Notifying the tax office

General Information

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

Enterprises Affected

Sole traders

Requirements

Cessation of trading activities

Deadline

Within a month of ceasing to trade.

Competent Authority

The competent body must be informed that the business has ceased to trade.

• For a natural person who is the sole proprietor of one or more businesses or business premises, that is the tax office of the place of residence^{German text}.
• For a taxpayer who is neither permanently nor ordinarily resident in Austria (whose tax liability is limited), that is the tax office of the place where the business premises are located or, if the business has no premises, the tax office^{German text} of the place where the taxpayer owns real estate. Otherwise the tax office^{German text} of the taxpayer’s last place of residence or the tax office first informed of the tax liability.
  

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.

Documents Required

• 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^{German text} – however, only if a decision has already been delivered (by the probate court or district court^{German text})

Expenses

No fees or charges are payable.

Additional Information

Sole proprietors retain their income tax^{German text} and tax reference 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 reference is then cancelled and the heirs receive a new tax reference if required.

The tax office will repay any credit balance.

Further links

• FinanzOnline^{German text}

Legal Basis

Einkommenssteuergesetz 1988

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:

allowance of EUR 7 300;

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 transaction for payment 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).

If the trading ceases and for this reason (parts of) buildings are transferred to personal assets, 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.

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, mobile phone signature, card-based citizen card system or EU login

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

Remedies

Not applicable

Auxiliary and Problemsolving Services

There are no assistance or problem-solving services.

Further service points

Tax Ombudsman of the Federal Ministry of Finance