On 8 May 2019, the Austrian Ministry of Finance published a draft bill regarding tax reform for 2019-2020. The main measures of the draft bill are following:
-A reduction in the corporate tax rate from 25% to 23% in 2022 and to 21% in 2023;
-Implementation of anti-hybrid provisions pursuant to the EU directive (ATAD 2) into Austrian domestic tax law;
-The extension of the research premium, especially for sole traders and partnerships;
-Introduction of a simplified scheme for small entrepreneurs (annual turnover of less than EUR 35,000) for the computation of taxable net business income with lump-sum deductions for business expenses in the amount of up to 60% of the gross business income; and
-An increase in the small business VAT exemption from EUR 30,000 to EUR 35,000.
