Corona virus: How do you get room for financial maneuver? Reducing advance payments for (corporate) income tax, VAT and social security contributions

LBG Austria - Summary: Anyone who is directly or indirectly affected by the Corona virus as an entrepreneur - on the one hand due to illness and quarantine or on the other hand due to massive business losses - and must fear payment difficulties and liquidity problems as a result, has the option of reducing prepayments of income and corporate tax as well as social security contributions or to apply for deferral or payment in installments for all taxes and social security contributions.

If you make an application for a reduction in the (corporate) income tax advance payments or the social security contributions, this application must contain a reason in which the reduced profit expectations due to the economic situation are set out. The figures reported have to be proven to the tax office e.g. by presenting an interim balance or in the current situation by showing the order situation or by proof of cancellations. In any case, corporations have to pay the minimum corporation tax to tax authorities. In the case of VAT prepayments, the monthly / quarterly reporting obligation must be observed; a reduction of the sales tax liability is not possible.

For levies and social security contributions that are not reduced, an application for payment relief (deferral, payment in installments) can also be filed in the event of liquidity problems. Such an application must be submitted by the due date at the latest in order to avoid consequences of default.

March 13th, 2020 | Author: Antje Ploberger | LBG

Contact & Advice: This information naturally shows basic aspects of the topic - for completeness and correctness no guarantee can be given despite careful preparation. LBG will gladly advise you in your individual situation. Please contact one of our 31 Austria-wide locations (www.lbg.at) or welcome@lbg.at - we will gladly bring you together with one of our experts, who is very familiar with your request.