There will be a number of changes for companies in the new year. For example, according to Karlheinz Kopf, Secretary General of the Chamber of Commerce and ÖVP politician, energy costs and labor shortages are the main challenges for Austrian companies on Friday at the turn of the year.
Here is an overview of the upcoming innovations at a glance:
Subsidy energy costs: Companies can apply for a subsidy to cover the increased energy costs. First of all, the current EKZ 1 (originally from 1 February to 30 September 2022) will be extended with a second subsidy period from 1 October to 31 December 2022, for which a new application option will be introduced. From 1 January 2023, the greatly expanded EKZ 2 will follow, with the criterion of energy intensity of three percent in the first two subsidy phases leading to a financing volume of four million euros (previously only in phase 1 with energy costs of up to 700,000 euros). In addition, in phases 1 and 2, the subsidy percentages will be increased from 30 percent to 60 percent or 50 percent and other energy sources will be included in the subsidy. In addition, micro and small businesses will continue to be financed through a lump sum financing model.
Corporate income tax reduction: From 2023, corporate income tax will be reduced from 25 percent to 24 percent. A further reduction to 23 percent will follow in 2024.
Investment deduction and eco-investment deduction: For economic goods, 10 percent of the acquisition costs can be declared as operating costs. There is a 15 percent exemption for environmental assets (to be determined).
Reduction of indirect labor costs: From 2023, the employer’s accident insurance contribution will be reduced from 1.2 percent to 1.1 percent. Under certain conditions, the employer’s contribution to the Family Costs Fund (FLAF) can also be reduced from 3.9 percent to 3.7 percent.
New grants: From 2023 to 2030, the government will make approximately 5.7 billion euros available to industry to promote decarbonisation measures. Consider, for example, switching to climate-friendly production, energy saving or thermal renovations. In addition, Carbon Contracts for Difference will be introduced as a new financing instrument.
Expansion of the list of shortage occupations: The Professional Ordinance makes access to the Red-White-Red Card easier for professions with a lack of applications. The scheme for 2023 contains 98 national shortage occupations (previously 68) and also regional shortage occupations for all nine federal states (previously 8).
Seasonal: The quota scheme for 2023 provides for 3,389 quota places in tourism, 3,060 in agriculture and forestry and 119 for harvest workers. During seasonal peaks, temporary exceedances (up to 50 percent in tourism, 30 percent in agriculture and forestry) are permitted.
More net of gross: From 2023, the income tax brackets and a number of deductions will be adjusted annually in line with inflation. In addition, middle earners are further relieved: in the third tax bracket (32,075 euros to 62,080 euros) you pay 41 percent tax in 2023 and 40 percent from 2024.
Immediate debit: Economic goods with a value of up to 1000 euros can be fully deducted immediately as “economic goods of low value”. Previously, the limit was 800 euros.
Profit determination for small business owners: The lump sum payment for the tax determination of the profit is possible for small entrepreneurs from 2023 up to an annual turnover of 40,000 euros net (previously 35,000 euros). In the case of the lump sum, the operating costs are set at a flat rate of 45 percent of the operating income (20 percent for service companies). In addition to the lump sum, certain other operating costs may also be recognized (eg social security contributions).
Innovations in short-time work: The short-time working subsidy will be extended largely unchanged until the end of June 2023. What is new is that the mandatory holiday consumption for short-time working and the confirmation of the economic justification by a tax consultant, an auditor or an accountant no longer apply and students no longer receive a subsidy to get.
partial pension: Partial pension is possible for women at the earliest from the age of 57 years and 6 months, unless they were born before 2 December 1965 – then partial pension is possible from the age of 57.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
