{"id":16020,"date":"2022-12-29T22:18:35","date_gmt":"2022-12-29T21:18:35","guid":{"rendered":"https:\/\/huebner.virtuosen.at\/?p=16020"},"modified":"2023-04-20T22:19:05","modified_gmt":"2023-04-20T20:19:05","slug":"small-business-flat-rate-optimize-your-income-tax","status":"publish","type":"post","link":"https:\/\/huebner.virtuosen.at\/en\/small-business-flat-rate-optimize-your-income-tax\/","title":{"rendered":"Small Business Flat Rate \u2013 Optimize your Income Tax"},"content":{"rendered":"

Since 2020 a flat rate in income tax can be availed by a small business as long as the yearly net turnover is not more than \u20ac 35,000. Beginning in 2023, the turnover limit will be increased to \u20ac 40,000.<\/p>\n

This form of a flat rate is available for businesses with income from self-employed work or income from commercial enterprise wherein profits are calculated under the cash basis accounting.<\/p>\n

The flat-rate operating expenses amount to 45 % of the operating income up to \u20ac 18,900 max.\u00a0resp. 20 % of a service business up to \u20ac 8,400 max.<\/p>\n

Note: Significant shareholders and shareholder-managing directors, executive board members, supervisory board members, and foundation directors are exempted from this flat rate.<\/p>\n

The increased turnover limit of up to \u20ac 40,000 will not apply to those additional earned revenues which are not covered under the flat rate (for example income from renting and leasing).<\/p>\n

Example:<\/strong><\/p>\n

Author S. achieved turnover amounting to \u20ac 37,000 from his literary work and \u20ac 10,000 rental turnover for a total of \u20ac 47,000. The turnover from self-employed work are solely considered for the flat rate. Since it did not exceed the revenue limit of \u20ac 40,000, S. can utilize the flat rate.<\/p>\n

The increased revenue limit of \u20ac 40,000 can be used for the first time in the tax assessment for the calendar year 2023.<\/p>\n

Tip:\u00a0<\/strong>In any case, check if the income tax rate is beneficial to you, particularly in comparison to the basic flat rate or to a comprehensive cash basis accounting. For this matter, we are here to support you.<\/p>\n

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