COVD-19 Update

To mitigate the economic impact on Austrian companies caused by the COVID-19 pandemic, the Austrian Federal Government has implemented several support measures and subsidies. In the following we provide a short overview of key current measures:

1. COVID-19 instalment model

a) Deferral of tax payments

To prevent financial difficulties arising due to tax liabilities, it was possible to request a so-called COVID-19 instalment payment model until 30 June 2021. The payment plan consists of two phases in which flexible, but appropriate instalments can be agreed. In phase I (from July 2021 until September 2022), 40% of the due tax debts need to be paid in order to also be able to submit a request for phase II (from October 2022 until June 2024). In addition, no payment deadlines must be missed in phase I. Requests for phase II need to be submitted by 31 August 2022. The amount of the instalments can be adjusted once in each phase.

The deferral interest rate is reduced from 4.5% to 2% above the base interest rate until 30 June 2024. This leads to a current effective interest rate of 1.38%.

For the tax years 2019 and 2020, no claim interest is levied by the tax authorities. A surcharge for late payment is levied for tax claims due after 30 June 2021. For tax claims that were due between 15 March 2020 and 30 June 2021, no surcharges for late payments were levied due to COVID-19.

b) Deferral of social security contributions

It was possible to defer social security contributions (SSC) for the periods February 2020 to May 2021 until 30 June 2021 (initially, in some cases, even without an application and without deferral interest rate being charged). SSC due to financial support payments in connection with short-time working or COVID-19 ‘at risk’ groups were excluded from the deferral privileges.

For SSC periods beginning in June 2021, the former statutory payment periods and due dates will apply again. If COVID-19-related liquidity shortfalls continued to exist after 30 June 2021, it was possible to agree instalment payments, also as part of a 2-phase payment model. In the first phase, instalment payments are possible until 30 September 2022. Applications had to be submitted to the ÖGK by 15 July 2021. A reduced deferral interest rate (1.38% instead of 3.38%) applies. If, in the instalment period from 1 July 2021 to 30 September 2022, at least 40% of the due SSC from the periods February 2020 to May 2021 have been paid and no payment deadlines have been missed, a further instalment agreement can be requested in the second phase lasting from October 2022 until 30 June 2024. This request must be made no later than 30 September 2022. In this second phase, unreduced interest rates of 3.38% are due. The applicant must provide credible evidence that the remaining contributions can be paid within the requested total instalment payment period.

2. COVID-19 subsidies

a) Fixed costs subsidy

The fixed costs subsidy covers fixed costs for companies that suffer a revenue shortfall of at least 40% due to the COVID-19 pandemic and cumulatively fulfil the eligibility criteria listed in the guidelines on the fixed costs subsidy. The subsidy covers fixed costs resulting from domestic operations incurred in the period from 16 March 2020 to 15 September 2020 (for a maximum of 3 consecutive months) and which fulfil the criteria listed in the guidelines on the fixed costs subsidy.

The subsidy is granted at different rates (25%, 50% or 75%) depending on the percentage of revenue shortfall compared to 2019. The fixed costs subsidy per company is limited to a maximum of EUR 90m for a subsidy for 75% of fixed costs, EUR 60m for a subsidy for 50% of fixed costs and EUR 30m for a subsidy for 25% of fixed costs.

Applications can be made in the period 20 May 2020 to 31 August 2021 via FinanzOnline only.

b) Fixed costs subsidy 800,000

The fixed costs subsidy 800,000 covers fixed costs for companies that suffer from a revenue shortfall of at least 30% due to the COVID-19 pandemic and cumulatively fulfil the eligibility criteria listed in the guidelines on the fixed costs subsidy 800,000. The fixed costs must have been incurred between 16 September 2020 and 30 June 2021 at the latest (up to a maximum of 10 assessment periods, although 2 blocks of consecutive assessment periods are possible).

A further difference to the fixed costs subsidy is, that the percentage of the fixed costs subsidy corresponds to the percentage of the revenue shortfall (e.g. in case of a revenue shortfall of 70%, the fixed costs will be compensated at 70%). The maximum amount of this subsidy is EUR 1.8m per company.

Applications can be made in the period 23 November 2020 to 31 December 2021 via FinanzOnline. If the applicant company claims the fixed costs subsidy 800,000, no compensation for losses (see below) can be granted.

c) Compensation for losses and extension of scheme

This subsidy compensates the applicant company for losses incurred from operational activities in Austria between 16 September 2020 and 30 June 2021 at the latest (up to a maximum of 10 consecutive assessment periods). The compensation for losses is granted for a revenue shortfall of at least 30%. The amount of the compensation for losses is 70% of the calculated assessment base (90% for small or micro-businesses) and is limited to EUR 10m per applicant company.

Applications can be made in the period 16 December 2020 to 31 December 2021 via FinanzOnline only. If the applicant company claims the compensation for losses, no fixed costs subsidy 800,00 can be granted.

The compensation for losses was extended for companies with a revenue shortfall of at least 50% in the period between 1 July and 31 December 2021. The amount of the compensation and the maximum compensation are unchanged.

The application for the compensation for losses extended can be submitted via FinanzOnline in the period 16 August 2021 to 30 June 2022.

d) Revenue shortfall bonus and revenue shortfall bonus II

The revenue shortfall bonus comprises a bonus and, optionally, an advance payment of the fixed costs subsidy 800,000. The revenue shortfall bonus can be applied for each calendar month in the period from November 2020 to June 2021. Eligible are companies that suffered a monthly revenue shortfall of at least 40%. The revenue shortfall bonus amounts to 30% of the revenue shortfall in the selected period under consideration (comprised of 15% bonus and 15% advance payment of the fixed costs subsidy 800,000), up to a maximum of EUR 60,000 per calendar month in total (for March and April higher rates applied).

Applications for the revenue shortfall bonus for June 2021 can be made until 15 September 2021 via FinanzOnline.

The revenue shortfall bonus II is the prolongation of the revenue shortfall bonus for the months July to September 2021. The revenue shortfall bonus II requires a monthly revenue shortfall of at least 50% and is limited to EUR 80,000 per month. The amount of the revenue shortfall bonus II is based on the revenue shortfall during the assessment period, multiplied by industry-specific substitute rates (between 10% and 40%). The revenue shortfall bonus II does not include an (optional) advance payment of the fixed cost subsidy 800,000.

Applications for the revenue shortfall bonus II can be submitted via FinanzOnline from the 16th day of the calendar month following the assessment period until the 15th day of the fourth calendar month following the assessment period (e.g. applications for July can be filed between 16 August 2021 and 15 November 2021).

e) COVID-19 investment premium

The COVID-19 investment premium was intended to create an incentive for corporate investments to counteract the reluctance of Austrian companies to invest due to the COVID-19 pandemic. Funding is provided for new investments (that must be capitalised) in tangible and intangible assets subject to depreciation/amortisation of a company at Austrian locations.

The standard rate is 7% of the acquisition costs of new investments, the rate increases to 14% for new investments in the innovative areas of greening, digitalisation, health and life sciences. The maximum eligible investment volume is EUR 50 million (excl. VAT) per company or corporate group. Applications were possible until 28 February 2021.

The applicant company has to submit a final bill of costs (“Endabrechnung”) to the aws for the investments made no later than 3 months (exception: statements submitted by 30 September 2021 are not subject to a deadline) after the last date of start of use and payment of the investments to be subsidised under the terms of the subsidy approval.

Contact for Deferral of tax payments: Valentin Strasser / Mario Wegner
Contact for Deferral of social security contributions: Daniela Messner
Contact for COVID-19 Subsidies: Alexandra Velic / Margarete Kinz