On 20 March 2015, the Ministry of Finance of Austria published the first details of the planned Tax Reform. On 16 June 2015, the Austrian Government approved a draft version of the Tax Reform Act 2015. The reform will, in principle, be applicable from 1 January 2016.
Corporate key elements of the reform are:
- An increase of the withholding tax on investment income from 25% to 27.5%. The withholding tax on savings income will remain 25%.
- The capital gains tax rate on the sale of real estate increases from 25% to 30%.
- A single depreciation rate of 2.5% for buildings will be introduced.
- The invention premium will be increased from 10% to 12%.
- The real estate transfer tax rate will be changed by introducing a different rate structure. Instead of the single rate of 3.5%, transfers of property with a value of up to EUR 250,000 will be subject to a rate of 0.5%, transfers with a value of up to EUR 400,000 will be subject to a rate of 2% and transfers with a value of more than EUR 400,000 will be subject to a rate of 3.5%.
- The VAT rate for certain supplies will be increased from 10% to 13% (e.g. animals, seeds and plants, cultural services, museums, zoos and domestic air travel).
- Anti-fraud measures will be introduced. It is planned to introduce mandatory cash registers for businesses which mainly have cash transactions (applicable for businesses with a net turnover of more than EUR 15,000 annually).
As soon as the final bill is available, more details will be reported.