Austria's Ministry of Finance has issued a release on the assistance being provided for businesses repaying deferred taxes, including a reduction of initial installments when repayment begins.
Blümel: Helping businesses repay deferred taxes
Federal Ministry of Finance – Instalment payment calculator now online – applications open for COVID-19 instalment payment scheme including 'safety car' phase from 10 July 2021
The formal deferral of tax arrears implemented during the COVID-19 pandemic ends on 30 June. Up to the beginning of June, EUR 5.6 billion in tax had been deferred or made subject to preferential payment terms; actual deferrals of income tax and corporate income tax total approximately EUR 3.2 billion. "We must not place an excessive burden on businesses as they start back up, and after reopening we must proceed cautiously, for indeed, the principle of caution applies to the collection of outstanding taxes too. For this reason, we are beginning with a so-called 'safety-car' phase and showing the greatest possible goodwill. We have therefore devised the COVID-19 instalment payment scheme, including 'safety-car' phase," explains Finance Minister Gernot Blümel.
The instalment payment scheme is open to everyone who has built up tax arrears during the COVID-19 pandemic or who is currently still taking advantage of tax payment deferrals. The new scheme enables participants to repay their tax debt over a period of up to 36 months. Applications for the COVID-19 instalment payment scheme will be open from 10 June 2021 until 30 June 2021, and the simplest way to apply is using FinanzOnline. The scheme is open to all those for whom over half their tax arrears fell due after 15 March 2020. This also includes existing determinations of on-account income tax or corporate income tax payments.
The so-called 'safety-car' phase additionally offers the option of paying a minimum amount over the first three months if a taxpayer's personal financial position so requires. Specifically, the respective instalments for July, August and September can be set at 1% or 0.5% of the total amount. "Even with the economy starting up again, we are being as accommodating as possible. We have helped taxpayers through this crisis and will support them as effectively as we can on the path back to economic normality. The aim is for the 'safety-car' phase to assist in this," adds Blümel.
Info letters and instalment payment calculator
In order to provide the best possible service to the relevant taxpayers, over the next few days the Federal Ministry of Finance will be sending out information via FinanzOnline Data Boxes and by post to around 350,000 taxpayers with more than EUR 100 in outstanding tax arrears on their tax account. In addition, at bmf.gv.at/ratenzahlung (in German), all relevant information can be found, as well as a new instalment payment calculator (in German). This enables the anticipated repayment amount to be calculated by entering the amount of arrears owed.