Income from agriculture and forestry (Austria)

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In Austria, income from agriculture and forestry is one of the business types of income. This includes income from agriculture and forestry ( Section 21 EStG ), income from self-employed work ( Section 22 EStG ) and income from commercial operations ( Section 23 EStG ). The Income Tax Act (EStG) is to be applied and in particular margin numbers (margin nos. 5001 to 5188 of the Income Tax Guidelines 2000).

General

The definition by the Administrative Court reads: " In the income type agriculture and forestry, income from the production of plant and animal products is recorded with the help of natural forces. There must be a minimum of relationship to the land. " (VwGH March 19 1985, 84/14/0139)

In particular, income from agriculture and forestry includes:

  • Agriculture
  • forestry
  • Viticulture
  • Gardening, vegetable and fruit growing
  • Animal breeding and conservation company
  • Freshwater fishing
  • Fish farming
  • hunt

For the sub-areas listed, there are also special standards that must be taken into account when determining taxable profits . Profits from the sale of a business, part of a business or a share in the business also count as income from agriculture and forestry.

The income from ancillary operations ( substance operations , e.g. crushed stone mining, and recycling operations , e.g. sawmills) are also to be added to income from agriculture and forestry, if the annual income does not exceed € 33,000 including VAT. Other secondary activities (e.g. logging for third parties, snow removal as a service provider, etc.) must also be taken into account here - if the total annual income exceeds the limit of € 33,000, income from commercial operations is available from the first euro .

Types of profit determination

Most often, the unit value of the company is used as the basis for calculation. The unit value is reduced by the leases and increased by the leases. Depending on the level of the unit value, various forms of assessment are selected:

  1. The full flat rate
  2. Income-expenditure calculation (partial flat rate)
  3. Accounting

In order for the flat rate methods to be used, the previous year's turnover must not exceed EUR 220,000 (for forestry EUR 250,000). The taxpayer has to choose a profit method for the entire business. The Flat Rate Regulation 2011 applies.

Full flat rate

If the unit value is less than or equal to 100,000 euros and there is no accounting obligation according to § 125 BAO and books are not kept voluntarily, then the taxpayer has the option of a full flat rate according to § 17 (4) EStG . If the requirements are met, the agricultural and forestry business can apply the average rate of 42% of the relevant unit value as profit. The operating income and expenses are basically insignificant with this form. Additional flat-rate expenses that can be claimed are:

  • social security contributions paid to the social security institution
  • Rent (no more than 25% of the unit value applicable to the leased area)
  • corporate debt interest
  • Delayed and
  • exceptional crop failures and livestock losses (only until 2010)

The taxpayer must explicitly state that he would like to make use of the flat rate.

Income and expenditure account

If the unit value is between 100,000 and 150,000 euros, the partial flat rate can be used. This also applies to agricultural and forestry operations with the option of the social security contribution basis according to § 23 (1a) Farmer Social Insurance Act with a unit value of less than 100,000 euros, and if the pure forestry unit value exceeds 11,000 euros. If these prerequisites apply, the profit is determined according to § 4 (3) EStG income-expenditure calculation, i.e. H. the calculation basis will be the turnover generated from the operating income to be recorded. The taxpayer can use 70% of his actual operating income as operating expenses.

Exceptions to this are extraordinary operating income and separately authorized expenses such as:

  • Expenses for the receipt of goods and raw materials according to § 128 BAO ,
  • Expenses for wages (including ancillary wage costs) insofar as these are directly attributable to the business object
  • Contributions within the meaning of Section 4, Paragraph 4, Item 1 (social security expenses)

If the taxpayer changes from the general statement of the business expenses to the individual statement, he has to keep this form for at least five financial years.

The taxpayer can opt from the full flat rate to the partial flat rate, but is again bound by this decision for five financial years. Tax advisors recommend calculating the flat-rate options before making any assessment.

Accounting

If the unit value exceeds 150,000 euros or if the turnover exceeds 550,000 euros in two consecutive calendar years, a profit determination must be carried out in accordance with Section 4 (1) EStG . § 125 BAO taxpayers who are obliged to keep accounts or who do so voluntarily may apply for a financial year that differs from the calendar year.

Differentiation from commercial enterprise

If sales are also generated from purchased products within the framework of a main agricultural operation, then a uniform agricultural operation is to be assumed even if the purchase value of the purchase of third-party products does not exceed 25% of the sales of this operation. § 30 (9) BewG If the value exceeds 25%, there is income from a commercial enterprise according to § 23 EStG. The same applies to purchased primary products (direct marketers).

Demarcation problems arise from renting guest rooms, any ancillary operations (e.g. sawmill, dairy) and commercial animal husbandry.

Individual evidence

  1. ^ Werner Doralt / Hans Georg Ruppe: Tax Law . Vol. I. 10th edition Manz Verlag, Vienna 2012 ISBN 978-3-214-05121-1 p. 40.
  2. ↑ BMF: Income Tax Directive 2000 , margin no.4142
  3. ↑ BMF: Income Tax Directive 2000 , margin no. 4102
  4. ↑ BMF: Income Tax Directive 2000 , margin no.5027
  5. ↑ Federal Law Gazette II No. 471/2010 : Package Regulation 2011
  6. ↑ BMF: Income Tax Directive 2000 , margin no. 4140
  7. ↑ BMF: Income Tax Directive 2000 , margin no.4147
  8. ↑ BMF: Income Tax Directive 2000 , margin no.4166
  9. ↑ BMF: Income Tax Directive 2000 , margin no.4117 ff
  10. ↑ BMF: Income Tax Directive 2000 , margin no.4119 ff
  11. ↑ BMF: Income Tax Directive 2000 , margin no.4126 ff
  12. ↑ BMF: Income Tax Directive 2000 , margin no. 4133
  13. ↑ BKS tax advice, LuF package regulation 2011 - LuF package regulation 2006 - a comparison: What is new? ( Memento of the original from January 22, 2011 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.wt-bks.at
  14. ↑ Marian Wakounig, Franz Labner: income tax , LexisNexis, Vienna 2008, ISBN 978-3-7007-3927-2 , page 70
  15. ↑ BMF: Income Tax Directive 2000 , margin no.5061
  16. ↑ BMF: Income Tax Directive 2000 , margin no.5045 ff