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Simply Less Taxes by “Relieving Austria” Austrians will be relieved of a total of € 8.3 bn per year in taxes from 2022 onwards by the relief programme of the Federal Government

Vienna (OTS) – Federal Chancellor Sebastian Kurz, Vice-Chancellor Heinz Christian Strache, Finance Minister Hartwig Löger and Finance State Secretary Hubert Fuchs today presented the key points of the tax reform. “‘Relieving Austria’ stands for a new redistribution from the state to the citizens and companies. Until 2022, Austrians will be relieved of a total of € 8.3 bn per year,” stated Finance Minister Hartwig Löger. So far, the Family Bonus Plus, the reduction of unemployment insurance contributions and the reduction of turnover tax in tourism have already come into force. From 2020 on, further measures will gradually follow for low-income earners, taxpayers and businesses.

“‘Relieving Austria’ is not just a tax reform. It is a comprehensive programme that also relieves those who do not pay taxes. It comprises measures for all Austrians, as well as employment and investment incentives, and brings many simplifications of tax law. Low and medium incomes in particular will pay less tax as a result of our programme,” said the Finance Minister.

“To me as the Finance Minister, it is particularly important that all these relief measures are counterbalanced by reasonable funding. We are launching the first tax reform without new debts. ‘No new taxes and no new debts’ makes this tax reform a common-sense reform and is an expression of our understanding not to make policy at the expense of future generations,” the Finance Minister continued.

Finance State Secretary Hubert Fuchs added: “In the past, tax reforms were mainly financed by new debts or new taxes. We, by contrast, ensure honest and sustainable relief. We strengthen low and medium incomes, but also small and medium-sized enterprises.”

As early as next year, low incomes will be relieved by reduction of social-insurance contributions, the limit of low-value assets will be raised, and measures will be taken to reduce bureaucracy and to protect the environment.

2021 will then see the first stage of relief for wage and income tax payers through reduction of the first tax bracket from 25 to 20 per cent, reduction of bureaucracy for employees through the increase in the flat rate for income-related expenses, structural simplifications of tax law such as, in particular, the new codification of the Income Tax Act, and structural simplifications in payroll accounting and profit determination. In addition, the research premium will be extended, and measures to increase legal certainty and speed up the procedures will be taken.

The second stage of the tax relief for wage and income taxpayers will come into force in 2022 with the reduction of the second and third tax brackets from 35 to 30 percent and from 42 to 40 percent, as well as measures to make the business location more attractive, such as the reduction of corporate income tax or the extension of the profit allowance to € 100,000. There will also be abolition of minor taxes and creation of a uniform assessment base for non-wage labour costs.

“With this tax reform – and this is of particular concern to me as a former tax advisor – we are not only reducing the burden of taxes and levies on everyone, but also freeing people from bureaucratic overhead and governmental hurdles, by simplifying tax law and reducing the number of tax returns for entrepreneurs and employees by up to 460,000,” concludes State Secretary Fuchs.