The Austrian government has approved new accounting reforms that raise the bookkeeping threshold from EUR 700,000 to EUR 1 million in annual turnover and allow companies to capitalise intangible assets like software and patents, aiming to cut red tape for SMEs and improve their access to financing.
The Austrian Federal Government has announced on 16 April 2026 new measures aimed at reducing administrative burden for companies, particularly benefiting small and medium-sized enterprises (SMEs) and start-ups through updated accounting requirements.
Barbara Eibinger-Miedl said the reforms raise accounting thresholds to support SMEs and start-ups, reducing bureaucracy, improving predictability, and enhancing access to financing and innovation visibility.
Updated accounting requirements
The government has raised the revenue threshold that determines accounting obligations from EUR 700,000 to EUR 1 million. This means companies with an annual turnover below EUR 1 million can continue using simplified cash-basis accounting methods instead of more complex double-entry bookkeeping. This adjustment addresses concerns that inflation and rising prices were pushing businesses into more demanding accounting requirements without genuine growth in their operations.
New capitalisation rules for intangible assets
A significant change comes through Section 197 Paragraph 2 of the Austrian Commercial Code (UGB), which now permits companies to capitalise internally generated intangible assets on their balance sheets. Previously, items like proprietary software or patents developed in-house could not be recorded as assets in the same way as physical property.
This modification allows businesses to showcase their innovation efforts on financial statements, potentially strengthening their equity position and improving creditworthiness when seeking bank financing or attracting investors.
The reform package also incorporates elements of the EU Omnibus Act related to sustainability reporting simplification, with the draft currently in interministerial coordination.
