Notifying the tax office – sole proprietorship

General information

The tax office (→ BMF)^{German text} must be informed if a business activity ceases, regardless of the reason.

Enterprises affected

Sole traders

Requirements

Cessation of trading activities

Deadlines

Within a month of ceasing to trade.

Competent authority

The tax office (→ BMF)^{German text} must be informed that the business has ceased to trade.

Procedure

Notifications can be made to the Tax Office at the same time as submitting the necessary documentation. This can be done in person, by post, by fax or via FinanzOnline.

Required documents

• informal letter or
• form Verf25 (questionnaire on the cessation of a commercial or professional activity)
• on the death of the entrepreneur: also
  • decision on the transfer of title to the estate – however, only if a decision has already been delivered (by the probate court or district court (→ BMJ)^{German text})

Costs and fees

No fees or duties are payable.

Further information

Sole traders retain their income tax and tax number after their death. The tax office collects the outstanding tax payments on the date of death at the end of the relevant calendar year. The tax number is then cancelled and the heirs receive a new tax number if required.

The tax office will repay any credit balance.

Further links

• FinanzOnline (→ BMF)^{German text}

Legal bases

Einkommenssteuergesetz (EStG)

Expert information

In the event of disposal of a company or cessation of trading, gains on disposal or cessation must be determined and, in principle, are taxable according to the marginal income tax rate.

The following, alternative, tax advantages are available:

• tax allowance of 7,300 Euro;
• distribution of the gains on disposal over 3 years (if 7 years have elapsed since the start of trading or the last transaction for payment);
• reduced tax rate (if 7 years have elapsed since the start of trading or the last paid acquisition and on one of the following grounds: the taxpayer has died, is unable to work because of a physical or mental disability or has reached the age of 60 and is no longer working).
• After 30 June 2024, properties are removed from the business assets at book value. If the trading has ceased and for this reason (parts of) buildings have been transferred to personal assets before 1 July 2024, on request, the hidden assets relating thereto are not recorded if the building has been the taxpayer’s main residence until trading ceases and the taxpayer dies or is unable to work because of a physical or mental disability or has reached the age of 60 and is no longer working.

Link to form

• Form Verf25^{German text} (questionnaire for the cessation of a commercial or professional activity)
• FinanzOnline (→ BMF)^{German text}

Authentication and signature

Electronically: registration via FinanzOnline (→ BMF)^{German text} with login details, ID Austria (→ id-austria.gv.at)^{German text} or EU login

In writing: by informal letter or by sending a signed and completed form

Means of redress or appeal

Not applicable

Assistance and problem-solving services

There are no assistance or problem-solving services.

Further service points

Tax Ombudsman of the Federal Ministry of Finance (→ oesterreich.gv.at)^{German text}