Tackling taxes - Deloitte Tax News

Tax Services
No 21 / 22. 10. 2012
Breaking Tax News
Tackling taxes
Amendments to Federal Tax Law 2012 –
Governmental Bill - income taxes
As reported in our BTN No 14 and No 15 the Austrian
Ministry of Finance has recently published the initial
draft of the amendments to Federal Tax Law 2012
(„Abgabenänderungsgesetz 2012“). Now the
Governmental Bill is available. We have outlined
the most significant highlights:
Income Tax Act
Balance sheet adjustments.
The obligation of balance sheet adjustments according
to Sec 4 para 2 ITA shall be extended for purposes of
a correct taxation. Now, also tax-effective adjustments
based on income and deductions originated in periods
beyond the statute of limitation but affecting years
within the statute of limitation shall be possible. The
correction shall be carried out via correction of tax
assessments according to Sec 293b Fiscal Code.
Sec 293c Fiscal Code, which contained a comparable
provision up to now, will be omitted once the new
provision enters into force on 1 January 2013.
Deductibility of donations.
The deductibility of donations shall be limited to 10 %
of the profits before tax allowance from profits
respectively 10 % of the overall income of the current
year. Until now the previous business year was relevant.
Sale of real estate against annuity.
When the revenue derived from selling of real estate is
paid out as an annuity, the special real estate income tax
rate of 25 per cent (“Immo-ESt”) shall not be applicable
any more. However, this only concerns tax assessment
according to the cash-flow based taxation principle
(cash accounting according to Sec 4 para 3 ITA
respectively Sec 19 ITA).
Alienation of a Participation in a non-operative
Partnership.
The tax court of appeals held recently (UFS Wien,
RV/1060-W/09, RV/1225-W/10, 21.12.2011) that
participations in a non-operative partnership are to
be considered as single assets in case of sale without
causing a look-through on proportionate assets.
Henceforth, selling the participation shall be considered
as a sale of respective shares in assets of the partnership.
Filing obligation due to a notification on
tax exemptions („Freibetragsbescheid“).
In case a notification on tax exemptions has been
taken into account for payroll accounting, the filing
of a tax return in the respective year shall be obligatory
(Sec 41 para 1 subpara 4 ITA).
Income from capital assets.
In order to enable the correct calculation of the loss
compensation for each tax payer losses deriving from
securities accounts with more than one depositor
should be excluded from the loss compensation.
Income deriving from non-securitized derivatives
should be subject to the special tax rate in the amount
of 25 %, in case a tax corresponding to the capital
gains tax (KESt) is levied voluntary.
Research and development credit.
The envisaged amendments in the law shall clarify that
an expert opinion of the “Forschungsförderungsgesellschaft” (FFG) is compulsory for all R&D premiums
concerning business years beginning after 31 December
2011. Moreover, request and forwarding of the expert
opinions shall be made electronically via „FinanzOnline“.
Corporate Reorganization Tax Act
Deemed dividend distribution for import mergers.
The dividend distribution fiction for import mergers
with passive income companies based in low-tax
jurisdictions (Sec 10 para 4 Corporate Income Tax Act)
shall henceforth be applicable to any group mergers
(e.g. side-stream merger, down-stream merger) and
not only to upstream mergers. The new provision of
sec 3 para 1 subpara 3 UmgrStG shall be applicable
to mergers which are filed with the commercial court
after 31 December 2012.
As the Amendments to Federal Tax Law 2012 are
currently only a draft for legal appraisal, the further
adoption remains to be seen. We will keep you
informed.
Your Deloitte Tax Advisor will be
happy to answer your questions.
Deemed dividend distribution for changes
of corporate forms.
As of the day the resolution for change of a company’s
legal form is filed with the commercial court, dividends
are regarded as distributed to the legal successors
(deemed dividends). Deemed dividends in this context
are – in a simplified manner – defined as the difference
between capital according to Sec 8 para 5 UmgrStG
and the contributions according to Sec 4 para 12
Income Tax Act as at date of change of legal form
(Sec 9 para 6 UmgrStG).
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