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IMPORTANT THINGS YOU SHOULD KNOW

QUESTIONS AND ANSWERS

• Who Is A Tax Advisor?
  • More than 100 years have passed since the first tax advisers appeared. The increasing complexity of legislation, the constantly changing business environment and the competitive nature of the market economy have all led to the emergence of a special profession called a “tax consultant” – which is considered to be promising and highly rewarding in today’s s world. Today, a “tax consultant” is a highly qualified specialist who takes into account all the legal nuances when developing recommendations on tax optimization. He or she is both a lawyer and an economist and can advise clients on issues such as corporate management, finance, business law, taxation, accounting, contract drafting and more. The tax consultant also represents the interests of
    a business or individual client before the tax, customs and other authorities.
• What Do I Need To Prepare Before Registration Of A Legal Entity?
  • To register a legal entity in Austria, we recommend choosing a registration agent – it could be a company or a specialist who provides full or partial support to the process. In case of full support, you will initially only have to provide the details of the founders, scanned copies of your personal documents (passport and address) and the name of the future company, which has to be checked by a notary before it can be used. It is better to prepare a list of possible names to choose the one that can be used in the region (in our case in Vienna). Next, the agent prepares all the necessary papers, namely the memorandum of association (translated if the founders do not speak German), in which the decisions of the founders and all data are carefully documented. The next stage is the signing of the agreement at the notary’s office. If the agent provides full support, all this will be organized by him, and the founders only need to appear at the appointed time and place to sign it. In case the founders are foreigners and do not speak German, the process must be carried out with the assistance of a legally certified interpreter, who will also sign the documents. Thereafter, the share capital of the company is paid in. Usually the registration agent arranges for the company account to be opened by this time immediately after the incorporation documents have been signed. In this case, the share capital can be paid in immediately after the documents have been signed. However, this procedure is entirely dependent on the policy of the chosen bank, which may require time for verification of documents or at the last moment refuse to open an account for the company with foreign investors during the registration process. If the account was opened successfully after signing the documents, the share capital can be transferred to the account, and it becomes active immediately after receiving the confirmation of registration (in at least 3-4 weeks). Money is not blocked in the account and can be used for the company’s needs after registration.
  • Next is the registration of the act of incorporation with the Registry of Legal Entities, including the bank’s confirmation of the payment of the share capital. This stage is also carried out by the agent, who, together with the notary, ensures that all necessary documentation is created and transmitted to the court, which subsequently examines the documents and makes a decision. Thus, if the registration agent has been correctly selected, the founders need to submit their primary data and scanned copies of relevant documents, check the final version of the memorandum of association, appear at the signing of the contract before the notary and deposit the share capital. Everything else is provided by the agent, who carefully discusses with the founders the procedure, timing and cost of such a package before starting work.
• What Are The Specifics Of Payroll Accounting In Austria And Staff Accounting In General?
  • Payroll accounting for employees (Personalverrechnung) in Austria is a very important, demanding and at the same time very complex area of financial accounting. Suffice it to say that the annually published Manual for the Calculation of Practical Salaries consists of 1,483 pages, not counting the
    innovations after each tax reform. The salary an employee receives on hand (Netto) is only a part of what the employer spends. Monthly deductions for social security (Sozialversicherung) and income tax (Lohnsteuer) are made from the salary stated in the contract (Brutto) – the higher the salary, the more progressive the tax rate. In addition to the salary, the employer also pays a contribution of at least 30 % to the social security authorities, the Finance Department and the Magistrate’s Office on behalf of the employee. The form of employment (full-time or part-time) and the type of
    employment relationship (permanent or freelance, fee-based) are taken into account. But it is not only the calculation of salaries and deductions on the part of the employee and employer that are part of the tasks of specialists in this field. Here it is important to mention the timely registration of new employees before they start their employment and their correct de-registration at the end of their activity, as well as all the nuances of calculating other regular or one-off payments, calculating termination payments based on time worked, holiday pay and sick pay. In addition, the payroll specialists, together with lawyers and tax lawyers, check the employment contract for compliance with Austrian law and are the contact persons for employees and employers in questions of employment law. As a rule, small and medium-sized businesses, due to the complexity and time-consuming nature of this function, prefer to outsource the calculation of employee salaries, taxes and obligatory deductions. For this purpose, they turn to the services of experts.
• Once You Have Established A Company In Austria, The Question Inevitably Arises – How And When Do You Start Bookkeeping There?
  • If you decide to postpone this step to “later” and wait for the first clients, it is a big mistake!
  • All legal entities, commercial and non-commercial organizations, must take care not only of the tax registration, but also of the bookkeeping in advance. Legal entities and self-employed persons in Austria that are entered in the commercial register must keep accounting records. If the company has employees, it is compulsory to pay monthly salaries, taxes and social security and pension insurance contributions according to a special scheme. The accounting system is always subject to changes in legislation, so hiring professionals to provide this type of service is the best solution.
  • There are many advantages of such accounting outsourcing, because it not only saves money (accounting costs can reduce your company’s taxable base) but also saves time and space. In addition, the firm to which you outsource your bookkeeping, works continuously and has a team of highly skilled experienced professionals
• Why do I need an Austrian residence permit?
  • Respect and freedom
  • If you take out a residence permit, you will receive a Red-White-Red Card (RWR-Card). This will increase your status and the loyalty of the officials. It will make it easier for you to build up a trusting relationship with partners, clients and public authorities. You will not have to hire a nominee director. You will obtain a trade licence in your own name, get rid of intermediaries and get freedom to make decisions, open accounts and negotiate. Expanding your business (starting a company in Austria) Companies resident in Austria are highly regarded around the world. It will be easier for you to find partners and take your business internationally. Austrian taxation allows the profits of related businesses to be combined profitably. You can optimize your taxes and obtain credit at advantageous interest rates
  • Family safety
  • Your entire family can benefit from a residence permit. Your children will go to school or kindergarten free of charge. Your spouse will get a work permit, and you can apply for a job in any company in your field. The whole family will have good health insurance. If someone falls ill, you can get prescriptions for almost free medicine.
  • Own real estate
  • Without a red and white card, you can only buy property in Vienna in theory. In practice, you will pay huge legal fees and waste a lot of time. You will find it difficult to transfer money, and it will be impossible to get a loan at all. A residence permit will enable you to choose a house in a good neighbourhood with excellent infrastructure and pleasant neighbours. You can buy a flat or house where your family will enjoy living. We have more than 20 years of experience in helping business people start a company, obtain a residence permit and relocate to Europe. With our Steuerexperten consultants, you can easily complete the paperwork and get your Austrian residence permit in just 3 months. 
  • 4 Steps to an Austrian residence permit
  • Application. Call or leave a request online. We will contact you and discuss all the details.
  • The decision. We shall carefully study your situation and propose the best program of business immigration.
  • The preparation of documents. We shall prepare all necessary documents. We will process them within three months.
  • The result. A positive decision will result in the Austrian Red and White Card. It is important to plan your business immigration well in advance and obtain a residence permit before registering your company. Submit your application and find out how to save time and money.
• GmbH Lifehacks:
  • The director of the company must be a person who is registered and living in Austria – this is important. Otherwise, the court may refuse to register the company.
  • There can be 1 or more directors in a company. They can represent the company independently or jointly on the principle of “collective signature rights”.
  • A 100% shareholder may not be an employee of the company. Employment is possible with an equity interest of up to 25%.
  • In GmbH, accounting is done by double-entry system – double-entry bookkeeping. And at the end of the year a balance sheet, a profit and loss account as well as two tax returns are prepared – for corporation tax and VAT.
  • The fixed rate of income tax (corporation tax) is 25% and the minimum is 1750 euros, even in the case of a loss-making year.