Tax tips for the end of 2023: A comprehensive guide

Introduction: The turn of the year is approaching and with it the critical deadline of December 31. It is a crucial time to make important tax decisions. In this article, we present a series of tax tips for the end of 2023 to help you make the most of your financial affairs.

1. energy tax rebates: The reimbursement of energy taxes is a key aspect of tax planning. According to a ruling by the European Court of Justice, this remuneration is only possible for production companies and for a limited period of time. Please note the five-year limitation period for applications. Applications for 2018 can be submitted until December 31, 2023. This regulation is independent of current energy cost subsidies.

2. investments in fixed assets: The depreciation of fixed assets with a net acquisition cost of more than EUR 1,000 is spread over several years. Acquisitions in the last six months of the year only take into account the half-year depreciation. For newly purchased goods, there is the option of declining balance depreciation, which offers the greatest tax savings in the first year. Repairs to existing assets are immediate operating expenses that can have a positive impact on your balance sheet.

3. retention obligation for receipts & co.: The seven-year minimum tax retention obligation for the year 2016 ends on December 31, 2023. Please note special regulations, such as the 22-year retention period for input tax on real estate. Retention is also required for pending official or court proceedings. Corrections of errors are also possible for years that are already time-barred, so it is worth keeping old documents.

4. securities cover for pension provisions: Securities cover of 50% of the previous year’s provision amount is required for pension provisions. Underfunding can lead to a penalty surcharge. Check whether securities need to be purchased.

5 Which tax treat should it be: cost-of-living bonus or employee profit sharing? Companies have the option of paying out cost-of-living bonuses free of income tax. There is also an employee profit-sharing scheme. Please note the upper limit of EUR 3,000 per year for both premiums.

6. climate ticket for employees: grant your employees free public transport tickets. These are tax-privileged and do not result in any remuneration in kind. Make sure that the ticket is valid at your place of residence and work, or at least cover part of the costs.

7. sales tax: small business limit exceeded?: Small businesses with sales of up to 35,000 euros are exempt from sales tax. Observe a tolerance limit of 15 %. Exceeding the limit leads to VAT liability.

8. input tax deduction for the purchase of electric bikes: Electric bikes used for business purposes allow input tax to be deducted. Private use leads to a VAT charge.

9 Inventory: Determining stock levels: Entrepreneurs who determine their profit by accounting must carry out an inventory on the balance sheet date to determine the quantity of stock on hand. This also applies to those who switch from cash basis accounting to balance sheet accounting from 2024.

10. research premium for contract research: For companies that carry out contract research, there is a research premium of 14% for a maximum of 1 million euros in research contracts awarded. Timely notification to the tax office and an expert opinion from the FFG are required.

11 New: Research activities of the owners: Since 2022, the working hours of the researching entrepreneurs themselves have also been included in the assessment basis for the 14% premium, provided that there are qualitatively sufficient records of working hours.


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