If you want to open a company in Austria and need assistance, you can rely on the company formation services provided by our consultants who can also put you in touch with our accountants in Austria.
Austria is seen as Germany’s little sister because the two countries have pretty similar laws related to the formation of companies and foreign investments. However, being two separate countries Austria’ taxation system is quite different. Also, the accounting standards an Austrian company must meet are different. Taking into account that accounting is the most important part of running a business, most companies in this country outsource this part of the management to firms specialized in providing accounting services in Austria.
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Taxation in Austria
Among the accounting services available in Austria are those related to the calculation of the taxes a company must pay. When it comes to the corporate tax, an Austrian company is subject to a 25% corporate tax. Austrian branches of foreign companies are also subject to the same rate when it comes to taxation. However, foreign investors must know that Austria has signed numerous double taxation agreements which provide for significant reductions or exemptions from the income tax. This is one of the most important reasons why foreign shareholders in local companies require accounting services in Austria: so that they can consolidate their taxes and thus reduce the financial burden.
Our accountants in Austria can offer more information on the latest changes brought to the taxation system.
Accounting services for companies in Austria
If you decide to open a company and outsource the accounting of your business to a specialized firm, you will benefit from the following services:
- preparation of annual financial documents and balance sheets;
- tax consolidation;
- tax registration upon the incorporation of the company;
- preparation of periodic financial statements.
All accounting services available in Austria are tailored to the company’s needs, which is why it is worth considering a professional firm. You can also save money with the hiring of specialized accountants in Austria.
Tax and VAT registration services in Austria
Accounting enters the attention of business owners in Austria right from the beginning or, better said right upon company registration, as the company must apply for a tax identification and VAT number.
Tax registration is completed as part of the Austrian company formation procedure, while the value added tax number can be obtained voluntarily as it can help them in import-export activities and can also lead to certain financial benefits, such as refunds for eligible VAT-related operations.
Our accountants in Austria are at the service of foreign investors who open companies in this country and are looking for specialized services in order to comply with the requirements imposed by the Ministry of Finance.
If you have any questions on accounting in Austria, our specialists can guide you.
Bookkeeping as part of accounting in Austria
Bookkeeping is one of the essential parts of the accounting in a company in Austria as it covers the registration all invoices and daily accounting papers entering and exiting a firm.
Bookkeeping also refers to maintaining all the financial records of a company up to date in an easy and accurate manner. This is why this part of accounting in Austria can be handled by a specialist. We can help with the following accounting documents:
- issuance and registration of sale and purchase invoices;
- maintenance of accounting records;
- reconciliation of accounts;
- maintenance of general ledgers.
If you need bookkeeping services, our accountants are at your service with tailored packages in order for you to choose in accordance with the size of your business.
Accounting is one of the most important parts when running a business in Austria, this is why it should be kept separate from other activities that have to do with the management of a company. This is also why many domestic firms usually externalize the accounting department with outside accountants.
Our accountants in Austria can offer more information on our bookkeeping services.
Financial documents and balance sheet preparation in Austria
When registering a company in Austria, the business owner must select the financial year which can be the calendar year or a different period. Generally speaking, for the first year of activity special financial document preparation timelines apply, however, the balance sheet and the annual financial statement are the most important papers a local business must file with the tax authorities and the Trade Register.
These must be drafted in accordance with the Generally Accepted Accounting Principles (GAAP) or the International Financial Reporting Standards (IFRS). However, it should be noted that starting with 2005 Austria has adopted the IFRS as the main regulations for the preparation of the annual financial statements. These standards are mandatory for European and publicly traded companies.
As part of the services we provide related to accounting in Austria, annual financial statement and balance sheet preparation is one of the most important.
Here are the most important highlights of this important accounting parts in an Austrian company:
- these must be drawn up within the first 5 months of the financial year for the past year;
- they need to be accompanied by notes and an annual report;
- they must then be audited by an external auditor;
- they must be approved during a shareholders’ general meeting no later than 3 months after their preparation;
- they must be filed with the Companies Register no later than 9 months after the balance sheet date.
In order to meet the deadlines imposed by the law and to avoid penalties, you can rely on our accountants in Austria.
Special accounting services for small companies in Austria
The term “small company’’ is more and more presented on the entire European market even if every country imposes its own requirements. In Austria, these imply meeting at least two of the following criteria:
- they have a maximum number of 50 employees;
- they own assets of no more than 5 million euros in two consecutive years;
- they have a turnover of no more than 10 million euros in two consecutive years.
There is also the concept of micro-enterprise which does have more than 10 employees, 350,000 euros in assets, or 700,000 euros in turnover in two consecutive years.
For these, the accounting requirements are less stringent, and our specialists can tailor them to the need of the owner. Moreover, choosing to work with an independent accounting firm in Austria can lead to significant reductions in company costs as there will ne no need to create a department that handles this aspect.
If you need information or have any questions about how we can help with the accounting in your company in Austria, do not hesitate to send us an email. For complete information on the accounting services provided in the country and for company incorporation services in Austria, please contact us.