Blümel: Corona help for the economy is working: 90 per cent of businesses do not need the special Covid-19 instalment payment facility
Tax revenue worth EUR 887 m has been authorised for “Covid-19” repayment in instalments - A total of 31,000 applications have been received by the Federal Ministry of Finance (BMF)
The deadline for applications to join the generous COVID-19 instalment payment model, including the “safety car” phase, was reached on 30 June 2021. A mere 10 % of the eligible businesses/ individuals have availed themselves of the support measure - that is, some 31,000 businesses and private individuals. More than two-thirds of the applications for the instalment payment facility have already been accepted: this equates to a volume of around EUR 887 million.
Finance Minister Gernot Blümel commented: “The first conclusions to be drawn from the COVID-19 instalment payment model indicate that the Corona support offered to Austrian business has provided assistance exactly where it was needed. Some 90 per cent of taxpayers have not applied for this liquidity support and are by now again operating in the regular economy. That is a good sign, and the gratifying upturn in the economy is thus reflected in these figures too.”
Austrian taxpayers were able, between 10 and 30 June 2021, to apply to join a specially developed instalment payment model, including a “safety car” phase, to tackle the tax arrears that had been caused by the corona crisis. The “safety car” phase means that only a minimal amount is to be paid in the first three months, so as not to overwhelm businesses starting up again. Some 335,000 letters were sent out by the BMF to entities affected and some 31,000 instalment payment applications were submitted. Roughly 92 per cent of the applications received have come from businesses, and 8 per cent from private individuals.
All taxpayers who were in arrears on their tax payment accounts but did not register with the tax office by 30 June 2021 will be successively audited from mid-July onwards. Thereafter payment demands will be sent out, based on the date on which the tax arrears actually fell due.
Blümel: “The instalment payment model is certainly proving itself to be spot-on, as only the businesses struggling with a liquidity squeeze have applied. Overall it is becoming clear that the help for the economy is working and that the Austrian economy is now experiencing a very rapid upturn. We will not leave any business out in the cold. That is why we are helping with liquidity with our instalment payment model and “safety car” phase. We are ensuring that, for entities with a sound business model, their tax debt will not stand in the way of their recovery.”