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Austria: Tax developments in response to COVID-19

General Information

This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).

The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.

Date accurate as of: 14 October 2020

Reduction / non-assessment of Austrian income and corporate tax payments in 2020

  • If a taxpayer can credibly state that they are affected by coronavirus (COVID-19), advance payments for (corporate) income tax 2020 may be reduced even to zero as the case may be. This will be relevant in industries in which a significant economic decline due to the current situation is expected. Applications can be submitted until October 15,  2021.

Deferral of tax payment deadlines and the introduction of an option to make tax payments in installments.

  • The taxpayer can apply to his tax office for deferral of payment of a tax or to pay the tax in instalments. Such applications lie in the discretion of the tax office which must, however, strongly consider the situation triggered by the SARS-CoV-2 virus. According to the wording of the published information this possibility is not restricted to specific taxes. Applications for deferral  or  payment  in  instalments  may also be  possible  for all taxes, for instance also for advance VAT payments, but needs to be confirmed.
  • Until an application for deferral is answered by the tax office, there is no payment obligation and no collection measures may be taken by the tax  authorities.

Customs/Import and Other Miscellaneous Taxes:

The Austrian government, in a draft bill, has proposed that no stamp tax (duties) would be levied on any documents directly or indirectly related to any measures required to deal with the coronavirus crisis.

Filing/Payment Deadline Extension:

Upon request and based on specific impact of the virus on the particular situation:

  • Tax prepayments for individual and corporate income tax purposes may be reduced to zero upon request.
  • Late payment penalties may be reduced or waived upon request.
  • Tax authorities may defer taxes if their collection would lead to significant hardship or agree to payments in instalments.

Suspension of Tax Audits:

There are discussions to reduce tax audit, as companies need resources to respond to the pandemic. Otherwise tax audit may focus on the compliance of policies and appropriate utilization of COVID-19 subsidies.

The Austrian government has provided tax and non-tax measures to support the economy in response to the coronavirus (COVID-19) pandemic. 

Among the tax-relief measures:

  • A draft bill before the Austrian Parliament on 13 May 2020 would implement a rescue package for the Austrian restaurant sector and would offer tax incentives for consumption in restaurants.
  • A customs procedure provides a tax exemption for imports concerning delivery of another EU country.
  • A reduction of the value added tax (VAT) rate to 0% for supplies of protective masks supplied after 13 April 2020 and before 1 August 2020.

Additional Information

Additional information regarding employment-related measures, economic stimulus measures and other measures.