Mag. Martin Riedler
Flat rate taxation schemes in
Austria
Tbilisi, 5th of May 2011
Flat rate taxation schemes in Austria
• Flat rate taxation for Income Tax
purposes
(partial and full flat rate taxation):
• Flat rate taxation for VAT purposes
(refers only to the determination of
deductible Input VAT)
Flat rate taxation schemes in Austria/Mag. Martin Riedler/Tbilisi/5th of May 2011
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Flat rate taxation for Income Tax
purposes
• Flat rate deduction of business
expenses (partial flat rate taxation):
- General flat rate deduction of expenses
- Industry-specific flat rate taxation
• Flat rate taxation of profits
(full flat rate taxation):
- Industry-specific flat rate taxation
(smaller farmers, hotels and catering
businesses, food retailers or grocers)
Flat rate taxation schemes in Austria/Mag. Martin Riedler/Tbilisi/5th of May 2011
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General flat rate deduction of
business expenses
• For self employed taxpayers such as
medicals, lawyers etc., and for traders
• Considered a special cash accounting
method
• Income Tax Act specifies the general
provisions
Flat rate taxation schemes in Austria/Mag. Martin Riedler/Tbilisi/5th of May 2011
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Requirements for General flat rate
deduction of business expenses
• Supplies made in the preceding
accounting year must not exceed
€ 220,000
• No double-entry book keeping allowed
• The taxpayer has to opt for the flat rate
deduction scheme in the tax form
Flat rate taxation schemes in Austria/Mag. Martin Riedler/Tbilisi/5th of May 2011
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General flat rate deduction of
business expenses
• Business expenses are equalled to 12%
of net revenues, limited to the
maximum of € 26,400
• For some professions a rate of 6% of
net revenues is fixed, limited to the
maximum of € 13,200
(e.g. for commercial or technical consultancy,
Lecturers, Scientists, Teaching and
educational activities etc.)
Flat rate taxation schemes in Austria/Mag. Martin Riedler/Tbilisi/5th of May 2011
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Additional Business expenses
In addition to flat rate business expenses, the
following (already paid) expenses may be
claimed with their actual amounts:
• Expenses for goods, semi-finished goods, raw
materials and consumable materials,
• Expenses for wages and incidental
employment costs,
• Remuneration for third-party services,
• Social security contributions
Flat rate taxation schemes in Austria/Mag. Martin Riedler/Tbilisi/5th of May 2011
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Calculation of taxable profit
Net revenues
- Net expenses for goods, semi-finished goods
raw materials and consumable materials
- Wage costs
- Net expenses for third-party services
- Social security contributions
- 6% or 12% of net revenues
= TAXABLE PROFIT
Flat rate taxation schemes in Austria/Mag. Martin Riedler/Tbilisi/5th of May 2011
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Full flat rate taxation
• Flat rate taxation of profits for taxpayers
working in certain industries
• No double-entry book keeping allowed
• Profits are computed as a base amount plus a
percentage of the revenues
• Several ordinances issued by the Federal
Ministry of Finance specify the provisions for
each industry
Flat rate taxation schemes in Austria/Mag. Martin Riedler/Tbilisi/5th of May 2011
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Flat rate taxation for VAT purposes
• Refers only to the determination of
deductible Input VAT
• Not bound to the option for flat rate
taxation for Income Tax purposes
• General flat rate deduction of Input VAT
or Industry-specific flat rate deduction
of Input VAT
Flat rate taxation schemes in Austria/Mag. Martin Riedler/Tbilisi/5th of May 2011
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General flat rate deduction of Input
VAT
• Supplies made in the preceding
accounting year must not exceed
€ 220,000
• Option for flat rate scheme is allowed
for book-keeping taxpayers, too
• The flat rate deduction of Input VAT is
generally calculated at a rate of 1.8% of
total supplies made (max. € 3,960)
Flat rate taxation schemes in Austria/Mag. Martin Riedler/Tbilisi/5th of May 2011
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