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Investment growth premium 2017/2018

Austria
14 Mar 2017

Recently an investment growth premium (Investitionszuwachsprämie) for small and medium-sized enterprises as well as for large enterprises has been enacted. Due to the limited budget funds and the “first come, first served” principle, the application for the investment growth premium should be conducted as soon as possible, even if all details are not yet clarified.    

Type of enterprise Criteria Investment growth Premium
Small sized enterprises less than 50 employees and turnover or balance sheet total not exceeding EUR 10 Mio EUR 50k to EUR 450k 15%
Medium sized enterprises less than 250 employees and a maximum turnover of EUR 50 Mio or balance sheet total not exceeding EUR 43 Mio EUR 100k to EUR 750k 10%
Large sized enterprises more than 250 employees or turnover of more than EUR 50 Mio with a balance sheet total exceeding EUR 43 Mio EUR 500k to EUR 10 Mn 10%

2. Which investments are supported?

Through the premium the investment growth will be supported, which is calculated by comparing the planned ongoing investments with the average investments of the last three full fiscal years.   In general the investment growth has to be confirmed by a tax consultant or auditor.

Only investments in newly acquired capitalizable and depreciable fixed assets at Austrian locations are supported by the premium. Certain investment measures are not supported (e.g. real estate, automobiles or used assets).

3. When has the submission of the application to be conducted?

While small and medium-sized enterprises have to submit funding applications not later than 31. December 2018, the application deadline for large enterprises is currently limited by 31. December 2017. After issuing the funding agreement the investment measures have to be implemented within two years.

Due to the fact that the application has to be filed before the realisation of investments, the date of the first delivery, invoice, purchase contract or advance payments must be after the filing date of the application.

Although the corresponding directive has not yet been published, funding applications will be already accepted.

As the budget funds are limited and the processing is based on the order in which applications are submitted, investment measures should be analysed promptly.

4. Where has the application to be submitted?

The application has to be submitted to the Austria Wirtschaftsservice Gesellschaft mbH (aws). Enterprises of the tourism and leisure industry have to file their application at the Austrian Hotel and Tourism Bank (ÖHT).


Your Taxand contacts for further queries are:
Christoph Puchner
T. +43 1 533 86 33 905
E. christoph.puchner@taxand.at

Armin Obermayr
T. +43 1 533 86 33 500
E. armin.obermayr@taxand.at

Your global tax partner

Taxand's Take

The Taxand Austria team would be delighted to assist your company in this matter with regards to the following aspects:

  • eligibility to file applications
  • available fundings
  • tax consultant confirmation concerning the investment growth 

Taxand's Take Author

Armin Obermayr
Austria