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Nexia Ebner Stolz

Tax Advice

Flat-rate reduction of advance tax payments made for 2019

Taxpayers may apply for a reduction of income or corporation tax prepayments for the 2019 assessment period on the basis of a lump-sum loss carryback from 2020.

Ini­tially, the BMF let­ter of 24 April 2020 pro­vi­ded for a flat-rate loss car­ry­back in the case of a per­son lia­ble to income tax or cor­po­ra­tion tax. With the Second Corona Tax Assi­s­tance Act, which was pub­lis­hed in the Federal Law Gazette on 30 June 2020, legal regu­la­ti­ons have now been intro­du­ced which pro­vide for a reduc­tion of income or cor­po­ra­tion tax pre­pay­ments for 2019 as a result of a lump-sum loss car­ry­back sub­ject to the fol­lo­wing con­di­ti­ons:

  • The tax­payer sub­mits a writ­ten or elec­tro­nic app­li­ca­tion to have the total taxable income for 2019 redu­ced by 30 % when asses­sing the advance pay­ments for 2019. Howe­ver, this does not apply as far as the total income inclu­des income from non-inde­pen­dent acti­vi­ties.
  • The advance pay­ments for 2020 have already been redu­ced to EUR 0.

Note

If a hig­her loss in 2020 can be sub­stan­tia­ted, which is to be car­ried back into the 2019 bud­get, the hig­her amo­unt can be taken into acco­unt when cal­cu­la­ting the advance pay­ments for 2019. The esti­ma­ted loss car­ry­back ser­ves only to sim­p­lify mat­ters but shall not cut off the path that has already exis­ted up to now.

The loss car­ry­back from 2020, which is already to be taken into acco­unt in the deter­mi­na­tion of the advance pay­ments for 2019, is limi­ted to the maxi­mum amo­unt of a loss car­ry­back of EUR 5 mil­lion (or EUR 10 mil­lion in the case of a joint assess­ment of spou­ses) envi­sa­ged for the invest­ment periods 2020 and 2021.

If the tax rate is then fixed for the 2019 tax assess­ment period, a pro­vi­sio­nal loss car­ry­back for 2020 can be taken into acco­unt. This must then be adjus­ted to the actual loss situa­tion in 2020, and the assess­ment for 2020 and the tax rate for 2019 must be adjus­ted accor­din­gly. If this results in a sub­se­qu­ent tax pay­ment for 2019, an inte­rest lia­bi­lity will be for­fei­ted in prin­ciple.

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