Tax tips for all taxpayers

1. Pay special expenses before 31.12.2023

   

1.1. Subsequent purchase of pension insurance periods and voluntary continued insurance in the pension insurance scheme

Without a limit on the amount and regardless of income, subsequent purchases of pension insurance periods (purchase of school and study periods) and voluntary continued pension insurance contributions are deductible. One-off payments can be deducted as a special expense spread over 10 years on application.

     

1.2. Pensions, tax consultancy costs and church contributions

Unlimited deductible special expenses are certain pensions (e.g. purchase price pensions after the expiry of certain tax periods, pension legacies to be paid by the heir) and tax consultancy costs. Church contributions (even if they are paid to comparable religious societies in the EU/EEA) are deductible up to a maximum annual amount of € 400.

   

1.3. Donations as special expenses

The following donations can be deducted for tax purposes as special expenses/business expenses:

• Donations for research tasks or teaching tasks serving adult education to certain institutions as well as donations to certain organizations listed exhaustively in the law, such as museums, the Federal Monuments Office and umbrella organizations for disabled sports.
• Donations for charitable purposes, for the fight against poverty and need in developing countries and for assistance in national and international disasters.
• Donations to organizations dedicated to the protection of the environment, nature and species, animal shelters, voluntary fire departments, provincial fire brigade associations and the International Anti-Corruption Academy (I-ACA), generally accessible presentation of works of art, etc.

Most beneficiaries of donations must register with the tax office and are published on the homepage of the Federal Ministry of Finance (http://www.bmf.gv.at/Service/allg/spenden/). Certain Austrian museums, the Federal Monuments Office, universities and similar institutions as well as voluntary fire departments and provincial fire brigade associations are exempt from registration.

Donations to all beneficiaries are deductible within the following limits:

• Donations of up to 10% of the profit for the current financial year can be deducted as operating expenses.
• Private donations deductible as special expenses are limited to 10% of the current annual income, whereby already deducted business donations are offset against this limit.

TIP: Donations, church contributions or contributions for voluntary continued insurance or for the subsequent purchase of insurance periods in pension insurance will only be taken into account in your (employee) assessment for 2023 on the basis of the electronically transmitted data of the recipient organizations.

    

1.4. Special eco-expense allowance

Since 2022, expenses for the thermal refurbishment of buildings and the replacement of fossil fuels with more climate-friendly heating systems have been eligible.

If the costs for thermal refurbishment exceed € 4,000 or € 2,000 for boiler replacement (after deduction of all subsidies), the special eco lump sum of € 800 or € 400 is available in 2023. The remaining expenses are divided over the next 4 years. However, this special lump sum for special expenses can only be claimed in 2023 if the underlying grant application is submitted in 2023.

   

2. Donations from private foundations 

Charitable private foundations can make donations from the foundation's assets free of withholding tax for the above-mentioned beneficiaries. No beneficiary declaration is required for these donations in accordance with § 5 PSG.

Please note: As a foundation director, however, you should first find out whether the foundation deed authorizes you to make donations at all.

   

3. Pay extraordinary expenses before 31.12.2023

The prerequisite for the recognition of medical expenses as an extraordinary burden is that there is evidence of an illness that is alleviated or cured by the treatment. Deductible costs include costs for doctors, medication, hospital, care, expenses for dental treatment or medically necessary spa stays and expenses for medical aids such as dentures, visual aids including laser treatment to improve eyesight, hearing aids, prostheses, walking aids and hernia bands. Such expenses only become taxable if they exceed a deductible (which is a maximum of 12% of income) depending on income and marital status.

TIP: Certain extraordinary expenses (e.g. disabilities, catastrophic damage, costs of children's vocational training away from home) can be deducted without reducing the deductible. Due to the increased occurrence of storms in 2023, special attention must be paid to extraordinary expenses in connection with disaster damage. Disaster damage includes the costs of repairing direct disaster damage, the costs of repairing and restoring damaged items and the costs of replacing destroyed items.

TIP: Medical expenses are generally to be borne by the sick person themselves, whereby the sick person must retain a tax-free minimum subsistence level of € 11,693. Therefore, medical expenses can be borne and deducted by the (spouse) partner if the income of the sick (spouse) partner would fall below the minimum subsistence level for tax purposes if the costs were not borne.

   

4. Realizing losses on securities

Profits from the sale of so-called "new assets" in 2023 are subject to securities gains tax of 27.5%. "New assets" include all shares and investment funds acquired since 1.1.2011 as well as all other investments acquired against payment from 1.4.2012 (in particular bonds, derivatives). Since 2023, cryptocurrencies acquired after March 31, 2021 also count as "new assets". Income from this can be offset against income from other investments.

TIP: Losses from the sale of these investments that are attributable to "new assets" can be offset not only against capital gains, but also against dividends and interest from bonds (but not against interest on savings accounts, for example).

TIP: If you have securities accounts with different banks or, for example, a joint securities account with your wife, you must request certificates of loss compensation. You can then offset any unrealized losses from one securities account against the positive income from the other securities account in your tax returns.

  

Source: ÖGSW