On 25 July 2018, the Federal Tax Administration (FTA) published the circular "Professional Expenses Flat Rates and Remuneration in Kind 2019 / Compensation for the Consequences of Cold Progression in Direct Federal Taxation for the 2019 Tax Year".
According to the circular "Professional expenses allowances and payments in kind 2019 / Compensation for the consequences of the cold progression in direct federal tax for the 2019 tax year" dated 25 July 2018, the flat-rate deductions for professional expenses in the 2019 tax year will not change compared to the previous year. The amendment to the Annex to the Ordinance on the Deduction of Professional Expenses of Employed Persons for Federal Direct Tax Purposes of 10 February 1993, issued by the Federal Department of Finance (FDF) on 21 July 2008, continues to apply.
There are also no adjustments to the approaches for the valuation of payments in kind. Thus, for the 2019 tax year, leaflet N1/2007 Remuneration in kind for self-employed persons, leaflet N2/2007 Remuneration in kind for employees and leaflet NL1/2007 Remuneration in kind for business owners in agriculture and forestry will continue to apply.
For the 2019 tax year, the negative inflation trend means that the consequences of the cold progression will not be offset.
All FTA circulars are available here.
