Area: Finance
Competent authority: MF
EZU URL: .nan
Initiative ID: 536
Initiative accepted and completed: '2015-05-05'
Initiative classified in EZU: .nan
Initiative forwarded in response: '2015-04-10'
Initiative published: '2015-04-10'
Initiative submitted: '2015-04-08'
Response from the competent authority: "Response from the Ministry of Finance:The\
  \ recommendation or initiative is unclear, and we will therefore reply on the assumption\
  \ that the recommendation relates to a simplified method of determining the taxable\
  \ amount of income tax (personal income tax) on the income of natural persons carrying\
  \ on an activity in Austria.The established Slovenian system of determining the\
  \ tax base by means of personal income tax also gives the taxpayer the possibility\
  \ to opt for a simplified method of determining the tax base (determination of the\
  \ tax base by taking into account actual income and normalised expenses), provided\
  \ that certain conditions are met. With the amendment of the legislation in 2012\
  \ (effective from the 2015 tax year), this system was substantially modified with\
  \ the aim of further relieving small businesses of the administrative burden of\
  \ complying with their tax obligations and increasing their legal certainty, combined\
  \ with greater certainty as to the determination of the tax base. The system in\
  \ Austria has also been examined in the search for possible solutions. It was found\
  \ that their system is complex and disaggregated (also historically conditioned)\
  \ and therefore unsuitable for direct transposition in view of the stated objectives\
  \ of additional administrative simplification.The Austrian system is identical to\
  \ the system in Slovenia in its basic concept, namely that it gives the possibility\
  \ of a flat-rate only on the expenditure side, while revenue is not determined in\
  \ a flat-rate amount.The Austrian system is similar to the Slovenian system in its\
  \ basic concept, namely that it gives the possibility of a flat-rate only on the\
  \ expenditure side, while revenue is not determined in a flat-rate. However, there\
  \ are differences in the individual elements of the system, namely the conditions\
  \ for entry into the system, the amount of normalised expenses, the possibility\
  \ of claiming also actual expenses, the possibility of claiming tax deductions,\
  \ the method of revenue recognition.Briefly, the system in Austria (source IBFD\
  \ as of 1 February 2014): taxable persons who meet the conditions for the application\
  \ of the simplified method of determining the tax base (they are not obliged to\
  \ keep business books and do not do so voluntarily) are entitled to the simplified\
  \ method of determining the income tax base, subject to the following additional\
  \ conditions: the previous year's revenue does not exceed 220.Under this method,\
  \ income or profit is determined by applying normalised costs instead of actual\
  \ costs and only the exact actual costs specified. Normalised costs are set as a\
  \ percentage of revenue and generally amount to 12% of revenue. However, taxable\
  \ persons carrying out specific activities (e.g. teaching, scientific, consultancy,\
  \ property management) may only claim normal costs of 6% of their income.The normal\
  \ costs may not exceed 12% or 6% of \u20AC220,000. In addition to the normal costs,\
  \ these taxable persons may claim the following actual costs: cost of sales, cost\
  \ of raw materials, cost of intermediate products and wages and salaries (including\
  \ social security costs).In addition to the above, specific requirements for the\
  \ use of the simplified cash method are laid down for individual activities by a\
  \ regulation of the Federal Ministry of Finance (e.g. In Austria, the concept of\
  \ synthetic or global taxation of all income of a natural person (including income\
  \ from business activities) with a single tax, i.e. income tax, at progressive tax\
  \ rates and subject to certain tax deductions, is in principle established.In the\
  \ case of the Austrian tax system, the concept of taxation of income of natural\
  \ persons is applied in principle.The tax system is based on a single tax, i.e.\
  \ income tax, at progressive tax rates and subject to certain tax deductions. On\
  \ this basis, also natural persons carrying on a trade can benefit from general\
  \ reliefs and also from certain reliefs linked only to the trade.Given the above-mentioned\
  \ basic features of the Austrian system, it is difficult to make a generalised claim\
  \ that entrepreneurs would be generally relieved by such a scheme. However, as already\
  \ indicated, the system is more complex, but it allows the tax base to be determined\
  \ in a way that takes greater account of the differences between the various activities\
  \ and thus a greater degree of compliance with the principle of taxing according\
  \ to the economic strength of the individual taxable person and thus treating taxable\
  \ persons in roughly the same situation equally.As mentioned above, the current\
  \ system in Slovenia has only been in place since the 2013 tax year, with adjustments\
  \ applicable from the 2015 tax year onwards (change in the entry conditions and\
  \ increase in the normalised expenditure from 70% to 80%). However, the adequacy\
  \ of the current regime for the taxation of the income of natural persons carrying\
  \ out an activity will also be examined in the context of the planned objectives\
  \ in the area of the tax system as a whole."
Text file: 536.txt
Title: Flat-rate billing
URL: https://www.stopbirokraciji.gov.si/pobuda/?st=536
