Who gets low income tax compensation

Obligation to submit an income tax return and income tax assessment

Under certain conditions, a mandatory income tax return must be submitted. Here you can find out when this is the case.

Obligation to submit an income tax return

In principle, you are obliged to submit an income tax return whenever you are requested to do so by the tax office (Section 42, Paragraph 1, Item 1 of the Income Tax Act), ie. if you have received an income tax return. If no request is made, a distinction must be made as to whether income that is subject to wage tax is included or not.

There is an obligation to submit an income tax return for persons with unlimited tax liability (= persons with Austrian domicile or habitual residence in Austria) in particular in those cases in which the tax-free basic income is exceeded and there is not just one single income taxable income:

  • If your income does not include any income that is subject to wage tax, you must submit an income tax return if your income is more than 11,000 euros (Section 42 (1) (3) EStG).
  • If your income includes income that is subject to wage tax as well as other income (e.g. from a contract for work and services) totaling more than 730 euros and your total income exceeds 12,000 euros, you are obliged to submit an income tax return. Final taxed investment income is not to be included here!
  • If two or more non-self-employed activities are carried out at the same time or two or more pensions (which are not taxed jointly by one pensioner) are drawn and the income is more than 12,000 euros
  • Unrestricted taxpayers are also obliged to submit an income tax return if they have received income from capital assets that are subject to the special tax rate of 27.5 percent but not subject to KESt (in particular foreign capital income) and
  • if income is generated from private property sales within the meaning of § 30 EStG, for which no real estate income tax has been paid.

Finally, there is a tax declaration requirement if your income consists entirely or partially of business income (income from agriculture and forestry, from commercial operations as well as from self-employed work) and the profit is determined by bookkeeping.

You can therefore assume that you will usually have to submit an income tax return. The income tax return can be submitted electronically or using the official form (Form E 1 and the relevant enclosures). Please note that you are fundamentally obliged to submit your income tax return electronically via FinanzOnline (entries / declarations). This obligation also includes the submission of certain attachments: Book-keeping entrepreneurs must enclose their balance sheet and profit and loss account or submit them to the tax office when filing their electronic tax return (Section 44 (1) EStG). This can also be done electronically ("e-balance sheet"). For income-expenditure calculators, Appendix E 1a or E1a-K (small business owners) contains a standardized list of operating income and operating expenses. You do not have to submit an additional paper-based income and expenditure invoice.

Do not enclose a pay slip with your income tax return (E 1). This is sent to the tax office by the employer or the office paying the pensions. You can also request the pay slip from your employer or view the pay slip database via FinanzOnline.

Declaration deadline

The income tax return must be submitted by April 30 of the following year or, in the case of electronic transmission via FinanzOnline, by June 30 of the following year (Section 134 (1) BAO). In individual cases, the deadline for submitting the tax return can be extended upon justified request (Section 134 (2) BAO). This application can also be submitted electronically via FinanzOnline under Submissions / Applications / Deadline extension. If you are represented by a tax representative, you usually have a longer time to submit your tax return.

Income tax assessment

The income tax is generally determined in retrospect with a notice (Section 39 (1) EStG). After the income tax return has been submitted to the tax office, the assessment is made and the income tax is calculated according to the tariff.

The advance payments you have made in the amount of the expected income tax will be offset against the calculated income tax. If the income includes income from an employment relationship in addition to income as an entrepreneur, the withheld wage tax is deducted from the income tax, because this is only a special form of income tax collection.

Capital gains tax (KESt), which domestic banks or corporations withhold prior to the payment of investment income (e.g. savings interest, income from securities) and capital gains (in particular from the sale of shares or other shares), is basically also a special form of income tax. Since the investment income with the capital gains tax deduction is usually final taxed, such final taxed investment income does not need to be included in an assessment. However, they can (e.g. because the income including investment income is below the tax-free basic income of 11,000 euros or because losses from the sale of shares at various custodian banks are to be offset) voluntarily at the "normal rate" or using the special tax rate; in this case, the KESt will be offset against the income tax. Capital gains are only final taxed in private assets. In the operational area, asset losses are primarily offset against asset gains, 55 percent of the remaining losses are initially offset with a residual profit and then with other positive income as part of the assessment.

The real estate income tax (ImmoESt) levied on property sales is also a special form of income tax. This also has a final tax effect in the private sector. However, you can also set the property income here voluntarily, e.g. because not all expenses have been taken into account in the ImmoESt calculation or - as with the KESt - the income including property gains is below the tax-free basic income of 11,000 euros or because losses have occurred 60 percent should be offset with surpluses from renting, whereby without an application for immediate compensation, 4 percent of the property loss is generally offset within 15 years. In the operational area, property losses are primarily offset against property gains; 60 percent of the remaining losses are initially offset with a residual profit and then, as part of the assessment, with other positive income.

A fixed income tax liability is to be paid within one month - calculated from the delivery of the notification (Section 210 (1) of the Federal Tax Code - BAO).

If you do not agree with the notification, because the notification deviates from your statement, for example, or because you made a mistake in drafting the declaration, you can appeal the complaint within one month of the notification of the notification (§§ 243ffBAO). .

A fixed income tax liability is to be paid within one month - calculated from the delivery of the notification.

Last update: January 1st, 2020