Governmental work plan for 2017 and 2018

After intensive negotiations the federal government has concluded a work plan for the next 18 months. This plan focuses on employment and security/integration. We would like to provide you with an overview of major tax and legal highlights.

Employment bonus.

From July 2017, enterprises should be able to claim 50% of ancillary wage costs for each additional employee (full-time-equivalent). Claims should be processed by the “austria wirtschaftsservice” (aws).

Continued remuneration revised.

From July 2017, enterprises up to 10 employees should be able to claim 75% of the continued remuneration in case of a sick-leave of an employee at the AUVA.

Minimum wage.

Together with the social partners, a minimum wage amounting to 1.500 euro should be established. If the social partners do not come to an agreement, Austrian government will enact an own proposal.

Measures against tax profit shifting.

Taxation of online based multinational companies should be more efficient in the future. In addition to the already enacted international measures (BEPS …) more national actions will follow. The extension of the advertising tax to online revenues combined with a lower tax rate is mentioned as one example.

Abolishment of silent progressive taxation.

Both lower income tax tariff steps (11.000 euro resp. 18.000 euro) should be indexed automatically when inflation exceeds 5%. The automatism will not concern the tariff steps for higher income classes (still subject to law-makers decision).

Reduction of flight tax.

From 2018, flight tax rate should be reduced by 50%.

Raise of research premium.

From 2018, the research premium should be raised from 12% to 14%.

Investment allowance.

From March 1st, 2017 to December 31st, 2017, investments in tangible assets (excluding real estate and cars) by enterprises with more than 250 employees should trigger a claim for an early depreciation allowance of 30%. In 2017 and 2018, SME can claim an excessive investment premium already agreed by the Austrian Council of Ministers (claims are processed by the aws).

Legal security for differentiation between employment and self-employment contracts.

Concerning this agenda, the social partners already came to an agreement. The respective law should be enacted in the first half of 2017.

Reform of the FMA.

The outcome of the task group for reforming the Financial Market Supervision in Austria (FMA) should be implemented in time. Greater transparency, better legal security for the supervised parties and shortening of the procedures should be obtained by these measures.

Reform of corporate financial restructuring.

The government wants to improve the legal framework for corporate restructuring to facilitate financial restructuring of distressed companies outside of insolvency procedures. This should help to make Austria more attractive for international investors.

Obligatory women quota in supervisory boards.

From January 1st, 2018, supervisory boards of companies listed on the stock exchange and companies with more than 1000 employees should comprise 30% women minimum. This is obligatory in cases of replacements.

Relaunch of private foundations.

Assets of a foundation should become more mobile by strengthening the influence of the beneficiaries – limited by the donator’s will.

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Christoph Nestler

Christoph Nestler

Senior Manager | Deloitte Tax Telefon: +43 537 00-6680 Mail: cnestler@deloitte.at

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