The year 2024 is coming to an end. It’s high time to optimize your annual results for tax purposes! Dr. Karl Stückler, partner at BDO, shows measures with which you as an entrepreneur can easily save taxes.
“The classic methods of optimizing the tax assessment basis are half-yearly depreciation and the deduction of low-value assets (GWG),” explains the expert. If an asset is put into operation before the end of the year, half-yearly depreciation can be claimed, even if the invoice for the purchase is not paid until the following year. Fixed assets with acquisition costs of up to EUR 1,000 can optionally be written off immediately in full as GWG. Other topics that deserve your attention with regard to optimal design are the profit allowance, the (ecological) investment allowance and the deductibility of donations:
Profit allowance
Natural persons with business income are entitled to the profit allowance. A distinction must be made as follows: Up to a profit of EUR 33,000, an exemption amount of up to 15% of the profit applies (max. EUR 4,950), there is no investment requirement and the exemption amount is automatically taken into account in the tax return.
For a profit share between EUR 33,000 and EUR 583,000, the exemption amount is staggered (between 13% and 4.5% of the profit). However, it is linked to the purchase of wearable physical assets or certain securities with a normal useful life of at least four years. The purchase must take place in the year in which the claim is made and must be proven accordingly.
Investment allowance
The investment allowance (IFB for short) is available to natural and legal persons with business income, including corporations – unlike the profit allowance. The investment allowance is generally 10% of the acquisition or production costs. In principle, it can be claimed for all depreciable assets as long as the useful life is at least four years. For investments in the area of greening (e.g. photovoltaic systems, heat pumps, district heating devices and electric vehicles) the IFB increases to 15%.
The investment allowance is available for a maximum of EUR 1,000,000 per company and financial year for acquisition or production costs.
For example, no IFB is available for systems that use fossil fuels directly (e.g. oil heating) or that were purchased used. If the IFB is used for an asset, additional use of the investment-related profit allowance is excluded and vice versa. Therefore, pay attention to which of these two tax breaks is better in your case, if both are possible.
Partially or fully deductible donations
Donations from company assets to carry out research and teaching tasks (e.g. at universities), to museums as well as to the fire departments and the state fire brigade associations throughout Austria are tax deductible. The same applies to donations to associations and other institutions that pursue charitable or charitable purposes or collect donations for these purposes if they are recognized as a beneficiary institution and entered in the list of institutions receiving donations. Due to the general extension to non-profit status, which has been in effect since 2023, sports, education and youth support organizations can also benefit from donations. Donations are tax deductible up to a maximum of 10% of the profit before any profit allowance is taken into account.
Since August 1, 2024, tax concessions have been applicable to donations of food and non-alcoholic beverages to charitable organizations so that they do not trigger income tax and sales tax charges.
Disaster events
Expenses in connection with disasters (e.g. flood, mudslide or storm damage) are deductible as business expenses. This includes, in particular, the costs of eliminating the immediate consequences of a disaster, the costs of repairing and renovating damaged assets and the (partial) devaluation of company assets. It should be noted that tax-free donations from third parties reduce deductible expenses, even if they are only paid out in later years.
“In summary, there are a few ways to optimize the annual tax result. However, each individual case must always be considered in order to find the best solution,” emphasizes Karl Stückler.
BDO Tax Tuesday
Tax optimization at the end of the year – outlook for 2025.
Participation is free.
Datum: December 3rd, 2024, 9:00 a.m. – December 3rd, 2024, 10:30 a.m
Art: Lectures and discussions
Ort: Webinars
URL: https://events.teams.microsoft.com/event/10909587-9071-491d-8a32-850aad2d259a@5b08a87b-ccb1-42b6-8194-3add2b960bd3