Draft Program Act of 3 June 2013


Following the agreement on the federal budget plan for 2013, which we discussed in our HRS Headline of 4 April 2013, the Federal Government has now s­­­­ubmitted draft legislation ( bill ) to Parliament, proposing new tax measures.

The bill includes both the introduction of a uniform (withholding) tax rate of 25% (instead of the current 10%) applicable to liquidation bonuses as from 1 October 2014 and a transition period during which shareholders can continue to benefit from taxation at the 10% (withholding) tax rate.

Furthermore, with respect to investments in small and medium-sized entities via cash contributions, the gradual reduction of the moveable withholding tax on dividends related to the corresponding shares from 25% to 15% over a four -year period is also covered by the bill.

Please note that Parliament still has to enact these proposed measures.