Austria: Updated the guidance on tax incentives for start-up companies

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The Ministry of Finance updated guidance on tax incentives for start-up companies on 14 February 2017. The incentives for start-up companies are granted if the following requirements are met:

  • A new company has been set up;
  • The company derives business income;
  • The individual controlling the company within 2 years after having been set up has not controlled any other company before;
  • No transfer of an existing company to a new director is involved;
  • No (part of) an existing company has been added to the new company structure in the month in which it was set up or the subsequent 11 months; and
  • No change in legal form of an existing company is involved.

If these requirements are met, an exemption from the following taxes and duties applies:

  • Stamp duties and federal administration fees;
  • Real estate transfer tax payable on the contribution of real estate to the company’s business;
  • Court fees payable on the registration of the company and real estate; and
  • Wage tax reductions for a period of 35 months. After 12 months, the wage tax reduction only applies to the first three employees.

Moreover, exemptions are granted for company transfers if the following collective conditions are met:

  • A company (one-man business or a participation in a partnership or company) has been transferred with or
  • The company is controlled by a new director; and
  • The new director has not been involved in any business activities before.
  • The exemptions included the following:
  • Stamp duties and federal administration fees;
  • Court fees payable upon registration; and
  • Real estate transfer tax if the value of the real estate does not exceed EUR 75,000.

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