Austria Accords Tax Relief For Flood Victim Support
07 June 2013
Posted by: Author: Ulrika Lomas
Author: Ulrika Lomas
The Austrian Finance Ministry has unveiled details of a raft of tax relief measures, aimed at supporting the country’s flood victims, as well as reducing the tax burden on individuals wishing to express their solidarity, in the form of generous donations.
Any voluntary contributions or donations received to assist in clearing up the flood damage will be exempt from taxation for the recipient. Donations made from either corporate or private assets to support disaster victims will be tax-deductible, provided that the recipient appears on the list of charitable organizations at the time of the donation.
Furthermore, monetary donations from corporate and private assets to volunteer fire services may be deducted from tax as a business expense. Similarly, donations of food and clothing from corporate assets may also be deducted from tax as a business expense.
Additionally, all costs incurred in the clearing up of the immediate effects of the flood will be tax-deductible, provided that they have not already been covered by either subsidies or donations.
Costs associated with replacing property, furniture, furnishings, electrical, household, and kitchen appliances, clothing, cutlery and personal items are tax-deductible up to the proven replacement value of the destroyed goods. Citizens will also be able to deduct from tax the cost of replacing a vehicle, on the basis of the car’s current value. Expenditure linked to the replacement of items in a second home are not tax-deductible, however.
Finally, no penalty fees will be imposed for individuals that either fail to make a tax payment on time, or miss a reporting deadline, due to the disaster.