local tax

Legal basis

The municipal tax (KommSt) is levied on behalf of the municipality by the Municipal Association for Tax Collection in Mank in accordance with the 1993 Municipal Tax Act.

tax liability

The municipal tax is to be paid by the entrepreneur for his entire commercial, professional or self-employed activity. It is irrelevant whether the intention is to make a profit or whether an association is only active towards its members. Public corporations are subject to local tax within the framework of their commercial operations and their agricultural and forestry operations.

subject to tax

The sum of the wages that are paid monthly to the employees at the business premises in the municipal area is taxed. The assessment basis is largely identical to the employer's contribution to the family allowance fund under the Family Burden Equalization Act of 1967.

The sum of wages is the sum of all remuneration that accrues to the employee from an employment relationship, regardless of whether these wages are subject to income tax.

Employees are persons who are in an employment relationship or hold shares in corporations and therefore receive remuneration.

A permanent establishment is any fixed local facility that serves to carry out business activities. In the case of construction work, there is a permanent establishment if the construction site has existed for more than 6 months. If the business premises extend over several municipalities, the assessment basis must be broken down by the entrepreneur into the municipalities involved. The local conditions, the number of employees who work or live in the respective municipality and the costs incurred by the respective municipality must be taken into account. If an employee is employed in business premises in several municipalities, his wages must be divided between the municipalities involved according to the time he was there.

Tax Calculation and Payment

The assessment basis is formed by all wages and remuneration (salaries, wages, commissions, rewards, voluntary social benefits, benefits in kind, expense allowances, apprenticeship allowances, hazard, hardship and overtime surcharges, service charges, travel allowances,...) that are granted in one month of the entire business operation . If it is not more than €1,460, an allowance of €1,095 can be deducted for that month, even if the assessment basis is more than €1,460 in other calendar months. If it does not exceed the amount of € 1,095, no KommSt is to be paid for this calendar month.

If the business premises are located in several municipalities, the exempt amount must be divided proportionately between the individual business premises and the basis of assessment. The tax is 3% of the tax base. The municipal tax is a self-assessment tax. The tax debtor must calculate the tax himself and pay it to the association of municipalities by the 15th of the following month without being asked. The calculated tax should be rounded to 2 decimal places. In the event of late payment, a surcharge of 2% of the tax amount not paid on time is due.

tax exemption

The basis of assessment does not include:

rest and pension payments

Severance pay upon termination of employment

Benefits under the Disabled Persons Employment Act 1988

Family allowance according to the FLAG

Contributions to pension funds according to the 1990 Pension Fund Act

The following are generally exempt from tax:

Corporations, associations of individuals and groups of assets that serve charitable or non-profit purposes in the field of health care, child, youth, family, sick, disabled and elderly care.

tax declaration

By the end of March, the tax debtor for the past calendar year has to submit a declaration broken down by calendar month on the assessment basis for municipal tax. The declaration must also be submitted if the taxable basis of assessment does not exceed the tax-free amount of €1,095 in one month and therefore no tax was payable or if the KommSt has not yet been paid.

Procedural Provisions

Responsibility: The state tax codes apply to the collection of municipal tax. With the exception of the division and allocation procedure, the municipal tax procedure is the responsibility of the municipality. The respective tax office where the company management is located is responsible for the breakdown and allocation of the basis of assessment. There is a reciprocal duty of notification and assistance between the municipality and the tax office.

If you have any questions, please contact:

Municipal association for environmental protection and tax collection in the district of Melk

Wieselburger Strasse 2, 3240 Mank

Phone: 02755/2652