That will change in 2023 for domestic companies – Austria
In the new year, companies in Austria will face several changes. We have an overview of the innovations from 2023.
Energy costs and labor shortages are being addressed as central challenges for Austria’s companies, according to Karlheinz Kopf, Secretary General of the Chamber of Commerce and ÖVP politician, on Friday around the turn of the year. Here is a list of the expected changes at a glance:
Overview of changes for domestic companies from 2023
energy cost subsidy
Companies can apply for a subsidy to cover the increased energy costs. First, the current EKZ 1 (originally from February 1st to September 30th, 2022) with a second funding period from October 1st. extended until December 31, 2022, for which there will be a new application option.
The significantly expanded EKZ 2 will follow from January 1, 2023, in which the criterion of energy intensity of 3 percent will no longer apply in the first two funding stages up to a funding volume of 4 million euros (previously only in stage 1 with energy costs of up to 700,000 euros).
In addition, in stages 1 and 2, the subsidy rates will be increased from 30 percent to 60 percent or 50 percent and other energy sources will be included in the subsidy. In addition, micro and small businesses will continue to be funded with a flat-rate funding model.
Corporate tax reduction
From 2023, corporate income tax will be reduced from 25 percent to 24 percent. A further reduction to 23 percent will take place in 2024.
Investment allowance and eco-investment allowance
In the case of economic goods, 10 percent of the acquisition costs can be claimed as operating expenses. There is an exemption of 15 percent for ecological assets (to be determined in detail).
Reduction of non-wage labor costs
From 2023, the employer’s contribution to accident insurance will be reduced from 1.2 percent to 1.1 percent. Under certain conditions, the employer’s contribution to the Family Burdens Equalization Fund (FLAF) can also be reduced from 3.9 percent to 3.7 percent.
New promotions
From 2023 to 2030, the government will provide industry with around 5.7 billion euros to promote decarbonization measures. This includes, for example, switching to climate-friendly production, energy savings or thermal renovation. In addition, Carbon Contracts for Difference will be introduced as a new funding instrument.
Extension of the list of shortage occupations
The Skilled Workers Ordinance provides relaxed access to the Red-White-Red Card for professions with a lack of applications. The regulation for 2023 contains 98 nationwide shortage occupations (previously 68) and also regional shortage occupations for all nine federal states (previously 8).
seasonal workers
The quota regulation for 2023 provides for 3,389 quota places in tourism, 3,060 in agriculture and forestry and 119 for harvest workers. At seasonal peaks, temporary exceedances (up to 50 percent in tourism, 30 percent in agriculture and forestry) are permitted.
More net from the gross
From 2023, the income tax brackets and several deductions will be adjusted annually to the inflation rate. In addition, middle earners will be further relieved: In the third tax bracket (32,075 euros to 62,080 euros) you pay 41 percent taxes in 2023 and 40 percent from 2024.
immediate write-off
Economic goods with a value of up to 1,000 euros can be immediately deducted in full as “low-value economic goods”. Previously, the limit was 800 euros.
Profit determination for small business owners
The lump sum for the tax determination of profit is possible for small entrepreneurs from 2023 up to an annual turnover of 40,000 euros net (previously 35,000 euros). With the lump sum, the operating expenses are set at a flat rate of 45 percent of the operating income (20 percent for service companies). In addition to the lump sum, certain other operating expenses can also be recognized (e.g. social security contributions).
Innovations in short-time work
In principle, the short-time work allowance will be extended until the end of June 2023. What is new is that the conditional holiday consumption during short-time work and the confirmation of the economic justification by a tax consultant, an auditor or an accountant are no longer applicable and apprentices no longer receive any subsidy.
partial retirement
Partial retirement is possible for women at the earliest from the age of 57 years and 6 months, unless they were born before December 2nd, 1965 – then partial retirement is possible from the age of 57.