on a trip an anal-
                                and overnight allowances are regarded as         ogous legal rule applies: Input tax is only
                                tax-inclusive amounts and the deductible         deductible on the basis of statutory per
                                input tax included in such amounts has to        diem and overnight allowances. In the case
                                be calculated by applying a tax rate of 10 %.    of overnight expenses there is again the
                                In the case of per diem allowances which         option to calculate the deduction of input
                                serve to compensate for additional food and      tax on the basis of the actual expenses. In
                                drink expenses – as a result of the trip – the   this case it makes no difference whether the
                                maximum basis allowed for the calculation        invoice issued for the accommodation
                                of input tax from tax-inclusive amounts is       shows the name of the entrepreneur or the
42                              the (pro rata) lump sum amount as laid           name of the employee.
Deduction of input tax is only allowed if a        Note:
document is issued which provides informa-         You find a current list              The gross amounts of expenses for
tion on the time, aim and purpose of the trip,     of minilorries, box-type              cars, mixed vehicles and motorcy-
the person concerned and on the amount from        vans and minibuses recog-             cles constitute business expenses.
which the input tax is calculated (Sec. 13         nized for tax purposes               Any value added tax shown on the
(4) VATA). Since such documents must be            at www.bmf.gv.at under                        invoice constitutes a cost.
available anyway in the accounting system          “Steuern“ (taxes), menu
or in the records for the purpose of calcu-        option Umsatzsteuer/In-
lating the deduction of business expenses it       formationen (value added
is not necessary to issue a special document       tax/information).
for value added tax purposes.
                                                  Lump sum deduction
Input tax in the case of cars,                    of input tax
mixed vehicles and motorcyles
                                                  There is also a more simple way to deter-
In the case of cars, mixed vehicles and           mine deductible input tax: For certain entre-
motorcycles it is not possible to claim input     preneurs it is possible to calculate the
tax, apart from few exceptional cases (e.g.       deductible amounts of input tax on a lump
motor vehicles of driving schools and taxi        sum basis. For details see chapter on “Lump
cab businesses). This applies to the acquisi-     sum deduction of input tax“, p. 67.
tion, rent and current expenses for operation
and maintenance (e.g. fuel, maintenance,          I. Export supplies
repair, toll, tax disc for highways, loading on   of goods
to railway, garage) since the above men-
tioned supplies are deemed to be effected         Supplies to recipients in “third          Third states are those countries
for non-business purposes (Sec. 12 (2) (2) (b)    States“ are normally exempt             which are not members of the EU.
VATA). Even in cases where the taxpayer uses      from VAT (export supplies of
a car for business purposes to the extent of      goods, Sec. 7 VATA). It is never-
100 % (e.g. as a commercial agent) the            theless possible to deduct input taxes.
deduction of input tax is prohibited.
                                                  Export supplies of goods are exempt
 Example:
 In his business location an entrepreneur         • if the entrepreneur has transported or
 rents a space in a garage for his car which        dispatched the goods to the foreign
 forms part of his business assets. The             country, or
 rental payments must be entered in the
 accounts as gross amounts and no deduc-          • if the transaction has been made with
 tion of input tax is allowed.                      a foreign entrepreneur who is the re-
                                                    cipient, provided the foreign recipient
Even though it is not allowed to deduct             transports or dispatches the goods to
input tax on motor-cars, mixed vehicles             the foreign country, or
and motor cycles you may deduct your
input tax on motor vehicles which are             • if the transaction has been made with a
expressly classified as minilorries, box-type       foreign recipient who exports the goods
vans or minibuses by the Ministry of                in his personal luggage, provided the re-
Finance.                                            cipient has no domicile or habitual abode                                  43
IX. VALUE ADDED TAX

                                      within the territory of the Community,               quent month, VAT becomes chargeable one
                                               the goods are exported within               month later. Therefore it may well be that
                                               3 months after the supply and               you must pay VAT to the tax office even
     Territory of the Community means          the total invoice amount                    though your business partner is still owing
        Austria and the territory of the       exceeds EUR 75 (“tourist                    you the invoice amount.
               other EU Member States.          exportations“).
                                                                                           Examples of the invoice basis:

                                     Additional requirements        Supply               Issue       Tax becomes            Tax
                                     for the tax                   of goods           of invoice      chargeable        payable on
                                     exemption are:                 10 July            10 July        end of July      15 September
                                                                    10 July           4 October      end of August      15 October
                                     • the export proof;
                                       and
                                                                                           Cash receipts basis of accounting
                                     • the book proof.
                                                                                           In this case the tax becomes chargeable at
                                                                                           the end of the month in which the payment
                                     Where no export proof or book proof can be            is made, regardless of the date on which the
                                     substantiated, the tax exemption is disal-            supply of goods or services is made.
                                     lowed in the case of a tax audit. In this case
                                     you must pay VAT, regardless of whether or             Note:
                                     not you can subsequently claim the tax                 On request it is possible to choose the
                                     from your recipient.                                   invoice basis instead of the cash receipts
                                                                                            basis!

                                     J. Chargeability of tax                               This method of taxation is designed for:
                                                                                           • agricultural and forestry enterprises
                                  A distinction is made between the invoice                    and traders that are not obliged to keep
                                  basis of accounting (“taxation on the                        books; and
                                  basis of agreed consideration“, Sec. 19 (2)              • liberal professions (regardless of the
                                  (1) (a) VATA) and the cash receipts basis of                 amount of their turnover);
                                  accounting (“taxation on the basis of                    • enterprises in the fields of energy
                                                received consideration“, Sec.                  generation and waste disposal; and
         The invoice basis of accounting        17 (1) and (2) VATA).                      • all other entrepreneurs (e.g. lessors)
                     is the normal case!                                                       whose total turnover does not exceed
                                                Invoice basis                                  EUR 110,000 in one of the two
                                                of accounting                                  preceding years.

                                     This method is based on the invoices issued
                                     in a calendar month. The tax liability arises     Examples      of the cash receipts basis:
                                     at the end of the month
                                     in which the supply of        Supply          Payment           Tax becomes            Tax
                                     goods or services has        of goods                            chargeable        payable on
                                     been made. If the in-         10 July          20 July           end of July      15 September
44                                   voice is issued in a subse-   10 July         30 June            end of June       15 August
A distinction must be made between the date         A VAT liability must be paid to the tax office
on which the tax becomes chargeable and the         no later than the 15th day of the second
due date for payment of tax, i.e. the date on       calendar month (where the preliminary VAT
which the tax must be paid at the latest.           return is prepared for a calendar quarter
                                                    the due dates are 15 May, 15 August,
 Note:                                              15 November and 15 February).
 The value added tax is payable on the
 15th day of the second calendar month               Example:
 following the end of the period to which            Payments on a monthly basis: The VAT lia-
 the preliminary VAT return relates. This            bility for the month of May must be paid
 period may be the calendar month or the             on 15 July.
 calendar quarter.                                   Payments on a quarterly basis: The VAT
                                                     liability for the third calendar quarter (July
                                                     to September) is payable on 15 November.
K. Preliminary VAT return
                                                    It is absolutely necessary to indicate on the
Value added tax is a self-assessment tax. The       payslip the period, i.e. the calendar month or
preliminary VAT return, which must normally         calendar quarter in question, and the amount
be prepared on a monthly basis, compares            of prepayment.
output taxes with input taxes. If output taxes
are higher, the result is a VAT liability or pre-   Entrepreneurs whose supplies in the preceding
payment. A credit or surplus results if the         calendar year do not exceed EUR 100,000 are
input taxes are higher:                             not obliged to file a preliminary return.
                                                    However, if there is a VAT credit you must
   output tax (consideration x tax rate)            report to your tax office the surplus of input
   - deductible input tax                           tax via FINANZOnline or by using form U 30.
   = VAT liability/VAT credit
                                                    There is also an obligation to file preliminary
 Note:                                              returns in cases where the entrepreneur was
 The calculation of VAT is documented at            obliged by the tax office to file preliminary
 the time when the data are entered into            returns on a regular basis, or where a surplus
 FINANZOnline or into form U 30. Please             results for the reporting period to which the
 retain a copy of the preliminary VAT               preliminary return relates, or where it is not
 return or of the electronic return.                possible to make the prepayment in time or
                                                    to effect full prepayment.
The VAT liability for the period to which the
preliminary VAT return relates must be paid         The preliminary VAT return must
to the tax office. A surplus of input taxes         be transmitted electronically via       You find more detailed information
must be reported and is credited to the tax-        FINANZOnline, except where this           on the filing of electronic returns
payer’s tax account.                                is unacceptable to the entrepre-          on the Internet at www.bmf.gv.at
                                                    neur because of lack of technical                     under “FINANZOnline“.
However, for reasons of simplification, entre-      equipment (e.g. lack of Internet
preneurs whose supplies do not exceed               connection). Where the prelimi-
EUR 22,000 in the preceding calendar year           nary returns are filed via the “tax representa-
prepare the preliminary VAT return for the          tive“, the technical equipment of the repre-
calendar quarter (Sec. 21 (2) VATA).                sentative is relevant.                                                        45
IX. VALUE ADDED TAX

                                 L. Import VAT                                     Note:
                                                                                   You find forms U 15, Verf 15, 16 and 24 at
                                 In addition to the option to pay import VAT       www.bmf.gv.at under “Formulare“ (forms).
                                 to the customs office and subsequently
                                 deduct it as input VAT (if all requirements      The VAT identification number is used only
                                 are met) on the preliminary VAT return to be     for the purpose of your business. You need
                                 filed with the tax office, from 1 October        this number, among other things, if you sup-
                                 2003 debtors of import VAT, who are reg-         ply goods to another country of the EU or
                                 istered for VAT purposes in Austria and import   acquire goods from another Member State in
                                 goods for their enterprise, may pay import       your capacity as an entrepreneur.
                                 VAT monthly, however not to the customs
                                 office but to the tax account at the tax of-     By indicating your VAT identification number
                                 fice. Such payment is made on the basis of       you show to your supplier that you want to
                                 the amount specified in a customs notice.        buy tax-free as a recipient (acquirer) and
                                                                                  that the acquisition is taxable in Austria.
                                 The requirement for applying the new rule is
                                 that the customs declaration concerning the      If you acquire goods in another Member State
                                 release for free circulation already contains    as a private person – e.g. in the course of a
                                 the statement that one wishes to make use        travel abroad – you do not need a VAT identi-
                                 of this rule.                                    fication number. Also, you are not allowed to
                                                                                  show this number if you do have a VAT iden-
                                                                                  tification number as an entrepreneur but you
                                              M. Supplies                         purchase the goods for private purposes. The
     The movement of goods within the         within the EU                       goods are still subject to foreign value added
           EU is not affected by border                                           tax (“country of origin principle“).
            controls or customs duties.        Value added tax law has under-
                                               gone a number of changes           In addition to your VAT identification num-
                                               since Austria’s accession to the   ber, always tell your EU business partner
                                 EU. In the case of intra-Community transac-      your business data as well (which can be
                                 tions it is now also necessary to bear in mind   seen from the notice assigning the VAT iden-
                                 the Annex to the VATA, i.e. the Single           tification number or from every notice you
                                 Market rules. These rules must be applied in     receive from your competent VAT office).
                                 cases where supplies are made in relation to
                                 other Member States.                             If you make supplies of goods to other
                                                                                  Member States, your customer is obliged to
                                 The VAT identification number                    inform you of his VAT identification number
                                                                                  together with his business data. By doing so
                                 If you are an entrepreneur and have business     your customer substantiates that he buys
                                 relations with EU countries it is necessary to   the goods for his business and you don’t
                                 use the so-called VAT identification number.     have to pay tax on the supply of goods in
                                                                                  Austria, provided that the additional require-
                                 You have to apply for this number with your      ments for a tax-exempt intra-Community
                                 tax office either by using form U 15 or al-      supply of goods are met.
                                 ready when filling in the questionnaire (Verf
                                 15, 16, 24) for the purpose of being assigned    In the case of “intra-Community supplies of
46                               a taxpayer identification number.                goods“ you are obliged to file with your
competent VAT office a “recapitulative          The VAT identification number is quite a sig-
statement“ on a quarterly basis, either via     nificant indication – however, not the only
FINANZOnline, Eingaben/Erklärungen (let-        one – that the recipient is an
ters/declarations), or by using form U 13.      entrepreneur. In order to en-
                                                able you to make sure of the          Intra-Community supplies of goods
If your foreign customer does not show a        validity of a business partner’s              are supplies of goods between
VAT identification number, the sale must        VAT identification number the                      entrepreneurs in different
be subject to Austrian VAT as a sale to a       so-called “verification proce-                            EU Member States.
private person.                                 dure“ was introduced through-
                                                out the EU. In the course of
Intra-Community supply of goods                 this procedure you can ask the Central
                                                Liaison Office of the Federal Ministry of
If you make supplies of goods to another        Finance whether your business partner’s
Member State of the EU, check if you can        VAT identification number is actually valid
use the tax exemption provided for such         in the other Member State (see chapters on
supplies. The tax exemption for intra-          “Central Liaison Office“ and “Verification
Community supplies of goods depends on          procedure“, p. 48).
the following conditions (Art. 7 (1) VATA):
• the entrepreneur or the recipient trans-      Intra-Community acquisition
    ports or dispatches the goods to the rest   of goods
    of the territory of the Community;
• the recipient is an entrepreneur who has      The intra-Community acquisition of goods is
    acquired the goods for his business;        the quid pro quo for the intra-
• the acquisition of the goods is taxable       Community supply of goods. If
    in the hands of the recipient in the        you, as an Austrian entrepre-       An intra-Community acquisition of
    other Member State;                         neur, buy goods for your              goods is effected when goods are
• the first two requirements must be            business within the territory of            introduced into Austria from
    evidenced by book proof, including the      the Community, you will indi-                  another EU Member State
    indication of the VAT identification        cate your VAT identification                      for business purposes.
    number (Art. 7 (3) VATA).                   number. This has the effect
                                                that your business partner is
Moreover, the invoice must meet the             able to sell the goods without value added
following formal requirements:                  tax. Thus, from the perspective of your
• information about the tax exemption           business partner, a tax-exempt intra-
    (Art. 11 (1) VATA), and                     Community supply of goods is effected.
• indication of the VAT identification          However, you, being an Austrian entrepre-
    number of the supplying entrepreneur        neur, effect an intra-Community acquisition
    and his recipient (Art. 11 (2) VATA).       of goods, which gives rise to a “taxable
                                                acquisition“ (Art. 1 (1) VATA).
In such cases the VAT identification num-
ber of the recipient is of importance. By       The acquired goods are subject to VAT (20 %
using this number your customer proves          or 10 %), but, as a rule, only in your ac-
that he acquires goods for his business as      counts. If you are entitled to deduct input
an entrepreneur and that he subjects the        VAT, you may deduct the VAT as calculated
supply of goods to tax on acquisitions in       by you as input VAT on the same preliminary
his Member State.                               VAT return (Art. 12 (1) (1) VATA). In this case                                 47
IX. VALUE ADDED TAX

                                   the whole procedure takes place only on             Code   Country          Code   Country
                                   paper and no payments are required.                 AT     Austria          IE     Ireland
                                                                                       BE     Belgium          IT     Italy
                                    Example:                                           CY     Cyprus           LT     Lithuania
                                    A German wholesaler supplies stereo                CZ     Czech            LU     Luxembourg
                                    systems to an Austrian retailer. This sup-                Republic         LV     Latvia
                                    ply of goods is tax-exempt in Germany.             DE     Germany          MT     Malta
                                    However, in Austria it is taxed at the VAT         DK     Denmark          NL     The
                                    rate of 20 % (so-called “tax on acquisi-           EE     Estonia                 Netherlands
                                    tions“). This tax imposed on the acquisition       EL     Greece           PL     Poland
                                    may be deducted by the Austrian retailer           ES     Spain            PT     Portugal
                                    as input tax, provided that he is entitled         FI     Finland          SE     Sweden
                                    to deduct input tax.                               FR     France           SI     Slovenia
                                                                                       GB     Great Britain    SK     Slovakia
                                   Central Liaison Office

                                   The Central Liaison Office of the Federal          Verification procedure
                                   Ministry of Finance in 1034 Vienna, Erd-
                                   bergstraße 192-196, is the office in Austria       In order to enable entrepreneurs to make
                                   exclusively responsible for confirmation of the    sure that the VAT identification number of
                                   validity of a VAT identification number.           an EU business partner is valid, the so-called
                                                                                      “verification procedure“ was introduced on
          Replies to inquiries concerning        • Tel.: (0810) 005310 and            the European Union level.
        confirmation of the validity of a
     VAT identification number are given         • Fax: (0810) 005012.                The Central Liaison Office applies a two-
                  from Monday to Friday                                               stage verification procedure for you. In your
               from 7.30 am to 6.00 pm.           You may ask for the requested       inquiry to the Central Liaison Office you may
                                                  information either by telephone     choose between two stages of information:
                                                  or fax from all over Austria, and
                                   in both cases the local fees are charged. Of       • stage 1 (simple verification procedure):
                                   course it is also possible to make inquiries in      at this stage the check concerns only the
                                   writing. At the beginning of every VAT iden-         validity of a VAT identification number
                                   tification number there are two letters which        assigned by another Member State. No
                                   represent the code for the country (“country         reference is made to a specific entrepre-
                                   code“) according to the following table:             neur. In principle, positive verifications at
                                                                                        stage 1 are sufficient for the protection
                                    Note:                                               of legitimate expectations. The verifica-
                                    Every VAT identification number consists of         tion procedure at stage 1 is also possible
                                    two-digit country codes and 8 to 12 addi-           via FINANZOnline, Eingaben/Anträge/
                                    tional digits which may also contain letters        UID-Bestätigung (letters/applications/
                                    – depending on the EU State (e.g. Ireland,          verification of VAT identification num-
                                    the Netherlands, Spain). At the beginning           ber). This inquiry is also available to you
                                    of the Austrian VAT identification number           for verification of the Austrian VAT iden-
                                    there is always the country code AT, the            tification number of another Austrian en-
                                    first digit is the letter U which is followed       trepreneur. You may also make an inquiry
48                                  by eight figures (e.g. ATU12345678).                via http://europa.eu.int/comm/taxation
   _customs/vies/de/vieshome.htm to check if     If you make intra-Community supplies of
   a VAT identification number is valid.         goods, you must note the following time limits
                                                 for filing the recapitulative statement:
• stage 2 (qualified verification procedure):    30 April, 31 July, 30 October and
  at this stage the check concerns the           31 January (Art. 21 (3) VATA). As
  validity of a VAT identification number        a principle, the recapitulative                 As a principle, the recapitulative
  assigned by another Member State in            statement must be transmitted                    statement must be transmitted
  connection with a specific name and a          electronically via FINANZOnline,                 electronically via FINANZOnline,
  specific address in another Member             Eingaben/Erklärungen                          Eingaben/Erklärungen (letters/de-
  State. The inquiry at stage 2 in most          (letters/declarations), except               clarations), except where electronic
  cases is only meaningful if there are          where electronic transmission is          transmission is unacceptable becau-
  doubts whether the information provided        unacceptable because of lack of                se of lack of technical equipment.
  by the recipient of the goods is correct,      technical equipment. It is only
  including his entrepreneurial status, or if    under such circumstances that
  business relations are established with a      the use of official forms is still allowed. In case
  business partner for the first time.           of electronic transmission the time limit is
                                                 extended by 15 days: 15 May, 15 August,
 Note:                                           15 November and 15 February.
 For the inquiry or the verification you need
 form U 16 which you find at www.bmf.gv.at
 under “Formulare“ (forms).                       Example:
                                                  The data of the recapitulative statement
Recapitulative statement                          for the first calendar quarter of a year
                                                  (January to March) must be submitted
The Member States of the EU have a com-           electronically no later than 15 May.
mon system of exchange of information for
intra-Community supplies of goods (VAT
Information Exchange System, VIES).              N. Obligation to file
                                                 a VAT return
Entrepreneurs participating and making sup-
plies in the Internal Market have to file with   Every entrepreneur must file a tax return for
the tax office – which is responsible for the    the past calendar year. Small entrepreneurs
levy of VAT – a “recapitulative statement“ on    are exempt from filing a VAT return if their
a quarterly basis. The recapitulative state-     turnover (excluding supplementary supplies)
ment must show the VAT identification            does not exceed EUR 7,500 and if they have
numbers of relevant business partners and        not received a return from the tax office. You
the total value of all intra-Community sup-      find detailed information in the chapter on
plies of goods effected to them in a calendar    “Small entrepreneurs“, p. 38.
quarter. The information contained in the
recapitulative statements is exchanged           The VAT return must be filed by 30 April of
regularly by the Member States.                  the following year or, if transmitted elec-
                                                 tronically via FINANZOnline, by 30 June of
If you do not make intra-Community sup-          the following year (Sec. 134 (1) FTPA). In
plies of goods in a calendar quarter, please     specific situations the period for filing the
do not submit a recapitulative statement for     tax return may be extended if the request
this calendar quarter!                           is founded (Sec. 134 (2) FTPA). If you are                                           49
IX. VALUE ADDED TAX

                                   represented by a “tax representative“ you
                                   normally have more time at your
                                   disposal for filing your tax return.

                                     Note:
                                     You find more detailed information on
                                     FINANZOnline under “Electronic tax
                                     returns“, p. 18, or at www.bmf.gv.at under
                                     “FINANZOnline“.



                                   O. Assessment of VAT

                                After the end of the calendar year (i.e. the
                                assessment period) you are assessed for tax
                                as an entrepreneur (Sec. 21 (4) VATA). In this
                                case the total of all payments already made
                                and amounts credited is compared with the
                                amount shown on the VAT return. In the
                                ideal case these values should be the same,
                                this means that the annual return is only the
                                summary of the monthly or quarterly pre-
                                liminary returns. If the assessment results in
                                an additional amount of tax, this means that
                                             the prepayments made during
                                             the year have been too low. The
     For details see chapter on “The         VAT should have been paid no
          payment of late payment            later than 15 February.
                    penalties“, p. 22.       Therefore, additional tax may
                                             give rise to the obligation to pay
                                             a late payment penalty.

                                   The VAT notice of assessment is issued in
                                   writing. An assessed VAT liability must be
                                   paid within one month after the notice has
                                   been served (Sec. 210 (4) FTPA).




50
X. OTHER TAXES

A. Standard                                        advertising services (television station, radio
consumption levy                                   station, publisher of a newspaper, etc.) in
                                                   return for the actual advertising process. The
This tax is levied on motor-cars, mixed vehicles   tax rate is 5 % of the tax base.
and motor-cycles. The standard consumption
levy (Normverbrauchsabgabe-NoVA) is usually         Please note:
paid by the car dealer (or by the leasing enter-    Advertising on the Internet is not taxable!
prise) and is therefore included in the purchase
price. The purchaser himself must pay the
standard consumption levy to the tax office        D. Electricity levy
only if the motor vehicles are imported by
himself. The same applies to new vehicles with     The electricity levy is payable on the supply or
regard to import VAT.                              consumption of self-generated electrical
                                                   energy. Since 1 June 2000 the levy is EUR 0.15
The amount of tax depends on the (net) value       per kilowatt hour and must be paid by energy
of the vehicle and on the fuel consumption.        supply enterprises.
The maximum amount of tax is 16 % of the
value.
                                                   E. Natural gas levy

B. Tax on motor vehicles                           The natural gas levy is payable
                                                   on the supply of natural gas.        Since 1 January 2004 the levy is EUR
As a rule, you pay – together with the liabil-     Since 1 January 2004 the levy       0.066 per cubic metre of natural gas.
ity insurance premium for your motor-car or        is EUR 0.066 per cubic metre
your motor-cycle – the so-called “engine-          of natural gas. The levy must
related insurance tax“. This tax is subse-         be paid by energy supply enterprises.
quently transferred to the tax office by the
insurance agency. The tax on motor vehicles
(Kraftfahrzeugsteuer) is only payable on           F. Coal levy
motor vehicles for which the insurer is not
obliged to pay the engine-related insurance        The coal levy was introduced on 1 January
tax (for instance, lorries with a total weight     2004. The levy must be paid by the supplier
of more than 3.5 tonnes).                          of coal and amounts to EUR 0.05 per kilo-
                                                   gram of coal.

C. Advertising levy
                                                   G. Refund of
Since 1 June 2000 there is a nationwide and        energy levy
uniform advertising levy (Werbeabgabe)
which replaces the advertising and publicity       Until 2001 businesses whose activity consists
levies of the provinces and municipalities.        primarily in the production of goods could
The levy is payable on advertising by means        claim a refund of electricity levy and natural
of radio, television, newspapers and maga-         gas levy in so far as these levies exceed, in
zines, and on outdoor advertising (for instance    total, 0.35 % of net production value. The
pamphlets, banners). The tax base is the con-      excess amount is paid out by the tax office
sideration received by the provider of the         after deduction of an amount of EUR 363.                                    51
X. OTHER TAXES

        From 2002 also service providers are entitled
        to a refund of energy levies, the require-
        ments being insignificantly changed. From
        2004 the refund of energy levy will be
        adapted to the European Union Directive on
        energy levy, so that a claim under the new
        refund rules cannot be made before the end
        of 2004, which actually means not before
        15 February 2005.




52
XI. BUSINESS EXPENSES

A. Definition                                     and examination at the request of the tax
                                                  authorities (Sec. 138 (2) FTPA). The system of
The term business expenses means all              documentation is closely associated with the
expenses and expenditures which arise from        adequacy of the accounting system.
the operation of the business (Sec. 4 (4) ITA).
Business expenses reduce the profit and           Self-prepared documents
consequently reduce the income tax base
and corporation tax base. Expenses are            Exceptions to this principle, if any, exist for
deductible if the expenses                        internal documents which, as a rule, are recog-
                                                  nized as evidence only if no
• are connected with a business activity,         external document is available
  and                                             because of the nature of the           For the prudent trader the principle
                                                  expense (e.g. tips). Internal                applies: No book-keeping entry
• from the perspective of the entrepre-           documents must indicate the                         without documentation!
  neur, are incurred for his business or          date, amount and reason for
  are incurred involuntarily, and                 payment, the quantity and type
                                                  of the goods supplied (e.g. a second-hand
• are not covered by a rule which                 dealer who makes purchases from private
  disallows their deduction, in particular        persons) or services received. The recipient of
  Sec. 20 ITA (among other things, living         the payment must be specified, if possible. The
  expenses, personal expenses, etc.).             word “recipient” is an important key-word.

You see, the term “business expenses” is a        Specification of recipient
very broad one. What is regarded as neces-
sary for the business by one entrepreneur is      If you want to deduct expenses as business
considered unimportant by another. There-         expenses, the tax authorities may request
fore the deduction of many business ex-           you to specify the creditors or the recipients
penses depends on the respective industry.        of such amounts (specification of names and
                                                  addresses; Sec. 162 FTPA). The reason is
Hereinafter we inform you about why you need      quite clear. What constitutes an expense (a
accurate documents, what is meant by the          business expense) for one taxpayer will nor-
concept of “anticipated business expenses” and    mally be a receipt (a business receipt) for
what types of business expenses are connected     another. Problems may occur in the case of
with a rule which disallows deduction.            documents relating to commission fees, fees
                                                  paid to subcontractors, or remuneration for
                                                  third-party services (e.g. for temporary per-
B. Documentation                                  sonnel), from which it is not quite clear who
                                                  has received the amounts of money paid out.
For a payment to be recognized as a busi-         In such cases the tax authorities are autho-
ness expense it is not sufficient that the pay-   rized to request the taxpayer to specify the
ment has been made for business purposes.         recipients. If the entrepreneur refuses to
As an entrepreneur it is your task to collect     provide the requested information, then it is
documents since business expenses usually         compulsory not to recognize the deductions
must be substantiated by written documents        which have been claimed. Even if there is no
(invoices, commercial documents, official         doubt that the payments have actually been
documents, deeds) and submitted for access        made and are businessrelated.                                                 53
XI. BUSINESS EXPENSES

        C. Start-up expenses                               deductible expenses within the meaning of
                                                           Sec. 20 ITA. This legal provision enumerates the
        Even before a business is established it is        following so-called “non-deductible expenses”:
        necessary to take measures involving costs.
        Such “anticipated business expenses” consti-       • Household expenses and expenses for the
        tute tax-deductible amounts.                         maintenance of family members. Such ex-
                                                             penses include e.g. rent, lighting, heating,
         Example:                                            clothing, food, child-care, household ap-
         Expenses for the acquisition of business            pliances and equipment for entertainment,
         assets, rental payments for business prem-          recreation, leisure, (secondary) residence
         ises before opening of the business, trips to       (except business-related dual household
         potential customers and suppliers, con-             maintenance!), personal-use property such
         sulting fees concerning the intended legal          as glasses, watches, hearing aids.
         form, etc.
                                                           • Living expenses, even if the expenses re-
        The intention to establish a business must be        sult from the taxpayer’s economic or social
        substantiated by appropriate documents, e.g.         position and are incurred for the promo-
                                                             tion of his profession or activity. Such ex-
        • application to register a trade;                   penses include e.g. balls, birthday parties.

        • correspondence with potential                    • Expenses for business or professional
          business partners;                                 purposes which also concern the taxpay-
                                                             er’s conduct of life, in so far as such
        • construction plans submitted to                    expenses are unreasonably high under
          authorities for approval;                          common view. This applies to expenses in
                                                             connection with cars and mixed vehicles,
        • loan agreements;                                   passenger airplanes, sports and luxury
                                                             boats, hunting, woven carpets, tapestries,
        • advertisements for the supply of labour;           and antiques.

        • cost and turnover planning.                      • Travel expenses, unless such expenses
                                                             are deductible according to Sec. 4 (5)
                                                             and Sec. 16 (1) (9) ITA.
        D. Non-deductible
        expenses                                           • Expenses for a home office situated with-
                                                             in the housing unit, including expenses
        It has already been indicated that not all ex-       for furniture and equipment. If a home
        penses reduce profits. On the contrary, a dis-       office which is situated within the housing
        tinction must be made between business               unit is the centre of the taxpayer’s busi-
        expenses and non-business expenses. In the           ness or profession as a whole, then the
        case of costs in connection with cars, real es-      expenses attributable to such home office,
        tate, travel expenses, entertainment expenses        including expenses for furniture and
        and advertising-like expenses, as well as in the     equipment, are deductible.
        case of salaries for close relatives employed in
        the enterprise, the tax authorities examine        • Entertainment expenses; such expenses
54      closely if there is a connection with non-           include, for instance, gifts to business
   partners on certain occasions (Christmas,   • staff expenses (wages, salaries,
   New Year, birthday). Expenses for busi-       wage-related taxes)
   ness meals are deductible to the extent
   of 50 % if the taxpayer substantiates       • consulting fees (for lawyer, tax
   that the entertainment of business part-      consultant, etc.)
   ners serves for advertising purposes and
   the business or professional purpose is     • travel expenses, cf. p. 59
   predominant.
                                               • advertising
• Voluntary donations and donations to
  dependents, even if such donations are       • services received (outside services)
  made on the basis of a binding agreement
  (exception: deductibility of donations       • purchase of goods and materials
  according to ITA).
                                               • communications (e.g. telephone, fax,
• Donations in cash and in kind the grant        Internet, postage)
  or acceptance of which gives rise to court
  proceedings, e.g. commission fees, bribes.   • office materials

• Taxes on income and other personal taxes     • technical literature and magazines
  as well as value added tax levied on self-
  supplies in so far as such self-supplies     • interest on borrowed capital.
  constitute removals of goods or non-
  deductible expenses.                         Depreciation

                                               Everybody knows that practically nothing
E. Examples of business                        lasts forever and that assets are subject to
expenses                                       wear and tear. Therefore, for tax purposes it is
                                               possible to deduct as a business expense the
The following survey shows you the most fre-   decline in value of assets by
quent business expenses:                       way of depreciation, or, to be               Please note: Tax depreciation is
                                               more precise, by way of tax                           allowed for buildings!
• depreciation and tax depreciation,           depreciation according to
  cf. p. 55                                    Sec. 7 ITA.

• low-cost assets, cf. p. 59                   However, the following assets are not subject
                                               to tax depreciation:
• compulsory insurance contributions
                                               • real estate (land);
• compulsory contributions to hardship
  relief institutions of the Chambers for      • works of art (e.g. paintings, sculptures);
  the self-employed
                                               • antiques;
• lease payments for business assets
                                               • precious carpets which do not cover
• rent for office                                the floor.                                                                    55
XI. BUSINESS EXPENSES

                                Acquisition costs and production costs           planning and development) as well as over-
                                The basis for computing tax depreciation is      head costs relating to materials and pro-
                                the purchase cost or production cost of the      duction constitute the basis.
                                relevant asset. Acquisition costs not only
                                include the purchase price as such but also      Useful life and depreciation rate
                                all expenses which are necessary to become       After the basis for depreciation has been
                                the owner of the asset in order to use it        computed correctly, the cost must be
                                within the enterprise.                           spread evenly over the estimated useful life.
                                                                                 It is only allowed to deduct a uniform
                                            Examples: acquisition costs          depreciation amount for every year in
   Acquisition costs not only include                                            which the asset is used (straight-line
 the purchase price as such but also        • transport costs,                   method of tax depreciation). In order to
    all expenses which are necessary                                             compute the annual amount of tax depre-
   to become the owner of the asset         • customs duties,                    ciation, the acquisition or production costs
             in order to use it within                                           are divided by the useful life expressed in
                       the enterprise.      • commissions for inter-             terms of years.
                                              mediary services,
                                                                                  Note:
                                • fees for lawyers and notaries,                  The estimated useful life is the number of
                                                                                  years during which an equipment predict-
                                • real estate transfer tax,                       ably can be used in the business. It must
                                                                                  be determined by reference to estimate or
                                • costs for installation and laying               values based on experience.
                                  the foundations.
                                                                                 Apart from some special rules laid down in
                                Such expenses must be included in the            Sec. 8 ITA, which will be discussed below,
                                purchase price. Thus they increase the acqui-    the law does not say anything about the
                                sition cost and, strictly speaking, constitute   length of the useful lives of the various
                                the basis for depreciation as such.              assets. This has to be estimated by the
                                                                                 entrepreneur on a case-by-case basis.
                                 Example:
                                 In order to be able to place in service         In practice certain indicative values have
                                 the newly purchased computer network            been established. In Germany there are
                                 extensive work is necessary by an elec-         even official tax depreciation tables which
                                 trical engineer in the office rooms. The        can also be used in Austria (paragraph
                                 actual full costs do not constitute             3115 of the income tax guidelines 2000).
                                 expenses for maintenance and repair             Nevertheless, the useful life has to be
                                 but increase the purchase price of the          determined on a case-by-case basis by
                                 asset.                                          taking into account technological and eco-
                                                                                 nomic aspects. For instance, the useful life
                                The procedure is similar as far as produc-       for fixtures and fittings is usually ten years.
                                tion cost is concerned. All expenses consti-     The costs of machinery are usually depre-
                                tute the basis for depreciation. In the case     ciated over a period of five years, in the
                                of assets produced within the enterprise         case of EDP equipment four years are
                                itself the cost of materials and direct labour   usually sufficient.
56                              cost, special production costs (cost of
 Example:                                         the annual amount is depreciated. In
 Office equipment consisting of a writing         contrast, the entire annual amount is de-
 desk, a swivel chair and cupboards for           preciated in the case of a full year’s depre-
 files is purchased for a total amount of         ciation.
 EUR 2,000 in January 2002 and is imme-
 diately used. The entrepreneur estimates      The same principle is also                  The period of tax depreciation
 that the equipment will have to be            applied if a fixed asset is re-                   does not begin when the
 replaced after 10 years. Therefore a use-     tired from service. If the asset               respective asset is acquired
 ful life of 10 years has to be assumed.       is retired from service during           or produced but rather when it is
 The annual amount of tax depreciation is      the first six months of the                               placed in service.
 computed by dividing the acquisition          year, then one-half year’s
 costs by the useful life:                     depreciation is applied. If it is
                                                        retired from service during the last
                                                        six months of the year, then full
 acquisition costs (EUR)          2,000                 year’s depreciation is applied.
                                =       = EUR 200
 useful life (years)                 10



 Therefore, in 2002 only 1/10 of EUR
 2,000, i.e. only EUR 200, can be deducted         Example:
 as a business expense, in 2003 the                A machine which was purchased on
 second 1/10, in 2004 the third 1/10, etc.         30 October 2001 for EUR 10,000 is
 In 2011 the office equipment is fully             immediately used for the production of
 depreciated. However, if the equipment            goods. The useful life is 5 years, there-
 is still used, the tax depreciation in the        fore the tax depreciation per year is
 last year is only EUR 199: There remains          EUR 2,000. In 2001 only half of the tax
 a so-called reminder value of EUR 1               depreciation deduction, i.e. EUR 1,000,
 until the office furniture is finally re-         is allowed and the full amount of
 moved from the enterprise.                        EUR 2,000 cannot be claimed until 2002.

Placed in service
The period of tax depreciation does not           In contrast to double-entry book-keeping,
begin when the respective asset is acquired       the essential criterion in cash accounting is
or produced but rather when it is placed in       that a business expense cannot be deduct-
service.                                          ed before the date on which the taxpayer
                                                  has actually paid for it (you find details in
Note that it depends on whether the asset         the chapter on “Cash accounting”, p. 26).
is placed in service in the first six months of   This principle of cash expenses is, however,
the year (so-called “full year’s deprecia-        not applied as regards business invest-
tion”) or in the last six months of the year      ments. A cash-basis taxpayer is allowed to
(so-called “one-half year’s depreciation”).       claim a deduction for tax depreciation
                                                  already at the date he uses an asset for
One-half year’s depreciation is applied           business purposes. It is not required that
where an asset is used by the enterprise          the acquisition or production costs have
for a period not exceeding six months in          already been paid.
the relevant year. In this case only half of                                                                                  57
XI. BUSINESS EXPENSES

                                       Fixed-assets register                           tions in your accounting system. For you
                                       All entrepreneurs determining their profits     are not allowed to claim in subsequent
                                       under the cash accounting method are            years depreciation deductions you forgot to
                                       obliged to keep a register (fixed-assets reg-   claim in previous years.
                                       ister) of depreciable fixed assets used in
                                       the business (Sec. 7 (3) ITA). The register     Special rules for tax depreciation
                                       must specify each fixed asset and contain       Special legal rules exist for buildings used
                                       the following information:                      for business purposes, good will as well as
                                                                                       motor-cars and mixed vehicles.
                                       •   date of acquisition,
                                       •   acquisition or production costs,            Buildings used for business purposes
                                       •   name and address of the supplier,           Agricultural and forestry enterprises as
                                       •   estimated useful life,                      well as traders must pay attention to the
                                       •   amount of annual tax depreciation, and      following rule: where a building is used
                                       •   the amount not yet depreciated              directly for the conduct of the business to
                                           (residual value).                           the extent of at least 80 %, the tax depre-
                                                                                       ciation rate is 3 % and there is no need to
                                               There is no need to file the            substantiate the useful life of the building.
                                               fixed-assets register with the          Taxpayers who exercise liberal professions
                The residual value is the      tax office together with the tax        such as physicians, lawyers, notaries,
     difference between the acquisition        returns. It is sufficient that it is    chartered accountants, writers, etc. are
      or production costs less the total       kept properly on the date of            allowed to claim a tax depreciation rate of
               depreciation deductions.        filing. If no fixed-assets reg-         2 % for buildings which are used by them
                                               ister is kept at all or if the          for business purposes.
                                               required criteria are not met,
                                   the right to claim tax depreciation is not          Goodwill
                                   lost. However, a register which is found            Agricultural and forestry enterprises as
                                   faulty constitutes a fiscal irregularity            well as traders must depreciate the acqui-
                                   within the meaning of Sec. 51 of the Fiscal         sition cost of goodwill evenly over 15 years
                                   Penal Act.                                          (Sec. 8 (3) ITA).

                                       Such questions are of no relevance for           Example:
                                       accrual-basis taxpayers because under            An ambitious owner of a new enterprise
                                       Sec. 226 of the Commercial Code there is         acquires the business of a trader who
                                       already an obligation for them to present        cannot find a successor among his fami-
                                       the development of the individual items of       ly members for EUR 90,000. The total
                                       fixed assets on the balance sheet or in the      value of the inventory he has taken over
                                       notes thereto. Apart from this, under the        amounts to EUR 60,000. The excess
                                       double-entry book-keeping method it is           amount of EUR 30,000 constitutes good-
                                       required to keep a fixed-assets register         will which must be depreciated over
                                       anyway.                                          15 years. In this case the annual amount
                                                                                        of tax depreciation is EUR 2,000.
                                       Prohibition to claim depreciation
                                       for previous years                              The situation is different as regards the
                                       Please take care that you always compute        liberal professions (because Sec. 8 (3) does
58                                     properly the annual depreciation deduc-         not refer to the liberal professions). The
useful life of goodwill must be determined      of the normal value added tax scheme, the
on a case-by-case basis. However, the use-      amount of EUR 400 is the selling price in-
ful life is usually five years.                 clusive of value added tax.

Cars and mixed vehicles                          Example:
In the case of cars and mixed vehicles the       An entrepreneur acquires the following
tax lawmaker requires that the useful life is    goods for his office: an organizer for EUR
8 years (Sec. 8 (6) ITA). Exceptions are, for    400, a scanner for EUR 250, a printer for
instance, the cars of driving schools and        EUR 360 (prices exclusive of value added
taxi operators. However, there is a number       tax). The costs of all assets are business
of vehicles which are similar to a car or a      expenses which are immediately and fully
mixed vehicle in appearance but are not          deductible. If the price of the organizer
classified as such for tax purposes and,         were EUR 401 (exclusive of value added
therefore, are not subject to a limitation       tax), its acquisition costs would have to
with respect to the useful life to be applied    be depreciated over the useful life.
(small lorries and small buses within the
meaning of the Regulation Federal Gazette        Please note:
II No. 193/2002).                                Entrepreneurs who keep books must
                                                 make the immediate write-off in the year
 Note:                                           of acquisition or production while for
 You find a current list of minilorries,         cash-basis taxpayers the year in which
 box-type vans and minibuses recognized          the payment is made is of relevance.
 for tax purposes at www.bmf.gv.at under
 “Steuern” (taxes), menu option Umsatz-         Travel expenses
 steuer/Informationen (value added tax/
 information).                                  Travel expenses may include the following:

Low-cost assets                                 • transportation costs (car, taxi, public
                                                  means of transport, bicycle, etc.),
As you can see from the statements under
“Depreciation”, p. 55, the acquisition and      • additional food and drink expenses,
production costs of depreciable fixed assets
are depreciated over the useful lives of such   • overnight expenses, and
assets.
                                                • incidental expenses.
Sec. 13 ITA is, however, an exception to this
provision. If the cost of a depreciable fixed   The following transportation costs are
asset does not exceed EUR 400, then such        deductible:
asset is classified as a “low-cost asset” and
the acquisition or production costs are         • expenses for travel between home
immediately deductible as business expenses.      and place of business, and
If you are entitled to deduction of input
tax, the threshold of EUR 400 is meant as a     • all expenses for business trips regard-
net amount, i.e. exclusive of value added         less of whether such expenses are
tax. In case you are e.g. a small entrepre-       incurred for a “journey” or a “short-
neur who has not opted for the application        distance trip”.                             59
XI. BUSINESS EXPENSES
                                     Domestic travel
                                                                                           Please note:
                                     Travel expenses such as transportation costs,
                                                                                           The 25 kilometres limit is only of rele-
                                     daily expenses and overnight expenses may
                                                                                           vance if you claim per diem and overnight
                                     also be incurred in the case of domestic
                                                                                           allowances.
                                     journeys. However, in the case of a business
                                     journey it is required that a major distance is
                                                                                         Per diem and overnight allowances
                                     covered, otherwise the travel is merely clas-
                                                                                         A journey is usually associated with addi-
                                     sified as a short-distance business trip where
                                                                                         tional costs. Apart from transportation costs
                                     only transportation costs are deductible.
                                                                                         there are, in particular, food and drink
                                                                                         expenses and accommodation costs. There-
     All travel activities in the vicinity        The 25 kilometres limit                fore it is possible to deduct these travel-
          of your place of business are           You can claim per diem and/or          related additional expenses as business
          not classified as journeys for          overnight allowances for a jour-       expenses by way of lump sum amounts
                            tax purposes.         ney only if you are at least           (Sec. 4 (5) in connection with Sec. 26 (4) ITA).
                                                  25 km away from the centre of
                                                  your ordinary activities (place of     For domestic travel a maximum amount of
                                     business) for the purpose of carrying on            EUR 26.40 may be claimed as a daily allow-
                                     business or professional activities (e.g. partic-   ance. This amount is allowed for a period of
                                     ipating in contract negotiations, acquisition       24 hours. Where a journey lasts more than
                                     of customers). Even if your business journey        three hours, it is possible to claim 1/12 (i.e.
                                     is not successful, this does not affect your        EUR 2.20) for every additional hour which
                                     right to make a claim (e.g. a self-employed         has been started. Where a journey lasts more
                                     commercial agent returns home with empty            than 11 hours, the full allowance of EUR
                                     order books).                                       26.40 is deductible.

                                However, it is not sufficient that you cover a           For an overnight stay the ITA provides for a
                                distance exceeding 25 km on a single day                 lump sum amount of EUR 15 which is de-
                                but no point of the journey is more than                 ductible as an overnight allowance (including
                                             25 km away from your busi-                  breakfast). In most cases this amount will
                                             ness. Also, it is of no relevance           not be sufficient. Instead of the lump sum
    You find detailed information on         whether you pass the borders of             amount you can always claim the actual
   the subject of “milage allowance”         districts or provinces. Therefore,          expenses for the overnight stay (including
    in the Annex to the “Lohnsteuer-         if an entrepreneur who is resi-             breakfast). The above mentioned lump sum
          richtlinien 2002” (wage tax        dent in Vienna makes a trip in              amounts, however, only refer to domestic
                   guidelines 2002) at       the federal capital, this is not            travel!
   www.bmf.gv.at/steuern/richtlinien.        classified as a journey. Conse-
                                             quently, in such cases it is not            There are exceptions to the general rule for
                                             allowed to claim per diem allow-            claiming additional expenses for food and
                                ances. However, the costs associated with                drink. For instance, where you stayed with-
                                business travel always constitute business               out interruption for more than 5 days, or
                                expenses if the business purpose can be sub-             more than 15 times a year, in the same
                                stantiated. As already mentioned above, the              place. In such cases no allowances are
                                costs of a business trip (e.g. car expenses,             deductible! You find details in the wage tax
                                mileage allowance, tickets, taxi fares) are              guidelines 2002, paragraphs 297 et seq, at
                                always deductible even in the absence of a               w w w. b m f . g v. a t / s t e u e r n / r i c h t l i n i e n
60                              journey.                                                 (taxes/guidelines).
Foreign travel                                  Note:
Those who are abroad for business or pro-       You find detailed information on the
fessional purposes can deduct as per diem       subject of “Special expenses” on p. 30
and overnight allowances the maximum            and in the brochure “Austrian Taxbook”
amounts provided for employees of the           at www.bmf.gv.at under “Steuern”
public service. The details are contained in    (taxes) and “Publikationen” (publicati-
the Federal Gazette II No. 434/2001. This is    ons) in a download version.
a Regulation which became effective on
1 January 2002 and which lays down the
per diem and overnight allowances for for-
eign journeys by federal employees.

You find a current list of per diem and over-
night allowances applicable in the case of
foreign travel in the annex to the
“Lohnsteuerrichtlinien 2000” (wage tax
guidelines 2000) at www.bmf.gv.at/
steuern/richtlinien (taxes/guidelines).

As in the case of domestic travel it is also
possible to claim hotel expenses for the
overnight stay (including breakfast) instead
of the overnight allowance. In this case of
course you need a document.

Incidental expenses
A large number of incidental expenses may
be incurred during the business journey,
such as tips, telephone expenses, expenses
for public means of transport, insurance of
travel luggage, which are deductible for
tax purposes. The only requirement is that
the costs are substantiated by documenta-
tion.

Please note that you can deduct only prop-
erty insurance as a business expense.
Expenses for personal insurance such as
travel accident insurance, travel health
insurance are regarded as personal ex-
penses and can at best be claimed as special
expenses.




                                                                                          61
XII. BUSINESS RECEIPTS

                                Business receipts are the opposite of busi-
                                ness expenses and increase the profit thus
                                contributing to a higher tax base for in-
                                come tax and corporation tax.

                             Business receipts include all receipts in
                                          money or money’s worth which
                                          arise from the operation of the
      Business receipts include all       enterprise. Therefore, the term
     receipts in money or money’s         not only includes receipts from
       worth which arise from the         your business activities as such
       operation of the enterprise.       (the supplies you make) but
                                          also, for instance, receipts from
                                          supplementary supplies such as
                             sales of fixed assets, or from insurance
                             compensation, including gifts of small
                             value from business friends, customers or
                             patients (e.g. holiday travel, donations in
                             kind or in cash).

                                Business receipts may already occur during
                                the period in which the business is established.
                                The increases in value must arise from
                                the future operation of the business.
                                Examples are, for instance, the sale of
                                business assets before commencement of
                                the entrepreneurial (“advertising”) activities
                                as such.




62
XIII. LUMP SUM TAXATION

When you claim your deduction of business            expenses, a scheme which may be claimed by
expenses and input tax you are required by           liberal professions (within the meaning of
the tax office to present precisely determined       Sec. 22 ITA) and traders (within the meaning
amounts. Therefore, one of your most impor-          of Sec. 23 ITA). This lump sum
tant duties is to collect accurate documents         taxation scheme is also called
and enter them in the accounts. If you always        “lump sum deduction in the                      This guide aims to give you a
perform this duty conscientiously, it is impos-      area of income tax”.                    survey of the very many lump sum
sible to forget a tax-deductible amount and                                                           taxation schemes, regardless
perhaps you can also prevent the tax office          In addition, Sec. 17 (4) and (5)                of whether you are a member
from disallowing a business expense.                 contains the statutory power for                  of the liberal professions or
                                                     the Federal Minister of Finance                               carry on a trade.
In this connection we offer you another pos-         to lay down by ordinance aver-
sibility which may very well make things             age rates for categories of tax-
easier for you. You may also determine your          payers. On the basis of this power the
business expenses and your deduction of              Minister of Finance laid down by ordinance
input tax by way of lump sum taxation. In            percentage rates for various industries which
addition to a lump sum deduction of busi-            are to be applied to supplies exclusive of VAT
ness expenses or partial lump sum taxation           for the purpose of computing business expenses
it is also possible to determine net profits by      (“lump sum taxation for certain industries
way of full lump sum taxation (lump sum              in the area of income tax”, see p. 66).
taxation of profits).                                Moreover, there are special lump sum taxa-
                                                     tion schemes for certain industries, cf. p. 70.
Full lump sum taxation is available for agri-
cultural and forestry enterprises! Lump sum          However, provided that the relevant condi-
taxation of profits is also available to the         tions are met, you have the option to deter-
industries “public houses, restaurants and           mine your profits either under the general
board and lodging enterprises” and “retailers        provisions relating to the lump sum deduction
of food products and grocers”, which consists        scheme (Sec. 17 ITA) or under the special
of a basic amount and a percentage of re-            rules relating to the lump sum taxation
ceipts. These industries must, therefore, record     schemes for certain industries.
their receipts in the same way as a business
that applies a lump sum deduction of expenses.       Lump sum deduction in the area
                                                     of income tax

A. Lump sum deduction                                In the case of income derived from a liberal
of business expenses                                 profession or a trade you may determine
                                                     business expenses within the frame of cash
Where business expenses are deducted on a            accounting, either at a rate of 6 % of receipts
lump sum basis, it is possible to compute            exclusive of VAT, the maximum amount,
business expenses on the basis of a certain          however, being EUR 13,200, or at a rate of
percentage of net receipts (“partial lump sum        12 % of such receipts, the maximum amount,
taxation”). Therefore, lump sum taxation does        however, being EUR 26,400.
not waive the entrepreneur’s obligation to
record his supplies. Sec. 17 (1) to (3) of the In-   For details see “Check-list concerning lump sum
come Tax Act contains general provisions re-         deduction in the area of income tax”, p. 66.
lating to lump sum deduction of business                                                                                               63
XIII. LUMP SUM TAXATION

                                 Requirements for the lump sum taxation        Lump sum deduction
                                 schemes:                                      for business expenses
                                                                               In principle, the flat rates of 6 % and 12 %
                                             • no double-entry                 cover all business expenses, in particular
     When you start a business there           book-keeping;                   expenses relating to:
     are no supplies in the preceding
      year. Nevertheless it is possible      • your supplies in the            • depreciation (normal tax depreciation,
          to apply lump sum taxation           preceding accounting year         special types of depreciation, low-cost
      if the turnover threshold in not         do not exceed EUR 220,000.        assets);
            exceeded in the first year.                                        • residual values of fixed assets retired
                                                                                 from service;
                                                                               • expenses for borrowed funds;
                                 Binding force in the case of change           • rent and lease;
                                 in method of accounting                       • mail and telephone;
                                 If you once have claimed the lump sum         • consumable materials
                                 deduction scheme and you subsequently           (combustibles and fuels);
                                 waive this scheme (determination of           • energy and water;
                                 profits by way of “normal” cash account-      • advertising;
                                 ing), it is not allowed to apply the scheme   • legal expenses and consulting fees;
                                 of lump sum deduction of business ex-         • commission fees;
                                 penses until the lapse of five accounting     • office expenses;
                                 years.                                        • insurance premiums;
                                                                               • business taxes;
                                  Example:                                     • maintenance and repair;
                                  An entrepreneur computes his business        • cleaning by third parties;
                                  expenses in the years 2002 and 2003 by       • expenses for motor vehicles;
                                  way of a lump sum deduction. This is         • travel expenses (including per diem
                                  more favourable for him because such           and overnight allowances); and
                                  expenses would be considerably lower if      • tips
                                  substantiated by documents. Since the
                                  taxpayer would like to know the actual       Additional business expenses
                                  amount of expenses he continues to           In addition to the lump sum deduction of
                                  collect his expense-related documents,       business expenses on the basis of 6 % or
                                  even though this is not necessary for        12 % of receipts exclusive of VAT, it is possible
                                  purposes of lump sum taxation. Thus in       to deduct the following (already paid)
                                  2004 he finds out that the total amount      expenses to the extent they have actually
                                  of expenses is much higher than the flat     been paid:
                                  rate he may claim. Therefore he deter-
                                  mines the profit of the year 2004 by way     • expenses for wages and incidental
                                  of “normal” cash accounting. The conse-        employment costs;
                                  quence of this is that a lump sum            • expenses for goods, semi-finished
                                  deduction cannot be applied until the          products, raw materials and
                                  year 2010. It would be a disadvantage          consumable materials;
                                  for the entrepreneur if in the meantime      • remuneration for third-party services;
                                  lump sum taxation turned out to be           • social security contributions.
64                                more favourable.
 Please note:                                   following year, cannot be taken into account
 Voluntary expenses for social purposes         already in 2003 but only in 2004. It is only
 (e.g. providing meals at reduced prices),      possible to deduct costs which must be or
 however, do not constitute additional          should be entered (assuming that the in-
 expenses.                                      come results from a trade) in a
                                                purchase book. This applies to all
                                                goods, etc. which are acquired              Expenses for goods, etc. which are
Wages and incidental employment                 by the entrepreneur for resale,           used for services (including, among
costs as an additional bonus                    regardless of whether the goods             other things, valuable goods such
Expenses for wages are all regular and sup-     are resold in the same condition                as gold for teeth) may not be
plemental wages (holiday pay and Christmas      or are worked upon or processed              deducted as additional expenses,
remuneration) paid out to workers and           before resale. For the liberal pro-           neither by traders nor by liberal
employees including the wage tax paid on        fessions the bonus deduction                                       professions.
such wages.                                     applies only to goods, etc. which
                                                are resold on a commercial basis,
Incidental employment costs include:            even though such resale if effected within
                                                the frame of a liberal profession, for instance
• employer’s social security contribution;      medicine maintained by a physician in his
                                                own practice.
• employer’s contribution to the Family
  Burdens Equalisation Fund;                    Remuneration for third-party services
                                                as an additional bonus
• municipal tax;                                Remuneration paid for third-party services
                                                may be claimed as business expenses in so far
• underground railway levy in Vienna;           as such remuneration is directly connected
                                                with supplies which are the object of the enter-
• contribution to the workers’ council;         prise. Such expenses include, in particular,
  and                                           expenses resulting from hiring-out of labour
                                                and work contracts. In the case of production
• contributions to pension funds.               of goods, remuneration paid for third-party
                                                services is included in the supplies only if
Taxable benefits in kind are included in the    an entrepreneur who keeps books would be
wages and, therefore, constitute expenses       obliged (under commercial law) to include
for wages from the perspective of the           such expenses in the acquisition or produc-
employer. Equally, it is possible to claim an   tion costs of current assets. In the case of
additional deduction for remuneration paid      supplies of services, remuneration paid for
to employees as a result of a duty trip, such   third-party services is deductible only if such
as mileage allowances, per diem and over-       services are of the same type as the services
night allowances.                               rendered to the customer.

Goods as an additional bonus                     Examples:
The requirement is that the expenses for         Expenses for repairs on shoes effected by
goods, semi-finished products, raw materials     third parties at a shoe repair workshop;
and consumable materials have already been       substitution costs in the case of lawyers,
paid. Therefore, an invoice issued by a sup-     special category patient fees paid to sub-
plier in the year 2003, which is paid in the     ordinated physicians.                                                       65
XIII. LUMP SUM TAXATION

                    Check-list concerning “lump sum deduction in the area of income tax”
              Determination of business expenses in the case of liberal professions and traders
                  6 % of VAT-exclusive receipts                     12 % of VAT-exclusive receipts
                 maximum amount: EUR 13,200                        maximum amount: EUR 26,400
          • commercial or technical consultancy;            all other activities under
          • property management;                            Sec. 22 and Sec. 23 ITA 1988
          • members of a supervisory board;
          • shareholder/employee
            (participation > 25 %);
          • lecturers;
          • scientists and writers
            (writers may also claim lump sum tax-
            ation for certain industries, cf. p. 70);
          • teaching and educational activities.
                   In addition, the following expenses are deductible as business expenses:
          • expenses for the purchase of goods, raw materials, semi-finished goods and consumable
            materials which must or should be entered in a purchase book (Sec. 128 FTPA) because
            of their nature and their business purpose;
          • expenses for wages (including incidental employment costs);
          • remuneration paid for third-party services in so far as such remuneration is directly
            connected with supplies which are the object of the enterprise;
          • social security contributions within the meaning of Sec. 4 (4) (1) ITA (i.e. contributions
            to compulsory insurance).
                                      Computation of taxable profits:
          VAT-exclusive receipts, including supplementary supplies (e.g. sales of fixed assets)
          - VAT-exclusive expenses for goods, semi-finished goods, raw materials and consumable materials
          - wage costs, including incidental employment costs and change in provision for
          - severance payments
          - VAT-exclusive expenses for third-party services
          - social security contributions
          - 6 % or 12 % of VAT-exclusive receipts
          taxable profits




         Lump sum taxation for                              – from bakers to weavers – a total number
         certain industries in the area                     of 54 trades (including related trades)
         of income tax                                      together with the relevant flat rates. The
                                                            provisions relating to lump sum taxation for
         A special ordinance by the Federal Ministry        certain industries in some parts deviate
         of Finance dated 14 December 1989                  considerably from the provisions relating to
         (Federal Gazette No. 55/1990) provides for         the normal lump sum deduction scheme as
         percentage rates for specific industries as        regards the flat rates to be applied.
         regards the computation of business ex-            Moreover, the list of business expenses,
         penses by traders who do not keep books.           which may be additionally deducted, is sub-
66       This ordinance contains in alphabetical order      stantially extended:
Flat rates for traders                         B. Lump sum deduction
who do no keep books                           of input tax
In the ordinance (Federal Gazette No.
55/1990) you can look up the percentage        In addition to a lump sum deduction of
rates for the trades specified therein which   business expenses it is also possible for you
are applied to supplies exclusive of VAT       to use the flat rate scheme for deduction of
for the purpose of calculating business ex-    input tax or to waive the flat rates for in-
penses.                                        come tax purposes and use only the flat-
                                               rate scheme for value added tax purposes.
In addition to the flat rates the following
items are to be taken into account as busi-    Both schemes are independent of each
ness expenses:                                 other and it is allowed to choose either the
                                               one or the other scheme. However, lump
• purchase of goods, raw materials, con-       sum taxation in the area of value added tax
  sumable materials and semi-finished          only refers to the determination of deduct-
  products (according to purchase book);       ible input tax. However, when calculating
                                               output tax for supplies of goods, supplies
• expenses for wages (according to wage        of services and self-supplies the tax due
  account), employer’s statutory social        must be calculated on the basis of actual
  security contribution, contribution for      amounts.
  the promotion of residential building,
  employer’s contribution to the Family        In conformity with the lump sum deduction
  Burdens Equalisation Fund;                   regime for income tax purposes there is
                                               also a lump sum deduction regime for
• all types of depreciation (normal tax        value added tax purposes (cf. p. 68).
  depreciation and special types of tax
  depreciation, low-cost assets);              Additionally, Sec. 14 (1) (2) VATA contains a
                                               special statutory power for lump sum
• tax free amounts concerning roll-over        deductions of input VAT in the area of value
  of capital gains;                            added tax. Even though the relevant
                                               ordinance was issued on 14 December 1983
• provision for rights to severance            (Federal Gazette No. 627/1983) under the
  payments;                                    1972 VATA, its application is still manda-
                                               tory and it contains a list of percentages for
• expenses for rent and lease, energy,         the determination of deductible amounts of
  heating, mail and telephone;                 input tax in the case of certain categories
                                               of enterprises (“lump sum taxation for
• value added tax paid (except VAT on          certain industries in the area of value
  self-supplies) and value added tax           added tax”).
  (input tax) in respect of capital
  expenditures;                                Moreover, there exist other regimes con-
                                               cerning the lump sum deduction of input
• compulsory insurance contributions           VAT for special industries (cf. p. 70).
  (statutory health, accident and pension
  insurance).
                                                                                                67
XIII. LUMP SUM TAXATION

                                  Lump sum deduction                                   • input taxes relating to remuneration for
                                  in the area of value added tax                         third-party services in so far as such
                                                                                         remuneration is directly connected with
                                                It is required that the supplies in      supplies which are the object of the
  When you establish a new business             the preceding accounting period          enterprise. For details see chapter on
  it is possible to apply the lump sum          do not exceed EUR 220,000                “Remuneration for third-party services
   deduction of input VAT if it is likely       (Sec. 14 (1) (1) VATA). You may          as an additional bonus”, p. 65.
 that the turnover thresholds concer-           opt for this lump sum taxation
   ning the optional lump sum taxati-           regime even if you are obliged to      Lump sum taxation for certain
        on regime will not be exceeded.         keep books.                            industries in the area of value
                                                                                       added tax
                                                The lump sum deduction of
                                  input tax is generally calculated at a rate of       In lieu of the lump sum deduction scheme you
                                  1.8 % of total supplies (except tax-exempt           may also apply the lump sum taxation scheme
                                  supplies and supplementary supplies such as          for certain industries. In the relevant ordinance
                                  the sale of fixed assets), however, the maxi-        (Federal Gazette No. 627/1983 as amended by
                                  mum deductible amount being EUR 3,960.               Federal Gazette II No. 6/1997) you find the
                                  The lump sum deduction of input tax at a rate        percentage which has to be applied to the
                                  of 1.8 % is possible for each individual business.   supply made for the purpose of calculating
                                                                                       deductible input tax. These legal provisions are
                                    Example:                                           very complex and, therefore, this guide con-
                                    A trader has a turnover of EUR 205,000 of          tains only a broad outline of these provisions.
                                    which EUR 5,000 is attributable to the sale        The ordinance differentiates between:
                                    of a small lorry. The entrepreneur may
                                    deduct a lump sum amount of EUR 3,600              • liberal professions (four categories, com-
                                    as input tax (1.8 % of EUR 200,000).                 prising veterinarians, lawyers, patent
                                                                                         lawyers, and notaries, chartered accoun-
                                  Just as in the case of lump sum deduction of           tants, as well as civil engineers); and
                                  business expenses it is additionally possible to
                                  deduct certain amounts of input tax (import          • commercial enterprises and traders that are
                                  VAT, if any) on the basis of actual amounts.           not obliged to keep books (67 categories).

                                  • input taxes or import VAT for supplies of          Rules for the liberal professions
                                    goods and services (acquisition and pro-           The list of liberal professions is a long one,
                                    duction) concerning depreciable fixed              but still manageable. The following percent-
                                    assets (e.g. floor heating, office furniture,      ages, which are applied to turnover, are al-
                                    computer) if the acquisition or production         lowed as deduction of input tax: 4.9 % for
                                    costs exceed the amount of EUR 1,100               veterinarians, 1.7 % for lawyers, patent
                                    exclusive of VAT.                                  lawyers, notaries and chartered accountants,
                                                                                       and 2.8 % for civil engineers.
                                  • input taxes or import VAT relating to
                                    goods purchased, semi-finished products,           A lump sum deduction of input tax is not pos-
                                    raw materials and consumable materials.            sible for doctors of human medicine. Their
                                    In these cases the statements in the               supplies are “exempt” from value added tax,
                                    chapter on “Goods as an additional                 which means that they are not entitled to
68                                  bonus”, p. 65, apply accordingly.                  deduct input tax.
 Please note:                                       duction) relating to depreciable fixed
 The requirement is that the supplies made          assets for which immediate and full
 by liberal professions do not exceed EUR           depreciation is not allowed for income
 255,000 in the preceding calendar year.            tax purposes;
 However, in the case of the normal lump
 sum deduction scheme in the area of             • input taxes for third-party
 value added tax, the turnover threshold of        services in so far as such                      According to the ordiance
 EUR 220,000 applies!                              services are directly                      the two last mentioned points
                                                   connected with supplies by                   do not apply to hairdressers,
Input taxes and import VAT for supplies of         the trader;                                        dry cleaners, laundries,
depreciable fixed assets must be claimed                                                             and commercial agents.
additionally, provided that the acquisition      • input taxes or import VAT
costs are not immediately deductible as            for supplies of goods, in-
business expenses. This means that deduc-          cluding raw materials, consumable
tion of input tax is not possible for low-cost     materials and semi-finished products
assets (costs up to EUR 400 exclusive of           acquired by the entrepreneur for
VAT).                                              commercial resale.

It is not allowed to separately deduct input     Binding force and duration
taxes relating to supplies of services (pro-     of the binding force
duction) in connection with depreciable
fixed assets! However, chartered accoun-         If you want to know if a lump sum deduction
tants may additionally deduct the value          of input tax is profitable to you, compare the
added tax invoiced by computer centres for       VAT liabilities – for a specific assessment
supplies in the area of data processing.         year – by applying the lump
                                                 sum taxation scheme and the            The binding force and the duration
Rules for commercial enterprises                 normal scheme. If the VAT lia-           of the binding force in respect of
and traders                                      bility should turn out to be             input tax apply to both the lump
It is necessary for commercial enterprises       lower, you can declare in writ-       sum deduction of input tax and the
and traders to consult the relevant ordi-        ing to your tax office that you              lump sum taxation scheme for
nance (Federal Gazette No. 627/1983). The        wish to determine input tax by                          certain industries.
flat rates range from 0.3 % (tobacconists) to    applying the flat-rate scheme
7 % (coin laundries).                            until the VAT notice of assess-
                                                 ment has become final, either by way of the
Although there is no turnover threshold for      standard lump sum deduction of input tax or
commercial enterprises and traders, lump         by way of the lump sum taxation scheme for
sum taxation is only allowed for businesses      certain industries. No matter which of the
which are not obliged by law to keep books.      two methods you choose, your declaration
The entrepreneur is entitled to lump sum         has a binding effect for a minimum period of
deduction of input tax even if he keeps          two calendar years (Sec. 14 (4) VATA).
books on a voluntary basis. Also in such
cases there exist additional possibilities of    Your decision may be revoked after expiration
deducting input tax:                             of the period of the binding force only with
                                                 effect from the beginning of a calendar year.
• input taxes or import VAT for supplies of      You must declare to the tax authority in writ-
  goods and services (acquisition and pro-       ing that you have taken such decision, the                                    69
XIII. LUMP SUM TAXATION

         dead line being the date on which the notice         The requirement for the application of the
         of assessment in respect of the relevant calen-      lump sum taxation schemes is that there is
         dar year becomes final. Thus it is possible to       no obligation to keep books and no books are
         effect a “profitability calculation” afterwards      kept on a voluntary basis. However, sole pro-
         in order to decide whether to waive the lump         prietors who keep books may also claim the
         sum taxation scheme. By means of a waiver            lump sum taxation scheme for commercial
         the entrepreneur may declare that from now           agents.
         on he wishes to apply the lump sum taxation
         scheme for certain industries instead of the         In case you wish to apply one of the lump
         standard lump sum deduction of input tax or          sum taxation schemes mentioned, the rele-
         viceversa. Such a declaration is again binding       vant ordinances and paragraphs of the in-
         on him for two years.                                come tax and value added tax guidelines
                                                              contain further information.
         However, the taxpayer may also opt for the
         application of the normal value added                 Note:
         tax scheme for the purpose of determining             You find the income tax and value added
         amounts of input tax. This option has a               tax guidelines on the Internet at
         binding effect of 5 years. The entrepreneur           www.bmf.gv.at/steuern/richtlinien.
         may return to the lump sum taxation scheme
         only after this period (Sec. 14 (5) VATA).           Value added tax within the frame
                                                              of lump sum taxation for income
                                                              tax purposes
         C. Special lump sum taxa-
         tion for certain industries                          In principle it is possible to opt for the net
                                                              method, i.e. amounts exclusive of VAT, or the
         Ordinances by the Minister of Finance intro-         gross method, i.e. amounts inclusive of VAT
         duced additional options to apply lump sum           (cf. “Cash accounting”, p. 26). Under the net
         taxation schemes in the areas of income tax          method value added tax is treated as a tran-
         and value added tax for the following special        sitory item (Sec. 4 (3) third sentence, ITA).
         industries:                                          VAT is neither a receipt nor an expense, that
                                                              is to say all receipts and expenses are re-
         • public houses, restaurants and board               corded as VAT-exclusive amounts.
           and lodging enterprises;
                                                              The net method is only allowed for taxpayers
         • retailers of food products or grocers;             for whom value added tax, in principle, may
                                                              constitute a transitory item, i.e. for entrepre-
         • druggists;                                         neurs who do not carry out exempt supplies
                                                              within the meaning of the VATA (cf. “The tax
         • commercial agents;                                 exemptions”, p. 36).

         • artists and writers.                               Gross method in the case of lump sum
                                                              deduction of input tax
         Public houses, restaurants and board and lodg-       Generally only the gross method is allowed if
         ing enterprises as well as retailers of food prod-   you use the lump sum scheme for deduction
         ucts or grocers may determine their profits on       of input tax, except you apply the lump sum
70       a lump sum basis (full lump sum taxation).           deduction of input tax under Sec. 14 (1) (1)
VATA (“lump sum deduction in the area of
value added tax”) and the lump sum taxation
scheme under Sec. 17 (1) to (3) ITA (“lump
sum deduction in the area of income tax”) at
the same time. In this case it is also possible
to use the net method.

In conclusion, a short survey of all special
lump sum taxation schemes for certain in-
dustries:




 Business                            BGBl. Nr.   Paragraph Income      Lump sum taxation
                                     Gazette No. Tax Guidelines (ITG)  in respect of
                                                 VAT Guidelines (VATG)
 public houses, restaurants          II 227/1999   4287 – 4309 (ITG),     profit and partially
 and board and lodging                             2255 and 2266 –        input tax
 enterprises                                       2268 (VATG)
 retailers of food products          II 228/1999   4310 – 4323 (ITG),     profit and partially
 or grocers                                        2255 and 2269 (VATG)   input tax
 druggists                           II 229/1999   4324 – 4330 (ITG),     business expenses
                                                   2226 – 2242 and        and input tax
                                                   2270 (VATG)
 commercial agents                   II 95/2000    4355 – 4360 (ITG),     business expenses
                                                   2255 (VATG)            and input tax
 artists and writers                 II 417/2000   4361 – 4378 (ITG),     business expenses
                                                   2253, 2255 and         and input tax
                                                   2277 (VATG)




                                                                                                 71
XIV. LEGAL PROTECTION
AND RELIEFS
                                A. Appeals                                        in the respective month, the period ends
                                                                                  with the lapse of the last day of that
                                The tax offices issue notices as final deci-      month.
                                sions. If you are dissatisfied with an admin-
                                istrative decision you are entitled to lodge,      Example:
                                as a legal remedy, an appeal against notices       A notice of assessment is delivered on
                                issued by the tax authorities of first             28 February. The period for lodging an
                                instance, i.e. the tax offices (Sec. 243 FTPA).    appeal begins to run on this day and ends
                                If the appeal is satisfied, it is possible to      on 28 March. If, however, the notice of
                                eliminate the disadvantages which would            assessment is not delivered until 31 March,
                                have been the result of the notice.                the period runs only until 30 April.

                                New facts and circumstances and                   Saturdays, Sundays or holidays have no
                                amendment of assessments                          effect on the beginning and the running of
                                increasing taxpayer’s liability                   the period.

                                It is an essential advantage of the appeal        However, if the period expires on a Saturday,
                                procedure that you can produce new facts          Sunday, legal holiday, Good Friday or
                                and evidence and make new applications (no        24 December, the next day which is not a
                                prohibition to take into account new facts,       day mentioned above is regarded as the last
                                evidence and applications, Sec. 280 FTPA). In     day of the period.
                                this way you may induce to correct errors
                                which are due to a fault on your part (e.g. you    Example:
                                subsequently claim tax-deductible items you        The period for lodging an appeal would
                                have forgotten). However, the appeal author-       end on 9 April 2004 (Good Friday). In fact
                                ity may amend the contested notice in all          the period ends on Tuesday after Easter,
                                respects in the course of the appeal procedure.    i.e. on 13 April 2004.
                                Thus a new notice may be issued to your
                                disadvantage (increasing your tax liability).     Since it is essential to observe the period for
                                                                                  lodging an appeal you should post your
                                             Time limit for lodging               appeal as a registered letter, or file it person-
      An appeal which is lodged out          an appeal                            ally with your tax office while at the same
     of time will be rejected because                                             time trying to get the entry stamp on an
              the period has expired         The period within which you          identical copy. An appeal is deemed to have
                   (Sec. 273 (1) FTPA).      may lodge an appeal is one           been filed just in time if it is handed over to
                                             month from the date on which         the post office no later than on the last day
                                             the contested notice was served      of the period (the date of the ink-stamp of
                                (Sec. 245 (1) FTPA). On request this              the post office is of relevance!).
                                period may be extended. The period for
                                lodging an appeal begins to run on the day        Formal requirements
                                the notice of assessment is served and ends
                                with the lapse of the day in the following        When preparing your appeal (appeals must
                                month which corresponds to the day (by            be lodged in writing!) you must observe cer-
                                reference to its number) which is of rele-        tain formal requirements and requirements
                                vance for the beginning of the period.            with regard to its contents (Section 250
72                              Where there is no such corresponding day          FTPA).
The appeal must contain the following:          (Sec. 212a FTPA). Unless the appeal is satis-
                                                fied, interest is payable on the suspension of
• the statement of the notice of                collection at the base rate plus 1 % pa.
  assessment which is contested,
• a declaration concerning those parts
  of the notice of assessment which             B. Extension of time
  are contested,                                for payment
• a declaration concerning the
  requested amendments,                         If taxes are not paid on the due date, the tax
• the grounds,                                  authorities may proceed to enforcement
• the signature.                                action, which means that an enforcement
                                                officer may be instructed to carry out execu-
 Example:                                       tion. In order to avoid this you should imme-
 I lodge within the prescribed period an        diately make use of the extension of time for
 appeal against the notice of assessment of     payment granted by your tax office on
 income for 2002, dated 4 May 2003 and          request, provided certain requirements are
 served on 7 May 2003, and state the fol-       met. The question of whether such relief is
 lowing grounds: The notice is incorrect as     granted is, in principle, at the discretion of
 regards the special expenses shown on the      the tax authorities. However, where not even
 notice since it escaped my attention, when     the statutory requirements are met, the
 filling in my income tax return, to claim as   application made by a tax debtor must be
 special expenses according to Sec. 18 (1)      dismissed for legal reasons.
 (1) ITA the life annuity payments to my
 father amounting to EUR 6,000. I there-        Principle of application
 fore request that this amount is taken into
 account when calculating the income.           On request the tax authority may grant
                                                extension of time for payment of taxes for
                                                which enforcement action may be taken
 Note:                                          against the taxpayer by an enforcement offi-
 You find another specimen of an appeal in      cer if
 the brochure “Austrian Taxbook” at
 www.bmf.gv.at under “Steuern” (taxes)          • the prompt payment of tax would result
 and “Publikationen” (publications).              in particular hardship for the debtor, and

Payment of tax or application for               • the collection of tax is not jeopardized
suspension of collection                          by the concession of the tax authorities
                                                  (Sec. 212 (1) FTPA).
Lodging an appeal does not affect the effec-
tiveness of the contested notice of assess-     The taxpayer must state the reasons in his
ment, in particular as regards payment and      request why on the one hand the prompt
recovery of tax. It is therefore first of all   collection of tax would result in particular
necessary to pay the amount of tax due. It      hardship or must state arguments why the
should be pointed out explicitly that at your   collection of tax is not jeopardized. The dead
request you are entitled to a suspension of     line for the request is the date on which the
collection, i.e. a postponement of tax pay-     tax is due (the ink-stamp of the post office
ment, if the legal requirements are fulfilled   is of relevance).                                73
XIV. LEGAL PROTECTION
AND RELIEFS
                                       Payment in instalments                           scribed period, there is no obligation to pay
                                       or with grace period                             a late payment penalty. Until a decision is
                                                                                        taken on the request no enforcement action
                                       The applicant may choose between:                is allowed as regards taxes covered by the
                                                                                        request. As long as enforcement is barred on
                                       • a deferral of payment of tax debts             the basis of a request that is still undecided,
                                         (i.e. extension of time for payment            or as long as the time for payment is ex-
                                         of a specific amount of tax by a               tended because such extension has been
                                         specific date), or                             granted, interest is payable on extension of
                                                                                        time for payment. Interest on extension of
                                       • payments in instalments.                       time for payment is imposed at the current
                                                                                        base rate plus 4 % pa.
                                   For this purpose the taxpayer proposes in his
                                   application an appropriate payment scheme            For the sake of completeness it should be
                                   for payment by instalments. A deferred pay-          mentioned that interest on extension of time
                                   ment is possible either by reference to tax          for payment of tax is only payable on tax
                                   arrears or by reference to individual types of       debts which exceed an amount of EUR 750.
                                   tax. In its decision on a request for payment        Interest on extension of time for payment of
                                   by instalments the tax office takes into             tax which does not reach the amount of EUR
                                   account the total arrears shown on the tax           50 is not to be assessed (Sec. 212 (2) FTPA).
                                   account. It is also allowed to include tax debts
                                   which become due during the period for
                                   which the extension of time for payment is           C. Release from payment
                                   granted, i.e. in particular prepayments of           of tax
                                                 income tax and corporation tax
                                                 (Sec. 212 (1) FTPA). Thus all taxes    At the request of the taxpayer due tax debts
       For reasons of practicability the         which become due during the            may be abated if their collection is unfair
     payment of tax debts by monthly             extension period are covered.          (Sec. 236 FTPA).
         instalments is usually allowed
      by the tax office for a maximum            If any additional amounts are
                    period of one year.          credited during the period for
                                                 which payment of tax in instal-
                                                 ments has been granted, e.g. if
                                   input tax credits are claimed, then such
                                   amounts are usually not credited against the
                                   instalments payable. However, the amounts
                                   credited shorten the period during which
                                   instalments are payable. The instalments
                                   fixed by the tax office must be paid to the
                                   full extent until the tax arrears have dis-
                                   appeared.

                                       Interest on extension of time
                                       for payment of tax
                                       If the request for extension of time for pay-
74                                     ment arrives at the tax office within the pre-
XV. FORMS

No matter whether these are special forms             fill-in version
for new enterprises and transfers of busi-            download version for
nesses or forms for income tax, corporation           filling in: the forms can                   The necessary software
tax, wage tax, value added tax, etc. they are         be downloaded to your            (Adobe Acrobat Reader) is available
available to you at www.bmf.gv.at under               computer and filled in                      to you for downloading
“Formulare” (forms), in most cases in four            and printed out via the                              free of charge.
versions (cf. “Homepage of the Ministry of            Adobe Acrobat Reader
Finance”, p. 10):                                     (PDF), but cannot be
                                                      stored.
    via FINANZOnline you may transmit
    your electronic tax return.                       storage version                  You find tips for filling in the forms
                                                      download version for              you need when you establish your
    print version                                     filling in and storing.              new business in the chapter on
    download version for printing out:                                                           “The questionnaire”, p. 13.
    the forms can be downloaded to your
    computer and printed out via the
    Adobe Acrobat Reader (PDF).




As regards the                 Procedural law in connection with new enterprises
establishment or       Verf 15 Questionnaire for companies (stock corporations,
transfer of your                limited liability companies)
business the fol-      Verf 16 Questionnaire for partnerships (limited partnerships,
lowing forms con-               general partnerships, civil law partnerships, small limited
cerning procedur-               partnerships, small general partnerships, co-ownerships,
al law and the                  atypical sleeping partnerships)
Act on the Pro-        Verf 24 Questionnaire for individuals
motion of New          Verf 26 Signature card
Businesses are of             Additional forms in connection with procedural law
relevance:             Verf 14 Questionnaire according to Sec. 143 FTPA
                                (request for information)
                       Verf 17 Questionnaire for non-residents
                       Verf 25 Questionnaire on the occasion of cessation of a trade
                                or professional activity
                       Verf 34a Tax clearance certificate
                                           Promotion of new businesses
                       NeuFö 1 Declaration of new business (Sec. 4 NEUFÖG)
                       NeuFö 3 Declaration of transfer of business (or separate division
                                of business) (Sec. 5a in connection with Sec. 4 NEUFÖG)




                                                                                                                                75
XV. FORMS

                                  The following survey shows you
                                  the most important tax forms:

                                                                        Income tax
                                   E1      Income tax
                                   E 1a    Attachment to income tax return E 1 for sole proprietors
                                           (business income)
                                   E 1b    Attachment to income tax return E 1 for income from renting
                                           and leasing of land and buildings
                                   E 1c    Attachment to income tax return E 1 for sole proprietors deriving income
                                           from agriculture and forestry subject to lump sum taxation
                                   E2      Instructions for completing forms E 1 and E 1a
                                   E3      Application for refund of capital yields tax on interest
                                   E4      Application for multi-child increment
                                   E5      Refund of sole earner/single parent tax credit
                                   E6      Declaration of income derived by partnerships (co-ownerships)
                                   E7      Income tax return for non-residents
                                   E8      Instructions for completing form E 7
                                   E 16    Wage sheet for Germany (cross-border workers)
                                   E 17    Wage statement for Switzerland and Principality of Liechtenstein (cross-border workers)
                                   E 18    Notification according to Sec. 109a ITA 1988
                                   E 25    Attachment to E 1 (agricultural and forestry enterprises not keeping books)
                                   E 30    Declaration for claiming sole earner/single parent tax credit
                                           Komb 9        Lump sum taxation concerning artists/writers
                                           Komb 10       Lump sum taxation concerning commercial agents
                                           Komb 11E Lump sum taxation concerning public houses,
             The forms termed “Komb”                     restaurants and board and lodging enterprises
     can be used as a calculation help     Komb 12E Lump sum taxation concerning retailers of food products
     when claiming lump sum taxation                     or grocers
            in the areas of income tax     Komb 24E Attachment to E 1 and E 25 for wine-growers not keeping books
                  and value added tax.     Komb 25       Attachment to E 1 and E 25 for horticultural and nursery
              Do not attach the forms                    businesses not keeping books
              to the return. For details   Komb 26       Attachment to E 1 and E 25 (sale of homegrown must for
            see chapter on “Lump sum                     consumption on the premises, income from ancillary activities,
                       taxation”, p. 63.                 processing within the frame of agriculture and forestry)

                                                                       Wage tax
                                   L1      Application for employee assessment
                                   L 16    Wage sheet
                                   L 34    Declaration for claiming lump sum deduction for commuters
                                   L 38    Inquiry/confirmation of loss of earnings by the district police station/
                                           chief local government office
                                   L 73    Confirmation of amounts paid for the construction of an
                                           owner-occupied apartment
                                   L 75    Statement of special expenses
76
                                     Value added tax
U1         Value added tax return
U 1a       Instructions for completing form U 1
U5         Application for refund of value added tax for non-resident entrepreneurs
U 5a       Instructions for completing form U 5
U 10       Declaration of the acquisition of new means of transport (occasional taxation scheme for vehicles)
U 12       Declaration according to Sec. 6 (3) VATA
           (waiver of tax exemption for small entrepreneurs)
U 13       Recapitulative statement of intra-Community supply of goods
U 15       Application for assigning a VAT identification number
U 16       Verification of a VAT identification number
U 17       Notification of intra-Community supply of new vehicles
           to purchasers without VAT identification number
U 17a      Continuation sheet for form U 17 (for entrepreneurs)                                             The forms with the symbol
U 30       Preliminary VAT return                                                                                   refer to the option for
U 31       Attachment to preliminary VAT return                                                                    electronic transmission
U 70       Evidence of registration as an entrepreneur                                                                   via FINANZOnline.
U 71       Certificate of the existence of a fixed establishment
Komb 9     Lump sum taxation concerning artists/writers
Komb 10    Lump sum taxation concerning commercial agents
Komb 11U   Lump sum taxation concerning public houses, restaurants and board and lodging enterprises
Komb 12U   Lump sum taxation concerning retailers of food products or grocers
                                      Corporation tax
K1         Corporation tax return where there is an obligation to keep books
K2         Corporation tax return where there is no obligation to keep books
K3         Corporation tax return for non-residents
                             Stamp duties and transfer taxes
Geb 1      Declaration of self-assessment of stamp duties
Geb 4      Return concerning self-assessment of bill of exchange fees
Gre 1      Tax return according to Sec. 10 of the Real Estate Transfer Tax Act
Gre 3      Instructions for completing form Gre 1
                                  Tax on motor vehicles
Kr 1       Tax Return concerning motor vehicles
Kr 2       Instructions for completing form Kr 1
Kr 21      Tax on motor vehicles and engine-related insurance tax
           (tax return for handicapped persons)
                                         Other areas
EGA 1      Declaration concerning the natural gas levy
EGA 3      Application for refund of natural gas levies
ELA 1      Declaration concerning the electricity levy
ENAV 1     Application for refund of energy levies
Ka 1       Capital yields tax return
KOH 3      Application for refund of coal levy
NOVA 1     Return/application for refund for entrepreneurs
NOVA 2     Declaration of the acquisition of new means of transport (occasional taxation scheme for vehicles)
WA 1       Declaration concerning the advertising levy                                                                                      77
XV. FORMS

        The information contained on forms Verf 24,         total amount of supplies (current receipts plus
        U 1 and E 1, E 1a and E 1b refers to the cash       sales of fixed assets) is EUR 40,000 from his
        accounting for the year 2003, p. 27:                trade and EUR 5,000 from the renting of the
                                                            condominium apartment = EUR 45,000 (box
        Verf 24                                             000). The supplies connected with his trade are
                                                            subject to the tax rate of 20 % (box 022) and
        Mr. DRILLICH, resident in Vienna, Wohn-             the supplies connected with renting are taxed
        straße 45, born on 11 November 1955, started        at the rate of 10 % (box 029). Additionally Mr.
        a trade (special shop for work clothing) on         DRILLICH purchases goods from an entrepre-
        1 January 2003 in 1120 Vienna, Hand-                neur of a Member State of the EU, i.e. he ef-
        werksweg 21. So far the taxpayer has been           fects an intra-Community acquisition of goods.
        registered for tax purposes with his compe-         It is assumed that the depreciation deduction
        tent local tax office (i.e. the tax office where    of EUR 700 as indicated in the cash accounting
        he is resident) and was assigned the taxpay-        for the year 2003 results from the purchase of
        er identification number 765/4321 for pur-          a computer which has a value of EUR 2,800
        poses of employee assessment, because he            (full year’s depreciation).
        derived employment income which he will
        continue to derive, for the time being. The         Computation: depreciation period of 4 years
        information on turnover and profit in the           4 x 700 = EUR 2,800 (box 070).
        first year and subsequent year is based on
        estimates and is necessary to determine any         Since the taxpayer does not include value
        value added tax liability or to assess prepay-      added tax in the basis he indicates on page
        ments. Additionally, he states that he has a        3 the tax on acquisitions at the rate of 20 %
        tax representative. Moreover, from 1 March          which is applied to 2,800, i.e. EUR 560 (box
        2003 Mr. DRILLICH also derives income from          072). Since it is possible for him to deduct
        renting and leasing of a small condominium          input tax (see Verf 24), the amount of EUR
        apartment.                                          560 can immediately be deducted as input
                                                            tax resulting from the intra-Community
        U1                                                  acquisition of goods (box 065). Moreover, he
                                                            claims additional amounts of input tax to
        On page 1 information is provided on the enter-     the extent of EUR 700 (box 060) according
        prise as such. Page 2 shows that the taxpayer       to the following statement:
        uses the cash receipts basis of accounting. The



                     telephone and postage            EUR       500      x 20 % =           EUR     100
                     office rent                      EUR     1,450      x 20 % =           EUR     290
                     technical literature             EUR       300      x 10 % =           EUR      30
                     consulting expenses              EUR       750      x 20 % =           EUR     150
                     advertising                      EUR       400      x 20 % =           EUR      80
                     Sec. 13 ITA (low-cost assets)    EUR       250      x 20 % =           EUR      50
                     amount of input tax                                                    EUR     700



                            There are no amounts of input VAT in connection with the renting and leasing.
78                                                   This results in a VAT liability of EUR 7,800 (box 095).
E1                                               E 1a

On page 1 personal information is provided       In this case attachment E 1a must contain,
on Mr. DRILLICH and his spouse. The taxpay-      in addition to the standardised cash account-
er claims the sole earner tax credit because     ing statement, the following information:
his wife derives no income. Moreover, Mr.
DRILLICH provides information on his son         • industry code (see attachment E 2 or at
David from his first marriage, for whom he         www.statistik.at),
made maintenance payments under a legal
obligation (alimony) in 2003. This means         • cash accounting statement,
that he claims the alimony tax credit.
                                                 • VAT-exclusive amounts.
From January to August 2003 he derived
income from an employment relationship           Receipts exluding receipts from sales of
with the enterprise Bau GmbH. The income         fixed assets must be entered in box 9040,
from his trade amounting to EUR 31,000 and       while the latter must be entered in box
indicated on page 2 (point 3a and box 330        9060.
respectively) results from the cash account-
ing for the year 2003, p. 27. From the assess-    Note:
ment year 2003 a standardised cash accoun-        At www.bmf.gv.at under “FAQs“ (Steuern/
ting statement in attachment E 1a is suffi-       Steuerformulare-taxes/tax forms) you ob-
cient. It is therefore no longer necessary to     tain information on how to correctly
file a separate cash accounting statement,        assign your business expenses and receipts
nor is it necessay to file a separate surplus     to the individual boxes. Attachment E 2 pro-
calculation with regard to income from rent-      vides detailed instructions for completion.
ing and leasing. This income, i.e. minus EUR
820, is entered on page 5 (point 6a and box
370 respectively).                               E 1b

Mr. DRILLICH paid trade union dues of EUR        The standardised surplus calculation concern-
30 (box 279) and derived investment income       ing the renting of the condominium apart-
of EUR 600 (box 361) which is not subject to     ment must be entered in attachment E 1b.
tax withholding. Additionally he claims the
following special expenses: voluntary contri-
butions to annuity insurance (box 455)
amounting to EUR 2,100; expenses for living
space improvements (box 456) amounting to
EUR 3,700; and church contributions (box
458) amounting to EUR 75. Mr. DRILLICH
does not claim a personal allowance notifi-
cation.




                                                                                                 79
                                                                                                      Steuernummer
                                                                                                      NEU


                              An das Finanzamt

                               FA Wien 12/13/14 Purkersdorf

                               Ullmannstraße 54, 1153 Wien




                                                                                                      Datum




                              Frau/Herrn/Firma

                                                                                                      Bei Rückfragen wenden Sie sich bitte an




                            Betrifft:

                                  Eröffnung/Beginn                              Erweiterung              Verlegung                     Zutreffendes ist angekreuzt        !

                                        Ihrer selbständigen Tätigkeit           Ihres Gewerbebetriebes                  Ihres land- und forstwirtschaftlichen Betriebes
                                        Ihrer Vermietungs- bzw.
                                        Verpachtungstätigkeit

                            Sie werden ersucht, diesen Fragebogen ausgefüllt innerhalb eines Monats dem Finanzamt (Veranlagungsleitstelle) zurückzusenden.

                                  Sie werden weiters ersucht, Ihre Identität und den Wohnsitz dem Finanzamt nachzuweisen.
     http://www.bmf.gv.at




                                  Dazu können Sie innerhalb der gesetzten Frist während der Amtsstunden unter Mitnahme eines Ausweisdokumentes (Reisepass,
                                  Personalausweis, Führerschein) und des Meldezettels persönlich beim Finanzamt (Veranlagungsleitstelle) vorsprechen oder die
                                  Dokumente (auch in Kopie) diesem Fragenbogen beilegen.
                                  Die Identitätsprüfung kann auch durch den bevollmächtigten Parteienvertreter erfolgen.

                            Falls Sie einen bereits bestehenden Betrieb vom bisherigen Inhaber (durch Kauf, Tausch, Schenkung usw.) erworben oder gepachtet haben,
                            werden Sie gebeten, den entsprechenden Vertrag - aus dem die Höhe des Kaufpreises (Pachtzinses) sowie Name und Anschrift des bis-
                            herigen Inhabers (Übergebers) bzw. Verpächters ersichtlich sind - in Kopie anzuschließen oder vorzulegen.
                             Weiters wird um Vorlage folgender Unterlagen gebeten




                                                                                                     Unterschrift


                            Fragebogen für natürliche Personen (nicht zu verwenden für juristische Personen und Personengesellschaften)

                            Verf 24 Bundesministerium für Finanzen

80
                    FRAGEBOGEN                                                                                                                                 Zutreffendes bitte ankreuzen             !
                    Familien- und Vorname (akademischer Grad) bzw. Firmenname                                                                 Familienstand
                    DRILLICH Hans                                                                                                              verheiratet
                    Wohnanschrift/Sitz



                                                                                  Geburtsdatum                 Tagsüber erreichbar unter der Telefonnummer
                    Versicherungsnummer >                              9876 111155                              9876543
                    Ich bin/war bereits steuerlich erfasst beim Finanzamt                                                                                unter der Steuernummer
                        Nein         X Ja > 12/13/14/Purkersdorf                                                                                                765 / 4321
                    Neben den unten angeführten Einkünften beziehe ich Einkünfte aus                            in Höhe von (bitte voraussichtlichen Betrag des laufenden Jahres angeben)
                    X Arbeitsverhältnis/Pension       X                                                         Betrag in Euro 25.000
                                                                                                                                                                            Geburtsdatum
                          Ich bin Alleinverdiener bzw. Alleinerzieher: Der Alleinverdiener-/ Versicherungsnummer
                    X Alleinerzieherabsetzbetrag steht (voraussichtlich) zu                  des (Ehe)Partners                                                 5432 101060
                    Ort der Berufsausübung/Ort der Geschäftsleitung (weitere Betriebsstätten bitte auf einer Beilage anführen)
                    1120 Wien, Handwerksweg 21

                    Bei Vermietungs- bzw. Verpachtungstätigkeit: Anschrift des vermieteten bzw. verpachteten Objektes                              (weitere Objekte bitte auf einer Beilage anführen)
                    1130 Wien, Mietplatz 4/1

                    (Genaue) Bezeichnung der Tätigkeit/Art der Einkünfte (zB statt Handel mit Waren aller Art > Gemüsehandel)
                    Fachgeschäft für Arbeitsbekleidung
                    Beginn der Berufsausübung/Tätigkeit am                                                     Eintragung im Firmenbuch erfolgt?                             Firmenbuchnummer
                    01.01.2003                                                                                 X Nein              Ja                                   >
                    Wirtschaftsjahr für Gewinnermittlung/Umsatzsteuer                                          Anzahl der im Betrieb (voraussichtlich)                        Anzahl
                    von   01.01.                                      bis 31.12.                               beschäftigten Arbeitnehmer                               >      0
                    Der voraussichtliche Jahresumsatz beträgt im Eröffnungsjahr                                Der voraussichtliche Jahresumsatz beträgt im Folgejahr
                    Betrag in Euro                                                                             Betrag in Euro
                    ca. 40.000,–                                                                               ca. 80.000,–
                    Der voraussichtliche Gewinn beträgt im Eröffnungsjahr                                      Der voraussichtliche Gewinn beträgt im Folgejahr
                    Betrag in Euro                                                                             Betrag in Euro
                    ca. 10.000,–                                                                               ca. 20.000,–
                    Kleinunternehmer/innen gemäß § 6 Abs. 1 Z 27 Umsatzsteuergesetz (UStG) 1994 (deren Jahresnettoumsatz 22.000 Euro nicht übersteigt)
                    werden weiters ersucht bekanntzugeben, ob ein Regelbesteuerungsantrag gemäß § 6 Abs. 3 UStG 1994 beabsichtigt ist.
                          Nein                                          Ja (siehe Beilage)                          Ja (wird noch vorgelegt)

                          Ich beantrage die Vergabe einer Umsatzsteuer-Identifikationsnummer, da ich (voraussichtlich) Umsätze aus innergemeinschaftlichen
                    X Lieferungen bzw. innergemeinschaftlichen Erwerben erzielen werde.
                    Unternehmer/innen, die ausschließlich Umsätze ausführen, die zum Ausschluss vom Vorsteuerabzug führen, bzw. die ihre Umsätze gemäß
                    § 22 Umsatzsteuergesetz 1994 (Durchschnittssatzbesteuerung im Rahmen eines land- und forstwirtschaftlichen Betriebes) versteuern,
                    werden ersucht, den Vordruck U 15 (Antrag auf Vergabe einer Umsatzsteuer-Identifikationsnummer) dem Fragebogen ausgefüllt anzu-
                    schließen.

                    Auf Grund der ausgeübten Tätigkeit fallen auch nachstehend angeführte Abgaben an
                          Kammerumlage                      Kraftfahrzeugsteuer                  Straßenbenützungsabgabe            Normverbrauchsabgabe
                    Am Unternehmen ist ein echter stiller Gesellschafter beteiligt:    X Nein                Ja
                    Wenn ja: Name, Geburtsdatum und Anschrift (weitere echte stille Gesellschafter bitte auf einer Beilage anführen)




                    X Ich werde durch einen Bevollmächtigten vertreten: Name und Anschrift des Bevollmächtigten
                    Steuerberatungs GmbH
                    1010 Wien, Vertreterweg 1
                    01/23456
                                                                                                     Der Bevollmächtigte beruft sich auf die Bevollmächtigung. Der Umfang
                          Ich lege eine Vollmachtsurkunde (Ablichtung) bei.                          der Vollmacht ist dem angeschlossenen Schreiben zu entnehmen.
                    Ich versichere, dass ich die vorstehenden Angaben nach bestem Wissen und Gewissen vollständig und richtig gemacht habe.
                                                                                         Die Identität und der Wohnsitz des/der Abgabepflichtigen wurde mir
                                                                                         durch Originalbelege nachgewiesen.          Ja               Nein
Verf 24 - Seite 2




                                                                                                               27.04.2004               Steuerberatung
                    Datum, Unterschrift bzw. firmenmäßige Zeichnung                                     bzw.   Datum und Unterschrift des bevollmächtigten Vertreters




                                                                                                                                                                                                            81
     FINANZOnline - Hotline: 0810 / 22 11 00        An das Finanzamt                                                      Steuernummer (bitte bei allen Eingaben anführen)        Referat
                                                FA Wien 12/13/14 Purkersdorf
                                                Ullmannstraße 54, 1153 Wien                                                    765 / 4321                                          1
                                                                                                                          Eingangsvermerk des Finanzamtes



                                                                                                                            FINANZOnline, das neue Service für Sie!




                                               Sehr geehrte Steuerzahlerin! Sehr geehrter Steuerzahler!
                                               Personenbezogene Begriffe (zB Unternehmer) beziehen sich auf beide Geschlechter.
                                               Wird ohne nähere Bezeichnung auf gesetzliche Bestimmungen verwiesen, ist darunter das Umsatzsteuergesetz 1994 (UStG 1994) zu ver-
                                               stehen.



                                               Beachten Sie bitte die Ausfüllhilfe zu dieser Erklärung (Formular U 1a).

                                               Informationen zur elektronischen Erklärungsabgabe finden Sie im Internet (www.bmf.gv.at) oder direkt
                                               unter FINANZOnline (https://finanzonline.bmf.gv.at). Für telefonische Auskünfte zur elektronischen
                                               Erklärungsabgabe steht Ihnen auch die FINANZOnline - Hotline unter der Nummer 0810 / 22 11 00 zur
                                               Verfügung.
                                               Informationen zur Umsatzsteuer finden Sie im Internet unter "Steuern / Umsatzsteuer" oder "Steuern /
                                               Richtlinien Steuerrecht (Umsatzsteuerrichtlinien 2000)".


                                               Umsatzsteuererklärung für 2003                                                                               Zutreffendes bitte ankreuzen    !

                                                Unternehmer (Name, Anschrift, Telefonnummer)
                                                DRILLICH Hans
                                                1120 Wien, Handwerksweg 21



                                                Zum Unternehmen gehören Organgesellschaften


                                                X    nein
                                                                  wenn ja, Anzahl der Organgesellschaften
                                                     ja
                                                Vom Kalenderjahr abweichendes Wirtschaftsjahr (nur in diesen Fällen auszufüllen)
                                                Erklärt werden die Umsätze
                                                des Wirtschaftsjahres vom                    bis                     und/oder des Wirtschaftsjahres vom                  bis




                                                Berechnung der Umsatzsteuer:                                                                                    Bemessungsgrundlage 1)
                                                                                                                                                                Beträge in Euro und Cent

                                                Lieferungen, sonstige Leistungen und Eigenverbrauch:    1
                                                    a) Gesamtbetrag der Bemessungsgrundlagen des Veranlagungszeitraumes 2003 für
                                                       Lieferungen und sonstige Leistungen einschließlich Anzahlungen (jeweils ohne
     www.bmf.gv.at




                                                       Umsatzsteuer)                                                                                  000                      45.000,00

                                                      b) zuzüglich Eigenverbrauch                                                               2     001
                                                      c) Umsätze, für die die Steuerschuld gemäß § 19 Abs. 1a (Bauleistungen einschließlich
                                                         Anzahlungen), § 19 Abs. 1 zweiter Satz sowie Art. 19 Abs. 1 Z 3 auf den Leistungs-
                                                         empfänger übergegangen ist.                                                    3             021
                                                                                                                                                    SUMME                      45.000,00


                                               1)   Minusvorzeichen sind, soweit nicht vorgedruckt, beim Ausfüllen der Erklärung einzusetzen.

                                               U 1 Bundesministerium für Finanzen

82
                Davon steuerfrei MIT Vorsteuerabzug gemäß
                  a) § 6 Abs. 1 Z 1 iVm § 7 (Ausfuhrlieferungen)                                           4    011

                  b) § 6 Abs. 1 Z 1 iVm § 8 (Lohnveredelungen)                                             5    012
                  c) § 6 Abs. 1 Z 2 bis 6 sowie § 23 Abs. 5 (Seeschifffahrt, Luftfahrt, grenzüberschreitende
                     Personenbeförderung, Reisevorleistungen im Drittlandsgebiet usw.)                    6     015
                  d) Art. 6 Abs. 1 (innergemeinschaftliche Lieferungen
                     ohne die nachstehend gesondert anzuführenden Fahrzeuglieferungen)                     7    017
                  e) Art. 6 Abs. 1, sofern Lieferungen neuer Fahrzeuge an Abnehmer ohne UID-Nummer bzw.
                     durch Fahrzeuglieferer gemäß Art. 2 erfolgten.                                  8          018
                Davon steuerfrei OHNE Vorsteuerabzug gemäß
                  a) § 6 Abs. 1 Z 9 lit. a (Grundstücksumsätze)                                            9    019

                  b) § 6 Abs. 1 Z 27 (Kleinunternehmer)                                                    10   016
                  c) § 6 Abs. 1 Z         (übrige steuerfreie Umsätze ohne Vorsteuerabzug)                 11   020
                Gesamtbetrag der steuerpflichtigen Lieferungen, sonstigen Leistungen und Eigenverbrauch
                (einschließlich steuerpflichtiger Anzahlungen)                                                              45.000,00
                                                                                             Bemessungsgrundlage      Umsatzsteuer
                Davon sind zu versteuern mit:
                  20% Normalsteuersatz                                    12   022                     40.000,00             8.000,00

                  10% ermäßigter Steuersatz                               13   029                        5.000,00              500,00

                  12% für Weinumsätze durch landwirtschaftliche Betriebe 14    025
                  16% für Jungholz und Mittelberg                         15   035
                  10% Zusatzsteuer für pauschalierte Landwirte            16   052
                    8% Zusatzsteuer für pauschalierte Landwirte           17   038
                Weiters zu versteuern:
                Steuerschuld gemäß § 11 Abs. 12 und 14, § 16 Abs. 2 sowie gemäß Art. 7 Abs. 4              18   056
                                                                                                          19
                Steuerschuld gemäß § 19 Abs. 1 zweiter Satz sowie gemäß Art. 19 Abs. 1 Z 3 und Art. 25 Abs. 5   057
                Steuerschuld gemäß § 19 Abs. 1a (Bauleistungen)                                            20   048
                                                                                             Bemessungsgrundlage

                Innergemeinschaftliche Erwerbe:
                    Gesamtbetrag der Bemessungsgrundlagen für
                    innergemeinschaftliche Erwerbe                        21   070                        2.800,00

                   Davon steuerfrei gemäß Art. 6 Abs. 2                   22   071
                Gesamtbetrag der steuerpflichtigen innergemeinschaftlichen Erwerbe                        2.800,00
                Davon sind zu versteuern mit:                             23
                   20% Normalsteuersatz                                        072                        2.800,00              560,00

                   10% ermäßigter Steuersatz                                   073
                   16% für Jungholz und Mittelberg                             075
                Nicht zu versteuernde Erwerbe:                           24
                   Erwerbe gemäß Art. 3 Abs. 8 zweiter Satz, die im Mit-
                   gliedstaat des Bestimmungslandes besteuert worden sind      076
                   Erwerbe gemäß Art. 3 Abs. 8 zweiter Satz, die gemäß
                   Art. 25 Abs. 2 im Inland als besteuert gelten               077
                ÜBERTRAG (Umsatzsteuer)                                                                                      9.060,00
U 1 - Seite 2




                                                                                                                                         83
                       ÜBERTRAG (Umsatzsteuer)                                                                                                             9.060,00
                       Berechnung der abziehbaren Vorsteuer:                                              25
                          Gesamtbetrag der Vorsteuern [einschließlich der pauschal ermittelten Vorsteuern
                          (Kennzahlen 084, 085, 086, 069, 078, 068, 079) aber ohne die übrigen gesondert
                          anzuführenden Vorsteuerbeträge (Kennzahlen 061, 083, 065, 066, 082, 064, 062,
                          063, 067)]                                                                                             060                        -700,00
                           In Kennzahl 060 enthaltene pauschal ermittelte Vorsteuern:                                     26
                              a) Pauschalierung gemäß § 14 Abs. 1 Z 1 (Basispauschalierung)                                      084
                              b) Drogisten, Verordnung BGBl. II Nr. 229/1999                                                     085
                              c) Bestimmte Gruppen von Unternehmern, Verordnung BGBl. Nr. 627/1983                               086
                              d) Gaststätten- und Beherbergungsgewerbe, Verordnung BGBl. II Nr. 227/1999                         069
                              e) Lebensmitteleinzel- oder Gemischtwarenhändler, Verordnung BGBl. II Nr. 228/1999                 078
                              f) Handelsvertreter, Verordnung BGBl. II Nr. 95/2000                                               068
                              g) Künstler und Schriftsteller, Verordnung BGBl. II Nr. 417/2000                                   079
                           Gesondert anzuführende Vorsteuerbeträge:                                                       27
                           Vorsteuern betreffend die entrichtete Einfuhrumsatzsteuer (§ 12 Abs. 1 Z 2 lit. a)                    061
                           Vorsteuern betreffend die geschuldete, auf dem Abgabenkonto                                    28
                           verbuchte Einfuhrumsatzsteuer (§ 12 Abs. 1 Z 2 lit. b)                                                083

                           Vorsteuern aus dem innergemeinschaftlichen Erwerb                                              29     065                        -560,00
                           Vorsteuern betreffend die Steuerschuld gemäß § 19 Abs. 1 zweiter Satz sowie
                           gemäß Art. 19 Abs.1 Z 3 und Art. 25 Abs. 5                                                     19     066
                           Vorsteuern betreffend die Steuerschuld gemäß § 19 Abs. 1a (Bauleistungen)                      30     082
                           Vorsteuern gemäß § 12 Abs. 16 und Vorsteuern für innergemeinschaftliche Lieferungen
                           neuer Fahrzeuge von Fahrzeuglieferern gemäß Art. 2                                             31     064

                           Davon gemäß § 12 Abs. 3 iVm Abs. 4 und 5                                                       32     062

                           Berichtigung gemäß § 12 Abs. 10 und 11                                                         33     063
                           Berichtigung gemäß § 16                                                                        34     067
                           Gesamtbetrag der abziehbaren Vorsteuer                                                                                          -1.260,00
                       Sonstige Berichtigungen:                                                                           35
                                                                                                                                 090
                           Zahllast (Plusvorzeichen)                 Gutschrift (Minusvorzeichen)                                095                       7.800,00

                           Hierauf entrichtete Vorauszahlungen (Minusvorzeichen) bzw. durchgeführte Gutschriften (Plusvorzeichen)


                                                               Ergibt    X    Restschuld                    Gutschrift                                     7.800,00
                     Kammerumlagepflicht
                     (§ 122 Wirtschaftskammergesetz) liegt vor:                        ja                 nein

                     An Kammerumlage wurde für 2003 entrichtet:
                     (nur auszufüllen, wenn kein abweichendes Wirtschaftsjahr vorliegt)

                     Bitte zu beachten: Bestimmte nachteilige Folgen der nicht zeitgerechten Entrichtung der Umsatzsteuer-Vorauszahlungen (Vollstreckungs-
                     maßnahmen, Einleitung eines Finanzstrafverfahrens) können durch die umgehende Entrichtung der bereits fälligen Restschuld vermieden
                     werden.
                     Ich versichere, dass ich die vorstehenden Angaben nach bestem Wissen und Gewissen richtig und vollständig gemacht habe. Mir ist
                     bekannt, dass die Angaben überprüft werden und dass unrichtige oder unvollständige Angaben strafbar sind. Sollte ich nachträglich
                     feststellen, dass die vorstehende Erklärung unrichtig oder unvollständig ist, werde ich meiner Anzeigepflicht gemäß § 139 Bundes-
                     abgabenordnung unverzüglich nachkommen.

                      Steuerliche Vertretung (Name, Anschrift, Telefonnummer)
                      Steuerberatungs GmbH
                      1010 Wien, Vertreterweg 1
     U 1 - Seite 3




                      01/23456
                                                                                                         27.04.2004            Steuerberatung
                                                                                                         Datum, Unterschrift bzw. firmenmäßige Zeichnung



84
FINANZOnline - Hotline: 0810 / 22 11 00



                                           Finanzamt                                                                  Steuernummer                                                 Referat
                                          FA Wien 12/13/14 Purkersdorf                                                     765 / 4321                                               1
                                          Ullmannstraße 54, 1153 Wien                                                 Eingangsvermerk des Finanzamtes
                                                                                                                          FINANZOnline, das neue Service für Sie!
                                          Sehr geehrte Steuerzahlerin! Sehr geehrter Steuerzahler! Personenbezogene Begriffe (zB Einzelunternehmer) beziehen sich auf beide
                                          Geschlechter. Wird ohne nähere Bezeichnung auf gesetzliche Bestimmungen verwiesen, ist darunter das Einkommensteuergesetz 1988
                                          (EStG 1988) zu verstehen.
                                          Beachten Sie bitte die Ausfüllhilfe zu dieser Erklärung (Formular E 2).
                                          Informationen zur elektronischen Erklärungsabgabe finden Sie im Internet (www.bmf.gv.at) oder direkt
                                          unter FINANZOnline (https://finanzonline.bmf.gv.at). Für telefonische Auskünfte zur elektronischen
                                          Erklärungsabgabe steht Ihnen auch die FINANZOnline - Hotline unter 0810 / 22 11 00 zur Verfügung.
                                          Informationen zur Einkommensteuer finden Sie im Internet unter "Steuern / Einkommensteuer" oder
                                          "Steuern / Richtlinien Steuerrecht (Einkommensteuerrichtlinien 2000)".
                                          Einkommensteuererklärung für 2003                                                                                 Zutreffendes bitte ankreuzen         !

                                           Angaben zur Person                                                                                       Bitte unbedingt ausfüllen
                                           Familien- und Vorname (in Blockschrift)                                                     Versicherungs-               Geburtsdatum (TTMMJJ)
                                          DRILLICH Hans                                                                                nummer                9876 111155
                                           Postleitzahl       Derzeitige Wohnanschrift (Ort, Straße, Haus-Nr., Tür-Nr.)
                                          1130                Wohnstraße 45
                                           Tagsüber erreichbar unter (Telefon)                                                         Geschlecht
                                                                               987 65 43                                                  weiblich                   X männlich
                                          Familienstand im Jahr 2003 (Bitte nur ein Kästchen ankreuzen)                                                                seit (Datum: TTMMJJ)
                                          X verheiratet                                ledig                                       geschieden
                                             in Partnerschaft lebend                    verwitwet                                  dauernd getrennt lebend              13.06.1990
                                           Familien- und Vorname des (Ehe)Partners (in Blockschrift)                                   Versicherungs-                  Geburtsdatum (TTMMJJ)
                                          DRILLICH Gabriele                                                                            nummer                5432 010160
                                           Bezugs-, pensionsauszahlende Stellen im Jahr 2003 (Arbeitgeber/Pensionsstellen;                    Anzahl
                                           jedoch nicht Leistungen des AMS, Kinderbetreuungsgeld, Krankengeld etc.). Für den Fall,



                                                                                                                                                        !
                                           dass bereits eine gemeinsame Besteuerung von Bezügen erfolgt, ist für die gemeinsam                              Bitte unbedingt ausfüllen,
                                           versteuerten Bezüge eine einzige bezugs- oder pensionsauszahlende Stelle anzugeben.
                                                                                                                                                1
                                                                                                                                                            weil sich sonst die Erledigung
                                           (Die Beilage eines Lohnzettels ist nicht erforderlich)
                                                                                                                                                            der Erklärung verzögert!
                                           Mitteilungen gemäß § 109a für 2003 1                                                     Anzahl
                                           (Die Beilage einer erhaltenen Mitteilung ist nicht erforderlich)                            0
                                           Ich habe 2003 Bezüge aus einer gesetzlichen Kranken-/Unfallversicherung (Krankengeld/Unfallrente), Arbeitslosenunterstützung,
                                           Notstandshilfe, Überbrückungshilfe für Bundesbedienstete, Entschädigungen für Truppen-, Kader- oder Waffenübungen, rückgezahlte
                                           Pflichtbeiträge an Sozialversicherung oder Bezüge aus dem Insolvenz-Ausgleichs-Fonds erhalten.
                                           Diese Bezüge sind nicht bei der Anzahl der bezugs-, pensionsauszahlenden Stellen anzugeben.
                                                        Ja           Bitte unbedingt ausfüllen, weil sich sonst die Erledigung der Erklärung verzögert!        X Nein
                                           Alleinverdienerabsetzbetrag 2
                                           X Ich beanspruche den Alleinverdienerabsetzbetrag [mein (Ehe)Partner beansprucht selbst keinen Alleinverdienerabsetzbetrag]
                                               Ein Alleinverdienerabsetzbetrag steht nur zu:
                                               bei Ehe: Der Ehepartner (ohne Kind/er) darf Einkünfte von höchstens 2.200 Euro jährlich beziehen .
                                               bei (Ehe)Partnerschaft mit Kind/ern: Der (Ehe)Partner darf Einkünfte von höchstens 4.400 Euro (inkl. Wochengeld) jährlich beziehen.
                                               bei Antragstellern aus Nicht-EU/EWR-Staaten: Der (Ehe)Partner muss sich in Österreich aufhalten.
                                           Alleinerzieherabsetzbetrag 3                                   Sonderausgabenerhöhungsbetrag ab 3 Kindern 4
                                               Ich beanspruche den Alleinerzieherabsetzbetrag                 Ich beanspruche den zusätzlichen Sonderausgabenerhöhungsbetrag ab 3 Kindern
                                                                                                                                                                            Anzahl der Kinder
                                           Kinder, für die ich oder mein (Ehe)Partner 2003 für mindestens sieben Monate die Familienbeihilfe bezogen habe/hat.
                                                                                                                                                                                        2
                                           Mehrkindzuschlag: Nur auszufüllen, wenn das (Familien)Einkommen 2003 den Betrag von 40.320 Euro nicht überstiegen hat. 5

                                               Ich beanspruche den Mehrkindzuschlag, da jeweils               Ich erkläre, dass ich 2003 mehr als 6 Monate in einer Ehe oder Partnerschaft
                                               ich und/oder mein (Ehe)Partner 2003 für mehr als               gelebt habe und das gemeinsame Einkommen 40.320 Euro nicht überstiegen
                                               2 Kinder Familienbeihilfe bezogen habe/hat.                    hat. (Nur auszufüllen bei Vorliegen einer Ehe oder Partnerschaft)
                                           Überweisung des Mehrkindzuschlages [Bei Überweisungen ins Ausland sind unbedingt an Stelle der BLZ der BIC und an Stelle der
                                           Kontonummer die IBAN (siehe Bankkontoauszug) anzugeben.]
                                           Bankleitzahl             Giro-/Postscheckkonto Nr.                    Bezeichnung der Bank (wenn Bankleitzahl nicht bekannt)
www.bmf.gv.at




                                               Ich beanspruche den Unterhaltsabsetzbetrag für folgende nicht haushaltszugehörige Kinder, für die ich 2003 den gesetzlichen
                                               Unterhalt (Alimente) geleistet habe (bitte jedenfalls das Geburtsdatum ausfüllen). 6
                                          Versicherungs-         Geburtsdatum              Unterhaltszahlungen        Versicherungs-       Geburtsdatum              Unterhaltszahlungen
                                             nummer               (TTMMJJ)                    von MM - MM                nummer             (TTMMJJ)                    von MM - MM

                                                   1111       311285                 von        1   bis      12 03                                             von           bis            03


                                                                                     von            bis          03                                            von           bis            03

                                                                                  von           bis         03                                           von          bis          03
                                           Die Höhe der geleisteten Zahlungen wird von mir über Verlangen des Finanzamtes nachgewiesen (Einzahlungsbelege, Empfangs-
                                           bestätigungen). Mir ist bekannt, dass der Unterhaltsabsetzbetrag für Monate nicht zusteht, für die ich oder mein (Ehe)Partner für eines der
                                           angeführten Kinder Familienbeihilfe bezogen habe/hat.

                                          E 1 Bundesministerium für Finanzen
                                                                                                                                                                                                     85
                                                                                                                              Beträge in Euro

                     1. Einkünfte aus Land- und Forstwirtschaft                                              7

                       a) Als Einzelunternehmer - Ergebnis aus der/den Beilage(n) E 1a, bei Pauschalierung aus E 1c

                       b) Als Beteiligter (Mitunternehmer) - Ergebnis aus der Beilage E 106b
                          (ohne endbesteuerungsfähige Kapitalerträge)
                       c) Davon auszuscheiden wegen Verteilung der Einkünfte
                          auf 3 Jahre                                                                        11        311

                            auf 5 Jahre                                                                      12        312

                            auf 10 Jahre                                                                     13        315
                       d) Zu berücksichtigender Freibetrag für Veräußerungsgewinn gemäß § 24 Abs. 4
                          und/oder im Jahr 2003 zu berücksichtigende Siebentelbeträge aus Über-
                          gangsverlusten der Vorjahre                                                        11        313
                       e) Anzusetzende Teilbeträge, weil in Vorjahren eine Einkünfteverteilung auf
                          3/5/10 Jahre durchgeführt wurde, und/oder wegen Verlustverwertung im
                          Ausland nachzuversteuernde ausländische Verluste                                   14        314
                       f) In Punkt a) und/oder b) nicht enthaltene betriebliche Kapitalerträge aus in- und
                          ausländischen Kapitalanlagen, für die die Mitveranlagung beantragt wird            15        780
                                                                                               Summe aus 1.a) bis f)   310
                       In der Kennzahl 310 nicht enthaltene betriebliche Kapitalerträge aus ausländischen
                       Kapitalanlagen, die mit dem besonderen Steuersatz von 25% zu besteuern sind 16                  781

                     2. Einkünfte aus selbständiger Arbeit                                                   8

                       a) Als Einzelunternehmer - Ergebnis aus der/den Beilage(n) E 1a

                       b) Als Beteiligter (Mitunternehmer) - Ergebnis aus der Beilage E 106b
                          (ohne endbesteuerungsfähige Kapitalerträge)
                       c) Davon auszuscheiden wegen Verteilung der Einkünfte
                          auf 3 Jahre                                                                        11        321

                            auf 5 Jahre                                                                      12        322

                            auf 10 Jahre                                                                     13        316
                       d) Zu berücksichtigender Freibetrag für Veräußerungsgewinn gemäß § 24 Abs. 4
                          und/oder im Jahr 2003 zu berücksichtigende Siebentelbeträge aus Über-
                          gangsverlusten der Vorjahre                                                        11        323
                       e)        Ich beantrage gemäß § 37 Abs. 9 unwiderruflich, meine positiven
                                 Einkünfte aus künstlerischer und/oder schriftstellerischer Tätigkeit auf
                                 das Erklärungsjahr und die beiden Vorjahre gleichmäßig zu verteilen.
                                 Auszuscheiden sind daher 2/3.                                               9         325
                       f) Anzusetzende Teilbeträge, weil eine Einkünfteverteilung gemäß Punkt c)
                          und/oder e) durchgeführt wurde, und/oder wegen Verlustverwertung im Aus-
                          land nachzuversteuernde ausländische Verluste                                      14        324
                       g) In Punkt a) und/oder b) nicht enthaltene betriebliche Kapitalerträge aus in- und
                          ausländischen Kapitalanlagen, für die die Mitveranlagung beantragt wird            15        782
                                                                                               Summe aus 2.a) bis g)   320
                       In Kennzahl 320 nicht enthaltene betriebliche Kapitalerträge aus ausländischen
                       Kapitalanlagen, die mit dem besonderen Steuersatz von 25% zu besteuern sind           16        783

                     3. Einkünfte aus Gewerbebetrieb                                                         10
                       a) Als Einzelunternehmer ohne pauschalierte Einkünfte gemäß Punkt b)
                          Ergebnis aus der/den Beilage(n) E 1a                                                                        31.000,00
                       b) Einkünfte aus Vollpauschalierung
                            für Gastwirte:
                            Höhe des pauschal ermittelten Gewinnes                                                     9005
                            für Lebensmitteleinzel-/Gemischtwarenhändler:
                            Höhe des pauschal ermittelten Gewinnes                                                     9006
     E 1 - Seite 2




                                Bei Vollpauschalierung gemäß Punkt b):
                                Wechsel der Gewinnermittlungsart (§ 4 Abs. 10) wurde vorgenommen

                                Höhe des Übergangsgewinnes/-verlustes                                                  9010



86
                           Bei Vollpauschalierung gemäß Punkt b):
                           (Teil-)Betrieb wurde veräußert oder aufgegeben

                           Höhe des Veräußerungsgewinnes/-verlustes (vor allfälligem Freibetrag)                     9020
                           Bei Vollpauschalierung gemäß Punkt b):
                           Ein Antrag gemäß § 24 Abs. 6 wird gestellt (Gebäudebegünstigung bei Betriebsaufgabe)
                           Bei Vollpauschalierung gemäß Punkt b):
                           Im Veranlagungszeitraum erfolgte eine Umgründung
                   c) Als Beteiligter (Mitunternehmer) - Ergebnis aus der Beilage E 106b
                      (ohne endbesteuerungsfähige Kapitalerträge)
                   d) Davon auszuscheiden wegen Verteilung der Einkünfte
                      auf 3 Jahre                                                                         11         327

                      auf 5 Jahre                                                                         12         328

                      auf 10 Jahre                                                                        13         317
                   e) Zu berücksichtigender Freibetrag für Veräußerungsgewinn gemäß § 24 Abs. 4
                      und/oder im Jahr 2003 zu berücksichtigende Siebentelbeträge aus Über-
                      gangsverlusten der Vorjahre                                                         11         329
                   f) Anzusetzende Teilbeträge, weil in Vorjahren eine Einkünfteverteilung auf
                      3/5/10 Jahre durchgeführt wurde, und/oder wegen Verlustverwertung im
                      Ausland nachzuversteuernde ausländische Verluste                                    14         326
                   g) In Punkt a), b) und/oder c) nicht enthaltene betriebliche Kapitalerträge aus in-
                      und ausländischen Kapitalanlagen, für die die Mitveranlagung beantragt wird         15         784
                                                                                             Summe aus 3.a) bis g)   330    31.000,00
                   In Kennzahl 330 nicht enthaltene betriebliche Kapitalerträge aus ausländischen
                   Kapitalanlagen, die mit dem besonderen Steuersatz von 25% zu besteuern sind            16         785
                   In Kennzahl 330 enthaltene Einkünfte, die gemäß Anlage 2 zum BSVG beitragsbegründend
                   wirken (zB Einkünfte aus gewerblicher Nutztierhaltung und Pflanzenproduktion)                     491
                   In Kennzahl 330 enthaltene Einkünfte, die gemäß Anlage 2 zum BSVG beitragserhöhend
                   wirken (zB Einkünfte aus land- und forstwirtschaftlichem Nebenerwerb)                             492

                Bei den betrieblichen Einkünften (Summe 1-3) wurden gewinnmindernd berücksichtigt:

                Forschungsfreibetrag (§ 4 Abs. 4 Z 4)                                                                445
                Forschungsfreibetrag (§ 4 Abs. 4 Z 4a)                                                               744
                Bildungsfreibetrag (§ 4 Abs. 4 Z 8)                                                                  402
                Bildungsfreibetrag (§ 4 Abs. 4 Z 10)                                                                 761
                Vorzeitige Abschreibung (§ 10a Abs. 3 und/oder § 10c)                                                745
                Eigenkapitalzuwachsverzinsung (§ 11)                                                      17         403
                Übertragungsrücklage (§ 12)                                                                          447
                Vorsorge für Abfertigungen, Pensionen und/oder Jubiläumsgelder (§ 14)                     18         489
                Lehrlingsfreibetrag (§ 124 b Z 31)                                                                   404

                In den betrieblichen Einkünften sind nicht
                ausgleichsfähige Verluste im Sinne des
                                                                          a) Eigener Betrieb              19         341
                § 2 Abs. 2a und/oder § 10 Abs. 8 enthalten
                                                                          b) Beteiligungen                20         342
                Mit den betrieblichen Einkünften aus einer Ein-
                kunftsquelle, bei der in den Vorjahren nicht              a) Eigener Betrieb              21         332
                ausgleichsfähige Verluste entstanden sind,
E 1 - Seite 3




                sind gemäß § 2 Abs. 2b und/oder § 10 Abs. 8
                zu verrechnen                                             b) Beteiligungen                21         346
                In den betrieblichen Einkünften (Kennzahlen 310, 320, 330) sind Verluste enthalten,
                für die ein Verlustabzug (Verlustvortrag) nicht zulässig ist (in Höhe von)                22         334



                                                                                                                                        87
                     4. Einkünfte aus nichtselbständiger Arbeit
                     4.1. Lohnsteuerpflichtige Einkünfte: Die Höhe der Einkünfte aus nichtselbständiger Arbeit gemäß Kenn-
                          zahl 245 des Lohnzettels ist von der auszahlenden Stelle dem Betriebsfinanzamt zu übermitteln und
                          braucht daher von Ihnen nicht eingetragen werden.
                     Soweit ein Abzug nicht bereits durch den Arbeitgeber erfolgte, ist/sind hier einzutragen:
                     Gewerkschaftsbeiträge, sonstige Beiträge zu Berufsverbänden und Interessenvertretungen und
                     selbst eingezahlte SV-Beiträge (zB SVdGW, Apotheker), ausgenommen Betriebsratsumlage          23    717                           30,00

                     Pendlerpauschale                                                                              23    718
                     Pflichtbeiträge auf Grund einer geringfügigen Beschäftigung sowie Pflichtbeiträge für
                     mitversicherte Angehörige                                                                     23    274
                     Hier sind weitere Werbungskosten einzutragen. Bitte geben Sie jeweils den Jahresbetrag der Aufwendungen abzüglich steuerfreier Ersätze oder
                     Vergütungen an. Betragen die Werbungskosten insgesamt nicht mehr als 132 Euro jährlich, ist eine Eintragung nicht erforderlich. 24

                     Arbeitsmittel (bei Anschaffungen über 400 Euro nur AfA)                                             719
                     Fachliteratur (keine allgemein bildenden Werke wie Lexika, Nachschlagewerke, Zeitungen etc.)        720
                     Reisekosten (ohne Fahrtkosten zwischen Wohnung und Arbeitsstätte)                                   721
                     Fortbildungs- und abzugsfähige Ausbildungskosten, Umschulung                                        722
                     Kosten für doppelte Haushaltsführung und Familienheimfahrten                                        723
                     Sonstige Werbungskosten (zB Betriebsratsumlage)                                                     724
                     Zur Geltendmachung eines Berufsgruppenpauschales tragen Sie bitte ein:
                     A: Artisten - B: Bühnenangehörige, Filmschauspieler - F: Fernsehschaffende - J: Journalisten - M: Musiker - FO: Forstarbeiter ohne
                     Motorsäge, Förster und Berufsjäger im Revierdienst - FM: Forstarbeiter mit Motorsäge - HA: Hausbesorger, soweit sie dem
                     Hausbesorgergesetz unterliegen - HE: Heimarbeiter - V: Vertreter - P: Mitglieder einer Stadt-, Gemeinde- oder Ortsvertretung
                     Kurzbezeichnung             Zeitraum der Tätigkeit und allfällige Unterbrechungen in Form TT.MM. bis        Vom Dienstgeber steuerfrei
                     der Berufsgruppe            TT.MM. (bei Fernsehschaffenden nur die Anzahl der Auftritte pro Monat)          erhaltene Kostenersätze
                                                                                                                                 (ausgenommen bei Vertretern)




                     4.2. Nicht lohnsteuerpflichtige Einkünfte:
                          a) Einkünfte aus nichtselbständiger Arbeit, die nicht lohnsteuerpflichtig sind, und in
                             denen Einkünfte enthalten sind, für die eine begünstigte Besteuerung von
                             Sonderzahlungen (zB 13. und 14. Bezug) in Betracht kommt                        25          762
                          b) Einkünfte aus nichtselbständiger Arbeit, die nicht lohnsteuerpflichtig sind, und in
                             denen keine Einkünfte enthalten sind, für die eine begünstigte Besteuerung von
                             Sonderzahlungen (zB 13. und 14. Bezug) in Betracht kommt                        26          359
                     Nur für allfällige Berechnung des Gesamtbetrages der Einkünfte auszufüllen!
                     Einkünfte aus nichtselbständiger Arbeit


                     5. Einkünfte aus Kapitalvermögen 27
                     5.1. Nicht endbesteuerungsfähige Kapitalerträge (Einnahmen abzüglich Werbungskosten)
                          a) Nicht endbesteuerungsfähige Kapitalerträge, die einem Kapitalertragsteuerabzug
                             unterliegen (insbesondere Gewinnanteile als echter stiller Gesellschafter, einschließlich
                             der Überschüsse aus der Abschichtung einer Beteiligung), einschließlich der davon
                             einbehaltenen bzw. zuzüglich der vom Schuldner übernommenen Kapitalertragsteuer 28          367
                          b) Einkünfte aus Kapitalvermögen, die keinem Steuerabzug unterliegen (zB bis 31. 3. 2003
                             zugeflossene Zinsen aus Einlagen und Forderungswertpapieren bei ausländischen
                             Banken sowie Dividenden von ausländischen Aktien, Zinsen aus Privatdarlehen und
                             Wertpapiererträge aus abzugsfreien Altemissionen)                                     29    361                         600,00
                     Kapitalertragsteuer, soweit sie auf nicht endbesteuerungsfähige Kapitalerträge (Kennzahl 367)
                     oder auf in den Kennzahlen 310, 320, 330 enthaltene Kapitalerträge entfällt, und/oder
                     Sicherungssteuer                                                                          30        365
                     5.2. Endbesteuerungsfähige Kapitalerträge 31
                          a) Kapitalerträge aus endbesteuerungsfähigen Kapitalanlagen zum vollen Steuersatz (ins-
                             besondere Zinsen aus Einlagen und Anleihen), einschließlich der davon einbehaltenen
                             bzw. zuzüglich der vom Schuldner übernommenen Kapitalertragsteuer
                             Nur für allfällige Anrechnung auszufüllen!                                                  366
                          b) Kapitalerträge aus endbesteuerungsfähigen Kapitalanlagen zum halben Steuersatz (ins-
                             besondere Dividenden), einschließlich der davon einbehaltenen bzw. zuzüglich der vom
     E 1 - Seite 4




                             Schuldner übernommenen Kapitalertragsteuer
                             Nur für allfällige Anrechnung auszufüllen!                                                  369
                     Kapitalertragsteuer, soweit sie auf endbesteuerungsfähige Kapitalerträge (Kennzahlen 366,
                     369) bzw. auf in der Kennzahl 444 (siehe Punkt 7.) enthaltene Beträge entfällt                      364


88
                5.3 Kapitalerträge aus ausländischen Kapitalanlagen ohne Kapitalertragsteuerabzug (ab 1.4.2003)
                    a) Kapitalerträge aus ausländischen Kapitalanlagen, die mit dem besonderen
                       Steuersatz von 25% zu besteuern sind                                          32 754

                    b) Kapitalerträge aus ausländischen Kapitalanlagen zum vollen Steuersatz
                       (Antragsveranlagung)                                                                      33   755
                    c) Kapitalerträge aus ausländischen Kapitalanlagen zum halben Steuersatz
                       (Antragsveranlagung)                                                                      34   756
                    d) Auf Einkünfte gemäß Kennzahl 754 sowie Kennzahlen 781, 783 und 785
                       entfallende anzurechnende ausländische (Quellen)Steuer                                    35   757
                    e) Auf Einkünfte gemäß Kennzahl 755 entfallende anzurechnende ausländische
                       (Quellen)Steuer                                                                           36   758
                    f) Auf Einkünfte gemäß Kennzahl 756 entfallende anzurechnende ausländische
                       (Quellen)Steuer                                                                           37   759
                5.4 Zur Gutschrift eines überhöhten Kapitalertragsteuerabzuges bei Ausschüttungen
                    ausländischer Investmentfonds ab 1. 4. 2003:
                    Negative ausschüttungsgleiche Erträge, die durch Abzug tatsächlicher Ausschüttungen
                    entstehen (nur in Verbindung mit Endbesteuerung)                                             38   760

                    Mein (Ehe)Partner beansprucht
                    den Alleinverdienerabsetzbetrag                 ja         39

                    Für mich (für den Antragsteller)
                    wurde 2003 Familienbeihilfe bezogen für:                  39              Anzahl der Monate
                    In Pkt. 5.2 a) sind Kapitalerträge aus Geldeinlagen etc. bei inländischen Kreditinstituten ent-
                    halten, die der Schenkungssteuerbefreiung gemäß § 15 Abs. 1 Z 19 Erbschafts- und
                    Schenkungssteuergesetz unterliegen                                                              40
                                                                             Einlagenstand im Zeitpunkt der Schenkung:
                    Kapitalertragsteuer des Jahres 2003, die auf Kapitalerträge aus der (den) geschenkten
                    Kapitalanlage(n) entfällt                                                                         40

                    Bitte das Verwandtschaftsverhältnis (entsprechend den Steuerklassen gemäß § 7 Erbschafts-
                    und Schenkungssteuergesetz 1955) zum Geschenkgeber angeben:                                       40

                          I: Ehegatte                                    I: Kinder, Adoptivkinder, Stiefkinder

                          II: Enkelkinder

                          III: Eltern, Großeltern, Stiefeltern, Geschwister


                          IV: Schwiegerkinder, Schwiegereltern, Nichten, Neffen

                          V: Alle übrigen Erwerber


                6. Einkünfte aus Vermietung und Verpachtung 41

                    a) Von Grundstücken und Gebäuden - Ergebnis aus der/den Beilage(n) E 1b                                 3.180,00

                    b) Als Beteiligter (Miteigentümer) - Ergebnis aus der Beilage E 106b

                    c) Davon auszuscheiden wegen Verteilung der Einkünfte auf 3 Jahre                                 378
                    d) Anzusetzende Teilbeträge, weil in Vorjahren eine Einkünfteverteilung auf 3 Jahre
                       durchgeführt wurde, und/oder wegen Verlustverwertung im Ausland nachzuver-
                       steuernde ausländische Verluste                                                                376
                    e) Sonstige Einkünfte aus Vermietung und Verpachtung (zB Einkünfte aus Betriebs-
                       verpachtung nach einer Betriebsaufgabe)                                                        373
                                                                                          Summe aus 6.a) bis e)       370   3.180,00

                7. Sonstige Einkünfte

                    Sonstige Einkünfte                                                                           42   380
                    Substanzgewinne aus inländischen Investmentfonds (Tarifversteuerung)                         43   444
E 1 - Seite 5




                    Substanzgewinne aus ausländischen Investmentfonds (25%)                                      44   409
                    Substanzgewinne aus ausländischen Investmentfonds (Tarifversteuerung)                        44   448



                                                                                                                                       89
                          In den außerbetrieblichen Einkünften sind nicht ausgleichsfähige Verluste im Sinne
                          des § 2 Abs. 2a enthalten                                                                  45   371
                          Mit außerbetrieblichen Einkünften aus einer Einkunftsquelle, bei der in Vorjahren nicht-
                          ausgleichsfähige Verluste entstanden sind, sind gemäß § 2 Abs. 2b zu verrechnen            46   372

                                                Summe der Kennzahlen 310, 320, 330, 359, 762, 367, 361, 370 und 380       777   34.780,00

                                                         Gesamtbetrag der Einkünfte: (muss nicht ausgefüllt werden)


                     8.   Angaben für Tarifbegünstigungen
                          Einkünfte gemäß § 37 (ausgenommen Einkünfte laut Kennzahlen 369, 756),
                          § 38, § 24 Abs. 6 für die ich den Hälftesteuersatz beanspruche                             47   423
                          Gewinne aus einem Schuldnachlass auf Grund eines gerichtlichen Ausgleiches,
                                                                                                                     48   386
                          eines Zwangsausgleiches oder aus anderen Gründen

                          Bei gerichtlichem Ausgleich oder Zwangsausgleich: Prozentsatz der Ausgleichsquote               496
                          Einkünfte, die aus sonstigen Gründen besonders zu besteuern sind (Art):                    49

                          Sonstige anzurechnende Steuern (Art):                                                      50
                                                                                                                          375

                     9.   Ausländische Einkünfte
                          In den Einkünften sind enthalten: Ausländische Einkünfte, für die Österreich das Be-
                          steuerungsrecht zusteht (ohne Kapitalerträge laut Kennzahlen 754, 755, 756 und Einkünfte
                          gemäß Kennzahl 786)                                                                      51     395
                          Zur Vermeidung der Doppelbesteuerung ist hinsichtlich von Einkünften gemäß
                          Kennzahl 395 Steuer (ohne Quellensteuer laut Kennzahlen 757, 758, 759 und
                          Kennzahl 787) anzurechnen in Höhe von                                              51           396
                          In den Einkünften sind enthalten: Ausländische tarifbegünstigte Einkünfte, für die
                          Österreich das Besteuerungsrecht mit dem Hälftesteuersatz zusteht (ohne Kapital-
                          erträge laut Kennzahlen 781, 783, 785, 754, 756, zB ausländische betriebliche
                          Dividenden)                                                                        52           786
                          Zur Vermeidung von Doppelbesteuerung ist hinsichtlich von Einkünften gemäß
                          Kennzahl 786 Steuer anzurechnen in Höhe von                                                52   787
                          In den Einkünften sind nicht enthalten: Unter Progressionsvorbehalt steuerbefreite
                          Auslandseinkünfte                                                                          53   440
                          In den Einkünften sind enthalten: Ausländische Verluste aus Betriebsstätten, für die
                          das Besteuerungsrecht einem anderen Staat zusteht                                          14   746

                     10. Sonderausgaben             54

                          Summe aller Beiträge und Versicherungsprämien (freiwillige Kranken-, Unfall-, Lebens-
                          versicherung, Witwen-, Waisenversorgung und Pensions- bzw. Sterbekassen), freiwillige
                          Höherversicherung im Rahmen der gesetzlichen Pensionsversicherung                               455    2.100,00
                          Summe aller Beiträge sowie Rückzahlungen von Darlehen und Zinsen, die zur Schaf-
                          fung und Errichtung oder Sanierung von Wohnraum geleistet wurden                                456    3.700,00
                          Aufwendungen für Genussscheine und junge Aktien einschließlich Wohnsparaktien,
                          Wandelschuldverschreibungen bzw. Partizipationsrechte zur Förderung des Wohnbaus                465
                          Freiwillige Weiterversicherungen und Nachkauf von Versicherungszeiten in der
                          gesetzlichen Pensionsversicherung, Renten oder dauernde Lasten                                  450
                          Beiträge an gesetzlich anerkannte Kirchen und Religionsgesellschaften                           458      75,00
                          Private Zuwendungen an begünstigte Spendenempfänger (bestimmte Forschungs- und
                          Lehreinrichtungen, Museen von Körperschaften öffentlichen Rechts ua.)                           459
                          Steuerberatungskosten                                                                           460
                          Ab 1. Mai 2003: Ausgaben für die erstmalige Herstellung (max. 50 Euro) und laufende Grund-
                          entgelte eines Internetzuganges (max. 40 Euro monatlich) mittels Breitbandtechnik          55   752
                          Verlustabzug 56
                          a) Offene Verlustabzüge aus den Jahren ab 1991 und wegen Anwendung der Vortrags-
                             grenze (§ 2 Abs. 2b Z 2) abzugsfähig bleibende Fünftelverluste aus 1989/1990.                462
     E 1 - Seite 6




                          b) Im Gesamtbetrag der Einkünfte enthaltene Sanierungs-, Veräußerungs- bzw.
                             Aufgabegewinne zur Ermittlung der Verlustvortragsgrenze gemäß § 2 Abs. 2b 57                 419




90
                11. Außergewöhnliche Belastungen 58
                     Außergewöhnliche Belastungen (mit Selbstbehalt)
                     (Bitte geben Sie jeweils den Jahresbetrag der Aufwendungen abzüglich erhaltener oder zustehender Ersätze bzw. Vergütungen an.
                     Beim Punkt d) ziehen Sie bitte noch zusätzlich eine Haushaltsersparnis in Höhe von 196,20 Euro monatlich ab.)

                     a) Krankheitskosten (inkl. Zahnersatz)                                                                               730
                     b) Begräbniskosten (soweit im Nachlass nicht gedeckt)                                                                731
                     c) Kosten für Kinderbetreuung (in der Regel nur bei Alleinerziehern)                                                 732
                     d) Kurkosten                                                                                                         734
                     e) Andere außergewöhnliche Belastungen                                                                               735
                     Außergewöhnliche Belastungen (ohne Selbstbehalt)
                     a) Katastrophenschäden
                        (Bitte geben Sie den Betrag der Aufwendungen abzüglich erhaltener Ersätze oder Vergütungen an.)                   475
                     b) Summe der Unterhaltsleistungen für folgende unterhaltsberechtigte Kinder, die sich ständig im
                        Ausland aufhalten und für die kein Kinder- oder Unterhaltsabsetzbetrag zusteht.
                    Geburtsdatum         Anz. d.     Geburtsdatum       Anz. d.      Geburtsdatum         Anz. d.
                     (TTMMJJ)            Monate         (TTMMJJ)        Monate         (TTMMJJ)          Monate      59
                                                                                                                                          753
                Außergewöhnliche Belastungen bei Behinderung                                                                  Eigene                     Behinderung
                Die Angaben zum (Ehe)Partner sind nur dann auszufüllen, wenn Ihnen der                                      Behinderung                des (Ehe)Partners
                Alleinverdienerabsetzbetrag zusteht.
                Grad der Behinderung (Mit einer Eintragung wird der pauschale Freibetrag
                beantragt. Tatsächliche Kosten bitte unter Kennzahl 439 , 418 eintragen.)                                                      %                              %
                Der pauschale Freibetrag für Diätverpflegung wird beansprucht wegen
                Z: Zuckerkrankheit, Tuberkulose, Zöliakie oder Aids                                                     Z                               Z
                G: Gallen-, Leber- oder Nierenkrankheit                                                                 G                               G
                M: Magenkrankheit oder andere innere Erkrankung                                                         M                               M

                Eine pflegebedingte Geldleistung (Blindenbeihilfe, Pflegegeld) wird bezogen                      von            bis           03 von            bis          03

                Der pauschale Freibetrag für ein Kraftfahrzeug wegen Behinderung wird beansprucht                      ja                              ja
                                                                                                                            Betrag                          Betrag
                Nachgewiesene Taxikosten (bei einer mindestens 50%igen Gehbehinderung)                           435                                 436
                Nicht regelmäßige Ausgaben für Hilfsmittel (zB Rollstuhl, Hörgerät, Blindenhilfsmittel)
                sowie Kosten der Heilbehandlung
                Allfällige Kostenersätze bitte abziehen!                                                         476                                 417
                Anstelle der vorgenannten pauschalen Freibeträge werden tatsächliche Kosten
                geltend gemacht (zB Kosten für ein Alters- oder Pflegeheim) in Höhe von
                Allfällige pflegebedingte Geldleistungen bitte abziehen!                                         439                                 418
                    Ich besitze auf Grund meiner Verfolgung in der Zeit von 1938 bis 1945 einen Opferausweis und/oder eine Amtsbescheinigung.
                Außergewöhnliche Belastungen für Kinder
                Bitte nur dann ausfüllen, wenn Ihnen der Kinderabsetzbetrag oder der Unterhaltsabsetzbetrag zusteht bzw. bei auswärtiger Berufsausbildung.
                                                                                         Geburtsdatum (TTMMJJ)               Geburtsdatum (TTMMJJ)          Geburtsdatum (TTMMJJ)
                Versicherungsnummer/Geburtsdatum
                (Bitte jedenfalls das Geburtsdatum ausfüllen)
                Kostentragung in Prozent (Bitte nur ausfüllen, wenn Sie
                die Kosten nicht zur Gänze tragen.)                                                       %                                    %                              %
                Auswärtige Berufsausbildung (ohne Selbstbehalt)
                                                                               von           bis          03 von           bis                03 von           bis           03
                                                                                Postleitzahl                  Postleitzahl                        Postleitzahl
                Ausbildungsort (bitte nur Postleitzahl eintragen) , Internat                        Internat                            Internat                       Internat
                Angaben zur Behinderung
                Grad der Behinderung (Mit einer Eintragung wird der
                pauschale Freibetrag beantragt. Tatsächliche Kosten
                bitte unter den Kennzahlen 429 , 729 , 829 eintragen.)                                    %                                    %                              %
                Der pauschale Freibetrag für Diätverpflegung
                wird beansprucht wegen
                (Nur wenn keine erhöhte Familienbeihilfe bezogen wird)
E 1 - Seite 7




                Z: Zuckerkrankheit, Tuberkulose, Zöliakie oder Aids                  Z                                  Z                               Z
                G: Gallen-, Leber- oder Nierenkrankheit                              G                                  G                               G
                M: Magenkrankheit oder andere innere Erkrankung                      M                                  M                               M




                                                                                                                                                                                    91
                     Erhöhte Familienbeihilfe wird bezogen (Mit der Ein-
                     tragung wird der pauschale Freibetrag von 262 Euro be-
                     antragt. Tatsächliche Kosten bitte unter den Kenn-
                     zahlen 429, 729, 829 eintragen.)                        von          bis           03 von                bis    03 von          bis         03
                     Eine pflegebedingte Geldleistung wird monatlich bezogen  Betrag                        Betrag                       Betrag
                     in Höhe von


                     für den Zeitraum                                            von      bis           03 von                bis    03 von          bis         03
                     Schulgeld für eine Sonder(Pflege)Schule bzw. Behinderten-         Betrag                              Betrag                 Betrag
                     werkstätte (Nur bei Bezug erhöhter Familienbeihilfe)        428                          728                         828
                     Nicht regelmäßige Ausgaben für Hilfsmittel (zB Roll-
                     stuhl, Hörgerät, Blindenhilfsmittel) sowie Kosten der
                     Heilbehandlung
                     Allfällige Kostenersätze bitte abziehen!                    471                          771                         871
                     Anstelle der vorgenannten (Pausch)Beträge werden
                     tatsächliche Kosten geltend gemacht in Höhe von
                     Allfällige pflegebedingte Geldleistungen bitte abziehen!    429                          729                         829

                     Nur auszufüllen, wenn Sie keinen oder einen niedrigeren Freibetragsbescheid wollen! Ein niedrigerer Freibetrag kann auch dann
                     berücksichtigt werden, wenn Sie die Erklärung auf der Mitteilung zur Vorlage beim Arbeitgeber ausfüllen.


                      X Ich wünsche keinen Freibetragsbescheid        60
                                                                                                                                          in Höhe von jährlich
                         Ich beantrage einen betragsmäßg niedrigeren Freibetragsbescheid        60                                  449

                     Bitte schließen Sie dieser Erklärung auch die in Ihrem Fall erforderlichen Erklärungsbeilagen an
                     (zB E 1a, E 1b, E 1c, E 106b, E 25)
                     Gleichzeitig mit der Einkommensteuererklärung E 1 übermittle ich folgende Beilagen zur Geltendmachung von Prämien:

                                               Beilage zur Einkommensteuer-/Körperschaftsteuer- oder Feststellungserklärung zur Geltendmachung einer
                               E 108c          Forschungsprämie, Bildungsprämie oder Lehrlingsausbildungsprämie
                                               Beilage zur Einkommensteuer-/Körperschaftsteuer- oder Feststellungserklärung zur Geltendmachung einer
                               E 108d/j        befristeten Sonderprämie
                                               Beilage zur Einkommensteuer-/Körperschaftsteuer- oder Feststellungserklärung zur Geltendmachnung einer
                               E 108e          Investitionszuwachsprämie




                     Ich versichere, dass ich die Angaben nach bestem Wissen und Gewissen richtig und vollständig gemacht habe. Mir ist bekannt, dass die
                     Angaben überprüft werden und dass unrichtige oder unvollständige Angaben strafbar sind. Sollte ich nachträglich erkennen, dass die
                     vorstehende Erklärung unrichtig oder unvollständig ist, so werde ich meiner Anzeigepflicht gemäß § 139 Bundesabgabenordnung
                     unverzüglich nachkommen.


                     Steuerliche Vertretung (Name, Anschrift, Telefonnummer)
                     Steuerberatungs GmbH
     E 1 - Seite 8




                     1010 Wien, Vertreterweg 1
                     01/23456
                                                                                                     27.04.2004
                                                                                                     Datum, Unterschrift
                                                                                                                               Steuerberatung
92
                                           Beilage zur Einkommensteuererklärung E 1 für Einzelunternehmer
 FINANZOnline - Hotline: 0810 / 22 11 00




                                           (betriebliche Einkünfte) für 2003
                                           Wird ohne nähere Bezeichnung auf gesetzliche Bestimmungen verwiesen, ist darunter das Einkommensteuergesetz 1988 (EStG 1988) zu verstehen.
                                           Beachten Sie bitte die Ausfüllhilfe zu dieser Beilage (Formular E 2).
                                                 Einkünfte aus Land- und Forstwirtschaft,
                                                 soferne keine Pauschalierung in Anspruch genommen wird

                                                 Einkünfte aus selbständiger Arbeit
                                              Einkünfte aus Gewerbebetrieb,
                                            X soferne keine Vollpauschalierung für Gastwirte oder Lebensmitteleinzel- oder Gemischtwarenhändler in Anspruch genommen wird

                                           Bitte pro Betrieb und Wirtschaftsjahr eine Beilage ausfüllen!         1                                        Zutreffendes bitte ankreuzen            !
                                            Familien- und Vorname                                                                   Steuernummer                                  Referat
                                           DRILLICH Hans                                                                                765 / 4321                                  1
                                            Postleitzahl                Betriebsanschrift (Ort, Straße, Platz, Haus-Nr., Tür-Nr.)
                                           1120                         Handwerksweg 21
                                            Staat (nur ausfüllen, wenn nicht Österreich)                                                                         Bitte unbedingt ausfüllen!
                                                                                                                                                              Branchenkennzahl lt. Formular E 2
                                            Bilanzierung gemäß                                                                                                                3 43
                                                                        Einnahmen-Ausgaben-                          Basispauschalierung
                                                § 4 Abs. 1  2       X Rechnung gemäß § 4 Abs. 3                      gemäß § 17 Abs. 1                        431           Mischbetrieb
                                                                        USt-Bruttosystem
                                                                                                                     Künstler-/Schriftsteller- oder
                                                §5                  X USt-Nettosystem                                Handelsvertreter-Pauschalierung               Sonstige Pauschalierung

                                            Dauer des Gewinnermittlungszeitraumes, nur wenn kürzer als 12 Monate (Anzahl der Monate)        4                    Beträge in Euro und Cent

                                                Wechsel der Gewinnermittlungsart                             Höhe des
                                                (§ 4 Abs. 10) wurde vorgenommen                              Übergangsgewinnes/-verlustes              9010
                                                                                                             Höhe des Veräußerungsgewinnes/
                                                (Teil-)Betrieb wurde veräußert oder aufgegeben               -verlustes (vor allfälligem Freibetrag)   9020
                                                Ein Antrag gemäß § 24 Abs. 6 wird gestellt                   Höhe eines auszuscheidenden
                                                (Gebäudebegünstigung bei Betriebsaufgabe)                    Auslandsgewinnes/-verlustes         5     9030
                                                Ich beanspruche eine Entlastung von der Doppelbe- 6               Im Veranlagungszeitraum erfolgte
                                                steuerung auf Grund der Verordnung BGBl. II Nr. 474/2002.         eine Umgründung

                                           1. Gewinnermittlung           7
                                               Grundsätzlich sind Erträge/Betriebseinnahmen und Aufwendungen/Betriebsausgaben ohne Vorzeichen anzugeben. Nur wenn sich bei
                                               einer Kennzahl ein negativer Wert ergibt, ist ein negatives Vorzeichen ("-") anzugeben.

                                            Erträge/Betriebseinnahmen                                                                                            Beträge in Euro und Cent

                                            Erlöse (Waren-/Leistungserlöse) ohne § 109a
                                            EKR 40-44                                                                                            8     9040                   38.000,00
                                            Betriebseinnahmen/Erträge, für die Mitteilungen gemäß § 109a ausgestellt wurden
                                            EKR 40-44                                                                                            9     9050
                                            Anlagenerlöse/Entnahmewerte von Anlagevermögen
                                            EKR 460-462 vor allfälliger Auflösung auf 463-465 bzw. 783                                          10     9060                     2.000,00
                                            Nur für Bilanzierer: Aktivierte Eigenleistungen
                                            EKR 458-459                                                                                         11     9070
                                            Nur für Bilanzierer: Bestandsveränderungen
                                            EKR 450-457                                                                                         12     9080
                                            Übrige Erträge/Betriebseinnahmen (inkl. Finanzerträge)
                                            Saldo                                                                                               13     9090
                                            Summe der Erträge/Betriebseinnahmen (muss nicht ausgefüllt werden)                                                                40.000,00
                                            Aufwendungen/Betriebsausgaben
www.bmf.gv.at




                                            Waren, Rohstoffe, Hilfsstoffe
                                            EKR 500-539, 580                                                                                    14     9100
                                            Beigestelltes Personal (Fremdpersonal) und Fremdleistungen
                                            EKR 570-579, 581, 750-753                                                                           15     9110                     1.000,00
                                            Personalaufwand ("eigenes Personal")
                                            EKR 60-68                                                                                           16     9120
                                            Abschreibungen auf das Anlagevermögen (z. B. AfA, geringwertige Wirtschaftsgüter)
                                            EKR 700-708                                                                                         17     9130                        950,00
                                            Nur für Bilanzierer: Abschreibungen vom Umlaufvermögen, soweit diese die im Unternehmen
                                            üblichen Abschreibungen übersteigen - EKR 709 - und Wertberichtigungen zu Forderungen   18                 9140
                                            Instandhaltungen (Erhaltungsaufwand) für Gebäude
                                            EKR 72                                                                                              19     9150
                                           E 1a Bundesministerium für Finanzen
                                                                                                                                                                                                      93
                      Reise- und Fahrtspesen inkl. Kilometergeld und Diäten (ohne tatsächliche Kfz-Kosten)
                      EKR 734-737                                                                                   20   9160                       650,00
                      Tatsächliche Kfz-Kosten (ohne AfA, Leasing und Kilometergeld)
                      EKR 732-733                                                                                   21   9170
                      Miet- und Pachtaufwand, Leasing
                      EKR 740-743, 744-747                                                                          22   9180                    1.450,00
                      Provisionen an Dritte, Lizenzgebühren
                      EKR 754-757, 748-749                                                                          23   9190
                      Werbe- und Repräsentationsaufwendungen, Spenden, Trinkgelder
                      EKR 765-769                                                                                   24   9200                       400,00
                      Buchwert abgegangener Anlagen
                      EKR 782                                                                                       25   9210
                      Zinsen und ähnliche Aufwendungen
                      EKR 828-834                                                                                   26   9220
                      Übrige und/oder pauschale Aufwendungen/Betriebsausgaben
                      Saldo                                                                                         27   9230                    4.550,00

                      Summe der Aufwendungen/Betriebsausgaben (muss nicht ausgefüllt werden)                                                     9.000,00
                      Gewinn/Verlust (Sofern keine Korrekturen nach Punkt 2 erfolgen, bitte diesen Betrag im Formular E 1 -
                      gegebenenfalls unter Berücksichtigung des unter Kennzahl 9030 auszuscheidenden Auslands-
                      gewinnes/-verlustes - bei der entsprechenden Einkunftsart berücksichtigen)                                                31.000,00

                      2. Korrekturen des Gewinnes/Verlustes (Steuerliche Mehr-/Weniger-Rechnung) 28
                        Zur Ermittlung des steuerlichen Gewinnes/Verlustes ist der unter Punkt 1 ermittelte Gewinn/Verlust - soweit er nicht bereits nach
                        steuerlichen Vorschriften ermittelt wurde - durch die nachfolgenden Zu- bzw. Abrechnungen zu korrigieren. Sind in der Kennzahl 9090 end-
                        besteuerungsfähige inländische und/oder ausländische Kapitalerträge enthalten, sind diese unter Kennzahl 9290 auszuscheiden.
                        Gewinnerhöhende Korrekturen sind ohne Vorzeichen, gewinnmindernde Korrekturen sind mit negativem Vorzeichen ("-") anzugeben.

                      Korrekturen zu Abschreibungen auf das Anlagevermögen (z. B. AfA, geringwertige Wirtschafts-
                      güter, EKR 700-708) - Kennzahl 9130                                                         29     9240
                      Korrekturen zu Abschreibungen vom Umlaufvermögen, soweit diese die im Unternehmen üblichen
                      Abschreibungen übersteigen und Wertberichtigungen zu Forderungen - Kennzahl 9140         30        9250
                      Korrekturen zu tatsächliche Kfz-Kosten (ohne AfA, Leasing und Kilometergeld
                      EKR 732-733) - Kennzahl 9170                                                                  31   9260
                      Korrekturen zu Miet- und Pachtaufwand, Leasing (EKR 740-743, 744-747) - Kennzahl 9180         32   9270
                      Korrekturen zu Werbe- und Repräsentationsaufwendungen, Spenden, Trinkgelder
                      (EKR 765-769) - Kennzahl 9200                                                                 33   9280
                      Sonstige Änderungen [inklusive Abzug endbesteuerungsfähiger inländischer und/oder dem
                      besonderen Steuersatz (25%) unterliegender ausländischer Kapitalerträge] - Saldo              34   9290
                      Ergebnis der Korrekturen des Gewinnes/Verlustes (der steuerlichen Mehr-/Weniger-Rechnung)
                      (muss nicht ausgefüllt werden)

                      Steuerlicher Gewinn/Verlust (Bitte diesen Betrag - gegebenenfalls unter Berücksichtigung des
                      unter Kennzahl 9030 auszuscheidenden Auslandsgewinnes/-verlustes - im Formular E 1 bei der
                      entsprechenden Einkunftsart berücksichtigen)                                                                             31.000,00
                      3. Bilanzposten (NUR für Bilanzierer gemäß §§ 4 Abs. 1 oder 5)
                      Privatentnahmen (abzüglich Privateinlagen)
                      EKR 96 (Bitte bei negativen Beträgen unbedingt das Vorzeichen angeben!)                       35   9300
                      Grund und Boden
                      EKR 020-022                                                                                   36   9310
                      Gebäude auf eigenem Grund
                      EKR 030, 031                                                                                  37   9320
                      Finanzanlagen
                      EKR 08-09                                                                                     38   9330
                      Vorräte
                      EKR 100-199                                                                                   39   9340
                      Forderungen aus Lieferungen und Leistungen
                      EKR 20-21                                                                                     40   9350
                      Sonstige Rückstellungen (ohne Rückstellungen für Abfertigungen, Pensionen oder Steuern)
                      EKR 304-309                                                                                   41   9360
                      Verbindlichkeiten gegenüber Kreditinstituten und Finanzinstituten
                      EKR 311-319                                                                                   42   9370
     E 1a - Seite 2




                      Steuerliche Vertretung (Name, Anschrift, Telefonnummer)
                      Steuerberatungs GmbH
                      1010 Wien, Vertreterweg 1, 01/23456                                     27.04.2004
                                                                                              Datum, Unterschrift
                                                                                                                         Steuerberatung
94
 FINANZOnline - Hotline: 0810 / 22 11 00




                                           Beilage zur Einkommensteuererklärung E 1 für Einkünfte aus Vermietung
                                           und Verpachtung von Grundstücken und Gebäuden für 2003
                                           Bitte pro Einkunftsquelle eine Beilage ausfüllen!
                                           Wird ohne nähere Bezeichnung auf gesetzliche Bestimmungen verwiesen, ist darunter das Einkommensteuergesetz 1988 (EStG 1988) zu verstehen.
                                                                                                                                                         Zutreffendes bitte ankreuzen        !
                                            Familien- und Vorname                                                              Steuernummer                                      Referat


                                           DRILLICH Hans                                                                             765 / 4321                                   1

                                                                                                    Einheitswert-Aktenzeichen (EWAZ)                              Postleitzahl
                                               Bebautes                     Unbebautes
                                               Grundstück 1                 Grundstück       1      12-3-4567                                                      1130
                                            Lageadresse (Ort, Straße, Platz, Haus-Nr., Stiege, Tür-Nr.)                                       Staat (nur ausfüllen, wenn nicht Österreich)
                                           Wien, Mietplatz 4/1

                                            Erwerb der Einkunftsquelle:                                                                                       Beträge in Euro und Cent

                                            Die Einkunftsquelle wurde im Erklärungsjahr entgeltlich erworben                                  2
                                            Bitte geben Sie hier die Höhe der Anschaffungskosten des Gebäudes (ohne Grundanteil) an.               9410
                                                Die Einkunftsquelle wurde im Erklärungsjahr unentgeltlich erworben
                                                Ich stelle einen Antrag auf AfA-Bemessung von den fiktiven Anschaffungskosten                 3

                                            Übertragung der Einkunftsquelle:

                                            Die Einkunftsquelle wurde im Erklärungsjahr zur Gänze oder teilweise veräußert                    4
                                            Bitte geben Sie hier den Verkaufspreis (ohne Umsatzsteuer) an.                                         9420
                                                Die Einkunftsquelle wurde im Erklärungsjahr zur Gänze oder teilweise verschenkt.              5

                                            Im Jahr 2003 sind Aufwendungen gemäß § 28 Abs. 2, 3 oder 4 angefallen:

                                                Ich stelle einen Antrag auf Verteilung von Aufwendungen gemäß § 28 Abs. 2                     6
                                                Höhe der insgesamt zu verteilenden Instandhaltungs- und/oder Instandsetzungskosten
                                                (Instandsetzungskosten bei Wohngebäuden müssen zwingend verteilt werden)                           9430
                                                Ich stelle einen Antrag auf Verteilung von Aufwendungen gemäß § 28 Abs. 3                     7
                                                Höhe der insgesamt zu verteilenden Herstellungsaufwendungen                                        9440

                                                Verteilungszeitraum (mindestens 10, höchstens 15 Jahre)                      Anzahl der Jahre
                                                Ich stelle einen Antrag auf Verteilung von Aufwendungen gemäß § 28 Abs. 4                     8
                                                Höhe der insgesamt zu verteilenden Aufwendungen gemäß § 10 Mietrechtsgesetz                        9450
                                            Einnahmen:       9    10
                                                                                                                                                   9460                       5.000,00
                                            Werbungskosten: 9
                                                Absetzbare Aufwendungen nach § 28 Abs. 2 (Zehntelabsetzungen)                                 6    9470
                                                 Absetzbare Aufwendungen nach § 28 Abs. 3 (Zehntel-/Fünfzehntelabsetzungen)                   7    9480
                                                 Absetzbare Aufwendungen nach § 28 Abs. 4 (Zehntelabsetzungen)                                8    9490
                                                 Absetzung für Abnutzung (AfA)                                                                11   9500                       1.000,00

                                                 Fremdfinanzierungskosten                                                                     12   9510                       1.800,00
www.bmf.gv.at




                                                 Sofort abgesetzte Instandhaltungs- und/oder Instandsetzungskosten                                 9520
                                                 Übrige Werbungskosten                                                                             9530                            20,00
                                            Einnahmenüberschuss/Verlust
                                            Bitte diesen Betrag im Formular E 1 bei der Einkunftsart Vermietung und Verpachtung berücksichtigen!                              2.180,00

                                            Steuerliche Vertretung (Name, Anschrift, Telefonnummer)
                                           Steuerberatungs GmbH
                                           1010 Wien, Vertreterweg 1
                                           01/23456
                                                                                                                        27.04.2004                 Steuerberatung
                                                                                                                        Datum, Unterschrift

                                           E 1b Bundesministerium für Finanzen

                                                                                                                                                                                                 95
                      ERLÄUTERUNGEN:
                      1 Besteht die Einkunftsquelle       aus einem einzigen Grundstück (zB Eigentumswohnung, Mietwohngrundstück), führen Sie bitte
                           Einheitswert-Aktenzeichen (EAWZ), Postleitzahl und Lageadresse an. Werden mehrere Grundstücke im Rahmen einer einzigen
                           Einkunftsquelle vermietet (zB Vermietung mehrerer Wohnungen im selben Gebäude an einen Mieter), genügt die Angabe eines einzigen
                           Grundstückes. Führen Sie bitte in diesem Fall in den Folgejahren bei unveränderten Verhältnissen immer dasselbe Grundstück an.
                      2    Besteht die Einkunftsquelle aus einem einzigen im Erklärungsjahr gekauften Gebäude, geben Sie bitte unter Kennzahl 9410 die
                           Anschaffungskosten (den Kaufpreis) für das Gebäude ohne den auf den Grund und Boden entfallenden Anteil an. In der Regel entfallen
                           zumindest 20% des Gesamtkaufpreises auf den Grund und Boden (vgl. Rz 6447 der Einkommensteuerrichtlinien 2000, EStR 2000). Die
                           Anschaffungskosten stellen die AfA-Bemessungsgrundlage dar. Gesetzlich ist - ohne Nachweis der Nutzungsdauer - ein AfA-Satz von
                           1,5% anzusetzen. Bei Gebäuden, die vor 1915 erbaut wurden, kann ein AfA-Satz von 2% angesetzt werden (vgl. Rz 6444 der EStR
                           2000). Im Fall einer "gemischten Schenkung" mit überwiegendem Schenkungscharakter (siehe dazu unter Punkt 3) liegt ein
                           unentgeltlicher Erwerb vor, sodass keine Eintragung unter Kennzahl 9410 vorzunehmen ist.
                      3    Ein unentgeltlicher Erwerb liegt insbesondere bei Erwerb durch Schenkung, gegen Unterhaltsrente, durch Erbschaft, Legat, Schenkung
                           auf den Todesfall und als Abfindung eines Plichtteilanspruches vor. Im Fall einer "gemischten Schenkung" ist von einem unentgeltlichen
                           Erwerb auszugehen, wenn der Kaufpreis des Gebäudes nicht mindestens die Hälfte seines Verkehrswertes beträgt. Im Fall eines
                           unentgeltlichen Erwerbs ist die AfA wahlweise vom zuletzt festgesetzten Einheitswert (inklusive Grundanteil) oder - wenn dies beantragt
                           wird - von den fiktiven Anschaffungskosten (nur das Gebäude ohne Grundanteil) zu bemessen. Bei unentgeltlichem Erwerb unter
                           Lebenden gehen Zehntel-/Fünfzehntelabsetzungen nach § 28 Abs. 2 und 3 EStG 1988 des Rechtsvorgängers (unabhängig davon,
                           welche AfA-Bemessungsgrundlage gewählt wird) verloren. Bei Erwerben von Todes wegen können diese Absetzungen fortgesetzt
                           werden, wenn die AfA auf Basis des Einheitswertes bemessen wird. Siehe dazu auch Rz 6434 ff. der EStR 2000.
                      4, 5   Wird ein Gebäude unter Lebenden entgeltlich (zB durch Verkauf) oder unentgeltlich (zB durch Schenkung) übertragen und wurden
                           innerhalb von fünfzehn Jahren vor der Übertragung vom Steuerpflichtigen oder bei Erwerb von Todes wegen von seinem
                           Rechtsvorgänger Herstellungsaufwendungen in Teilbeträgen gemäß § 28 Abs. 3 EStG 1988 abgesetzt, dann sind im Jahr der
                           Übertragung zusätzlich besondere Einkünfte aus Vermietung und Verpachtung unter der Kennzahl 9460 anzusetzen (siehe dazu Rz
                           6511 der EStR 2000). Wenn seit dem ersten Jahr, für das Herstellungsaufwendungen gemäß § 28 Abs. 3 EStG 1988 in Teilbeträgen
                           abgesetzt wurden, mindestens weitere sechs Jahre verstrichen sind, können die besonderen Einkünfte auf drei Jahre verteilt angesetzt
                           werden. Die 2003 auszuscheidenden Einkünfte (2/3) sind in der Erklärung E 1 unter der Kennzahl 378 einzutragen.
                      6    Gemäß § 28 Abs. 2 EStG 1988 können über Antrag Aufwendungen für nicht regelmäßig jährlich anfallende Instandhaltungsarbeiten
                           gleichmäßig auf zehn Jahre verteilt werden. Instandhaltungsaufwand liegt vor, wenn lediglich unwesentliche Gebäudeteile ausgetauscht
                           werden oder wenn es zu keiner wesentlichen Erhöhung des Nutzwertes oder der Nutzungsdauer kommt (vgl. Rz 6467 ff. der EStR 2000).
                           Instandsetzungsaufwendungen sind (nach allfälliger Kürzung um entsprechend gewidmete steuerfreie Subventionen aus öffentlichen
                           Mitteln) bei Wohngebäuden zwingend auf zehn Jahre verteilt abzusetzen. Bei Gebäuden, die nicht Wohnzwecken dienen (zB betrieblich
                           genutzte Gebäude), können nicht regelmäßige Instandsetzungsaufwendungen wahlweise sofort oder auf zehn Jahre verteilt abgesetzt
                           werden. Instandsetzungsaufwendungen sind jene Aufwendungen, die nicht zu den Anschaffungs- oder Herstellungskosten gehören und
                           allein oder zusammen mit Herstellungsaufwand den Nutzungswert des Gebäudes wesentlich erhöhen oder seine Nutzungsdauer
                           wesentlich verlängern (siehe dazu auch Rz 6450 ff. der EStR 2000).
                           Bei einer Verteilung der Instandhaltungsaufwendungen bzw. Instandsetzungsaufwendungen ist unter der Kennzahl 9430 die
                           Gesamthöhe der 2003 angefallenen Instandhaltungsaufwendungen (Instandsetzungsaufwendungen) anzugeben.
                           Unter der Kennzahl 9470 sind sämtliche auf 2003 entfallenden Instandhaltungs- und/oder Instandsetzungszehntel anzusetzen, somit -
                           bei Instandhaltungsaufwendungen oder Instandsetzungsaufwendungen in anderen als Wohngebäuden - auch solche aus einer in
                           Vorjahren erfolgten Antragstellung auf Verteilung.
                           Sofort abgesetzte Instandhaltungsaufwendungen oder Instandsetzungsaufwendungen (bei anderen als Wohngebäuden) sind unter
                           Kennzahl 9520 einzutragen.

                      7    Gemäß § 28 Abs. 3 EStG 1988 sind folgende Aufwendungen, soweit sie Herstellungsaufwand (vgl. dazu Rz 6476 der EStR 2000)
                           darstellen, über Antrag gleichmäßig auf fünfzehn Jahre verteilt abzusetzen:
                           1. Aufwendungen im Sinne der §§ 3 bis 5 des Mietrechtsgesetzes in Gebäuden, die den Bestimmungen des Mietrechtsgesetzes über
                              die Verwendung der Hauptmietzinse unterliegen.
                           2. Aufwendungen für Sanierungsmaßnahmen, wenn die Zusage für eine Förderung nach dem Wohnhaussanierungsgesetz, dem
                              Startwohnungsgesetz oder den landesgesetzlichen Vorschriften über die Förderung der Wohnhaussanierung vorliegt.
                           3. Aufwendungen auf Grund des Denkmalschutzgesetzes.
                           Werden zur Finanzierung dieser Herstellungsaufwendungen gesetzlich vorgesehene Mieterhöhungen vorgenommen, kann der
                           Herstellungsaufwand gleichmäßig auf die Laufzeit der erhöhten Mieten, mindestens aber gleichmäßig auf zehn Jahre verteilt werden.
                           Führen Sie bitte den Verteilungszeitraum an.
                           Bei einer Antragstellung auf Verteilung ist unter der Kennzahl 9440 die Gesamthöhe der 2003 angefallenen Herstellungsaufwendungen
                           anzugeben.
                           Unter der Kennzahl 9480 sind sämtliche auf 2003 entfallenden Herstellungszehntel/fünfzehntel, somit auch solche aus einer in
                           Vorjahren erfolgten Antragstellung auf Verteilung einzutragen.
                           Herstellungsaufwendungen gemäß § 28 Abs. 3 EStG 1988, die nicht in Zehntel-/Fünfzehntel abgesetzt werden, sind im Rahmen der AfA
                           unter Kennzahl 9500 zu berücksichtigen.

                      8    Gemäß § 28 Abs. 4 EStG 1988 kann der Ersatz von Aufwendungen gemäß § 10 des Mietrechtsgesetzes über Antrag gleichmäßig auf
                           zehn Jahre verteilt werden. Bei einer Antragstellung auf Verteilung ist unter der Kennzahl 9450 die Gesamthöhe der 2003 angefallenen
                           Aufwendungen einzutragen. Unter der Kennzahl 9490 sind sämtliche auf 2003 entfallenden Zehntelbeträge, somit auch solche aus einer
                           in Vorjahren erfolgten Antragstellung einzutragen.

                      9    Geben Sie Einnahmen und Werbungskosten jeweils ohne Vorzeichen an. Einnahmenrückzahlungen sind unter Kennzahl 9530,
                           Werbungskostenrückzahlungen unter Kennzahl 9460 anzugeben.

                      10   Unter Kennzahl 9460 sind sämtliche Einnahmen aus Vermietung und Verpachtung der Einkunftsquelle in einer Summe anzuführen. Zu
                           den Einnahmen gehören insbesondere auch Ablösen, Mietzinsvorauszahlungen oder weiterverrechnete Betriebskosten (diese können
                           bei mietengeschützten Objekten, die der Verrechnungspflicht nach § 21 Mietrechtsgesetz unterliegen, auch als durchlaufende Posten
                           behandelt werden, vgl. Rz 6401 ff. der EStR 2000).

                      11   Unter Kennzahl 9500 ist der auf 2003 entfallende Betrag an Absetzung für Abnutzung (AfA für Gebäude und Einrichtung) einzutragen.
                           Zur AfA-Bemessungsgrundlage und zum AfA-Satz siehe § 16 Abs. 1 Z 8 EStG 1988 sowie Rz 6422 ff. der EStR 2000.

                      12   Unter Kennzahl 9510 sind die auf 2003 entfallenden absetzbaren Fremdfinanzierungskosten (insbesondere Zinsen, Kreditgebühren)
     E 1b - Seite 2




                           einzutragen. Kredittilgungen (Annuitäten) stellen keine Werbungskosten dar.




96
XVI. INDEX

A

                   A
                                                       C
abatement of tax
access to files
account statement
accounting, business
acquisition costs
                                             74
                                             12
                                         15, 22
                                             23
                             56, 57, 58, 59, 68
                                                       capital duty
                                                       carpet

                                                       cash accounting
                                                       cash book
                                                                           C
                                                       carry-forward of losses
                                                                                                  16, 17
                                                                                                  54, 55
                                                                                                  27, 28
                                                                                                  29, 30
                                                                                                       25
Act on Promotion of New Businesses           16        cash receipts basis of accounting               44
additional food and                                    categories of income                            28
drink expenses                       42, 59, 60        Central Liaison Office                          48
address for service                          12        chamber contribution                       10, 21
administration of accounts                   14        chartered accountants             12, 58, 68, 69
advance payments, taxation of                38        child tax credit                                31
advertising levy                             51        church contributions                            28
agricultural and                                       civil engineers                                 68
forestry enterprises             28, 32, 44, 58        coal levy                                       51
alimony tax credit                           31        commercial register               16, 17, 23, 24
amendment of assessments                               commission fee                         53, 55, 56
increasing taxpayer's liability              72        commission fee for
annual summary                               15        intermediary services             see commission fee
annual tax return                            18        companies                     16, 23, 24, 28, 31
antiques                                     54        competent tax office
appeal                                       72        for businesses                17, 20, 21, 31, 35
- time limit                                 72        competent tax office
- notice                                     72        for individuals                                 21
application for devolution                   12        consideration         21, 36, 37, 40, 44, 45, 51
application for retitutio in integrum        12        consulting fees                            55, 64
arrears                                      15        contract work                                   36
artist                       27, 28, 38, 70, 71        corporation tax                                 34
author's remuneration                        39        - guidelines                                     11
authority to act in cash matters             12        - minimum corporation tax                       34
authority to act in money matters            12        - notice of assessment                          21
                                                       - prepayment                                    21
B

                    B
                                                       - rate                                     15, 34
balance sheet          see double-entry book-keeping   - return                                   20, 35
balls                                            54    - time limit for filing return                  21
basis for depreciation                           56    costs for installation                          56
birthday party                              54, 55     costs for laying the foundations                56
book proof                                       44    country of origin principle                     46
bookkeeping requirements                         23    court fees                                 16, 17
books, supply of                                 38    credit                    14, 21, 22, 33, 45, 74
box-type van                                     43    credit balance                             14, 15
breakfast                              42, 60, 61      cross-border worker tax credit                  31
bribes                                           55    customs duties                             31, 56
buildings                        28, 39, 55, 58




                                                                          D
buildings used for business purposes             58    D
business expenses           26, 32, 35, 43, 53         data carriers                                   25
business income                        16, 28, 32      date of supply                              40, 41
business receipts                      26, 32, 62      declaration of new business                 17, 75     97
XVI. INDEX

             D

                                D
                                                                    foodstuffs, supply of                        38, 41
             deduction of                                           foreign travel                                   61
             input tax 14, 36, 37, 38, 39, 59, 63, 68, 69           forms                                        11, 75
             deduction of losses                      12, 29        fuel                                         43, 64
             dependents                                   53        full lump sum taxation          see lump sum taxation

             depreciation             26, 55, 64, 67, 69, 74        full year's depreciation              see depreciation

             - full year's depreciation                   57
                                                                    G
             - one-half year's depreciation
             depreciation rate
             determination of profits
             disability, expenses for
             disposal of refuse
             doctor of human medicine
                                                          57
                                                          56
                                                  23, 25, 64
                                                          30
                                                          38
                                                          68
                                                                    gambling winnings
                                                                    garage

                                                                    glasses
                                                                    goods
                                                                                     G
                                                                    general tax credit
                                                                                                               29
                                                                                                               43
                                                                                                               31
                                                                                                               54
                                                                               40, 46, 55, 64, 65, 66, 67, 68, 69
             documentation                                53        goodwill                                   58
             domestic travel                              60        grace period                               22
             double-entry                                           grocers                     21, 24, 63, 70 71
             book-keeping                 23, 24, 25, 34, 64        gross method                           26, 70
             double taxation agreements                   28
                                                                    H
             driving school
             due dates

             E
                                                      43, 59
                                                          20        hearing aid

                                                                                     H
                                                                    holder of a general power of attorney
                                                                    holder of a specific power of attorney
                                                                                                                      54
                                                                                                                      14
                                                                                                                      14
             electricity levy
             employee tax credit

             enforcement action
                                 E
             employer's contribution 10, 16, 17, 21, 65, 67
                                                              51
                                                              31

                                                         73, 74
                                                                    home office
                                                                    household, expenses for
                                                                    hunting
                                                                                                                      54
                                                                                                                      54
                                                                                                                      54




                                                                                     I
             enforcement officer                              69    I
             entertainment expenses                 39, 54, 55      import VAT                     39, 46, 51, 68
             entrepreneur (small)         12, 13, 36, 38, 49        importation of goods                       36
             establishment of business              13, 54, 68      incidental employment costs        64, 65, 66
             execution                                        73    incidental expenses                37, 59, 61
             exempt supplies       see value added tax exemptions   income                                     28
             expenses for disease                             30    income tax                             21, 28
             expenses for business meals                 39, 55     - assessment                   26, 28, 31, 32
             export proof                                     44    - guidelines                           11, 70
             export supplies of goods                    36, 43     - notice of assessment                     21
             extension of time for payment                    73    - prepayment                       21, 22, 31
             extraordinary burdens                       28, 30     - return                               20, 32
                                                                    - tax rate schedule                        30




                                 F
             F                                                      - time limit for filing return         21, 32
             federal administrative levies               16, 17     insurance of travel luggage                61
             Federal Tax Procedure Act                       11     interest on additional tax
             fees for lawyers                                56                        see interest on underpayment of tax

             fees for notaries                               56     interest on extension of time
             fees paid to subcontractors                     53     for payment of tax                                74
             field audit                                     24     interest on overpayment of tax                    21
             final consumer                                  37     interest on suspension of collection              73
98           fixed-assets register                       26, 58     interest on underpayment of tax                   21
intra-Community acquisition                               - input tax                              43, 67
of goods                                 46, 47, 49       - lump sum deduction, income tax              63
intra-Community supply                                    - lump sum deduction, value added tax 68
of goods                                 46, 47, 49       - partial                                     27
invoice (for small amounts)                  39, 40       - profits                                     63
invoice basis of accounting                      44       lump sum taxation for certain
invoices for small amounts                  see invoice   industries, income tax       see lump sum taxation
                                                          lump sum taxation for certain
J

                     J
                                                          industries, special          see lump sum taxation
jouissance shares                                  30     lump sum taxation for certain
journal                                            25     industries, value added tax see lump sum taxation
journalist                                         36     lump sum taxation of profits see lump sum taxation




                                                                          M
L                                                         M
land register
late payment penalty
lawyer
leasing
lecturer
                     L                    16, 17
                                     22, 50, 74
                         12, 26, 28, 55, 58, 68
                                          28, 36
                                          36, 66
                                                          magazines
                                                          main ledger
                                                          maintenance
                                                          managing director (salaries)
                                                          marginal tax rate
                                                                                              38, 51, 55


                                                                                             14, 18, 34
                                                                                                        25
                                                                                                   54, 55

                                                                                                        30
legal advice                                    12        microfilm                                     25
legal information                               12        minibus                                       43
legal person                              16, 34          minilomy                                 43, 59
legal remedy to appeal                    33, 72          minimum corporation tax        see corporation tax
lessor                                    36, 44          mixed vehicle         39, 43, 51, 54, 58, 59
liberal professions                                       motor-car             39, 43, 51, 54, 59, 59
         23, 26, 28, 36, 44, 58, 63, 65, 66, 68           motorcycle                          39, 43, 51
licence                                   36, 39          municipal tax                 10, 21, 22, 65
limited liability company        23, 24, 34, 35




                                                                            N
limited tax liability               see tax liability     N
living, expenses for                      53, 54          natural gas levy                              51
living space improvements                       30        net method                                    26
lottery winnings                                29        net worth                                     25
low-cost assets                  59, 64, 67, 69           net worth comparison method               23, 25
lump sum deduction, income tax                            new facts and circumstances                   72
                                 see lump sum taxation    newly established business                16, 75
lump sum deduction, value added tax                       newly issued shares                           30
                                 see lump sum taxation    newspapers                                38, 51
lump sum deduction of business expenses                   non-deductible expenses                       54
                                 see lump sum taxation    notarial deed                                 34
lump sum deduction of input tax                           notary                                12, 58, 68
                                 see lump sum taxation
                                                          O

                                                                            O
lump sum taxation                  23, 27, 63
- business expenses                    27, 63             obligation of disclosure                    13
- for certain industries, income tax 67, 68               obligation to cooperate                     13
- for certain industries, special      63, 70             obligation to make true statements          13
- for certain industries,                                 obligation to report                        13
- value added tax                      67, 68             one-half year's depreciation    see depreciation
- full                                 27, 63             overnight allowance 42, 59, 60, 61, 64, 65           99
XVI. INDEX

             P

                                P
                                                                 reopening the case                        12
             partial lump sum taxation see lump sum taxation     representative                            12
             partnerships                    16, 23, 24, 29      request for payment by instalments        74
             party                                       11      residual value                        58, 64
             passenger airplane                          54      retailers of
             patent lawyer                               68      food products             23, 24, 27, 63, 70
             payment of additional tax                   20      retention period                          25
             payment in instalments                      74      retention requirements                    24
             payment with grace period                   74      right to be heard                         12
             pensioner tax credit                        31



                                                                                     S
             per diem allowance          42, 60, 61, 64, 65      S
             period of supply                            40      sale of real estate                             36
             personal insurance                      30, 61      scanner                                         25
             physician                       26, 28, 58, 65      scope of supply                            40, 41
             placed in service                           57      securing living space                           30
             postponement of tax payment             73, 74      self-prepared documents                         53
             principle of cash expenses              26, 57      self-supplies                        36, 55, 67
             principle of cash receipts                  26      set-off of losses                               29
             procedural law                              11      share capital                                   34
             production costs        56, 57, 58, 59, 65, 68      signature card                                  14
             profit and loss account             19, 25, 32      Single Market rules                             49
             prohibition to claim depreciation                   single parent tax credit                        31
             for previous years                          58      slip                                            40
             proof of activity                           14      small entrepreneur                 see entrepreneur

             proof of identity                           14      small general partnerships                 23, 24
             property insurance                          61      small limited partnerships                 23, 24
             public houses, restaurants and                      sole earner tax credit                          31
             board and lodging enterprises       63, 70, 71      sole proprietor                            18, 23
             purchase book                   26, 65, 66, 67      special expenses                     28, 29, 30
                                                                 specification of recipient                      53
             Q
             questionnaire

             R
                              Q               13, 14, 46, 75
                                                                 stamp duties
                                                                 standard consumption levy
                                                                 standard tax rate
                                                                 standard VAT rate
                                                                                                            16, 17
                                                                                                  10, 14, 37 51
                                                                                                 see value added tax




                              R
                                                                                            see value added tax rate

             real estate               16, 17, 25, 28, 55        start-up loss                              13, 29
             real estate transfer tax           16, 17, 56       stock-taking                                    25
             recapitulative statement                 47, 49     subsidiary ledgers                              25
             recipient of the supply            36, 39, 40       supplier                                        40
             records                            13, 23, 24       supplies of services 36, 37, 41, 44, 68, 69
             reduced VAT rate              see value added tax   supply of goods                            36, 37
             refund                                   14, 15     surcharge on employer's contribution
             refund of energy levy                         51                                see employer's contribution

             register of customers                        25     surplus of receipts over expenses                  28
             register of suppliers                        25     suspension of collection                           73
             release from payment of tax                  74
                                                                 T
100
             remuneration for
             third-party services
             renting
                                       53, 64, 65, 66, 68
                                                28, 36, 38
                                                                 taking of evidence
                                                                 tapestry
                                                                                     T                              12
                                                                                                                    54
tax account                 14, 21, 45, 56, 74            V
tax calendar
tax credits
tax debt
tax depreciation
tax disc for highways
                                     22, 73, 74
                                                21
                                               30

                                   see depreciation
                                               43
                                                          value added tax
                                                          - assessment
                                                          - exemptions
                                                          - guidelines
                                                          - inspection
                                                                           V                               36
                                                                                                           50
                                                                                                           36
                                                                                                           11
                                                                                                           24
tax exemption                                  16         - liability                                  21, 45
tax file                                  14, 18          - notice of assessment                           50
tax forms                                see forms        - preliminary return                         39, 45
tax liability                                  28         - prepayment                                     21
tax offices guide                         11, 13          - rate                                           21
tax rate brackets                              30           standard tax rate                              38
tax representative                                          reduced tax rate                               38
                12, 13, 20, 24, 32, 35, 45, 50            - return                                         49
tax on acquisitions                            39         - taxable amount                                 37
tax on motor vehicles                     10, 51          - time limit for filing return               21, 49
tax on persons                                 55         - VAT identification number                  14, 46
tax rate schedule                         30, 34          VAT credit                                       45
tax return                                13, 20          VAT liability                      see value added tax
taxable acquisition                            47         verification procedure                       47, 48
taxes on wages                       16, 21, 22           veterinarian                                     68
taxi cabs                            39, 43, 59           vocational training, expenses
taxpayer                                        11        for training away from home                       30
taxpayer identification number 13, 14, 46
technical literature                      41, 55          W
temporary personnel
territory of the Community
third states
thresholds for bookkeeping
time limits
                                               53
                                          44, 47
                                          36, 43
                                               23
                                               20
                                                          wage account

                                                          wage tax
                                                          - examination
                                                          - guidelines
                                                                        W
                                                          wage sheet (transfer)
                                                                                                    26, 67
                                                                                                    18, 20
                                                                                            21, 31, 32, 65
                                                                                                        24
                                                                                                        11
tips                                 53, 61, 64           wages                             55, 64, 65, 66
toll                                           43         watch                                         54
total amount of income                         28         work of art                                   55
tourist exportations                      36, 44          writer                        27, 28, 58, 66, 70
trader 26, 36, 44, 58, 63, 65, 66, 67, 68, 69




                                                                            Z
transfer of business                      16, 75          Z
transport costs                                56         zero-rated supplies     see value added tax exemptions
transport of persons                           38
transportation costs                      59, 60
transportation tax credit                       31
travel accident insurance                       61
travel expenses                           54, 59
travel health insurance                         61




                   U
U
unlimited tax liability               see tax liability
useful life                            52, 58, 89
                                                                                                                   101
This brochure from the Federal Ministry of Finance can also be accessed on the Internet at:
                                  http://www.bmf.gv.at

								
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