Federal Government launches powerful package for medium-sized businesses
Focus on strengthening the economy and reducing bureaucracy
In view of the difficult economic situation in Austria, the Federal Government has approved a powerful package for medium-sized businesses in today's Council of Ministers. The aim is to counteract the effects of the third consecutive year of recession and the high costs for companies, and to strengthen the domestic economy.
Minister of Finance Markus Marterbauer: ‘Domestic SMEs are the backbone of our economy and provide jobs for around 2.5 million people. They also generate a gross value added of more than 160 billion euros, thus making a significant contribution to domestic economic performance. With this package, we are strengthening our economy as a whole and providing an important impetus for domestic value creation in times of recession.’
State Secretary for Finance Barbara Eibinger-Miedl: ‘With the 2025 SME package, we are specifically relieving the formal and financial burden on our small- and medium-sized enterprises, reducing bureaucracy and creating more financial leeway. SMEs are the engine of the Austrian economy – they secure jobs, innovation and prosperity in Austria. Today's decision is therefore also an important step in strengthening the Austrian economy in challenging times’.
The SME package comprises five points for tax relief and reducing bureaucracy:
Increase in the lump sum deduction in two steps
The lump sum deduction, including the input tax deduction, will be increased to EUR 320,000 and 13.5 per cent this year and to EUR 420,000 and 15 per cent from 2026.
Abolition of the issuance of receipts
The requirement to print receipts for amounts of up to €35 will be abolished as soon as possible, while maintaining fraud protection and the recording of all sales in the cash register (‘chaining’), after the necessary conditions have been created.
NoVA exemption
All N1 vehicles (light commercial vehicles) will be exempt from the NoVA from 1 July 2025.
Accelerated approvals
In the course of the year, a process will be set up to implement accelerations in the sector of energy and industrial plant law as well as in the case of company start-ups.
Bureaucracy brake
The Federal Government is committed to a bureaucracy brake and to the transparent presentation of administrative costs, and is therefore creating a central point of contact at the State Secretariat in the Foreign Ministry. In addition, a structured process is being established to prepare the annual bureaucracy report, with the aim of sustainably relieving unnecessary bureaucracy for companies and citizens. In doing so, duplications will be reviewed. Particular attention will be paid to the uniform enforcement of Federal Laws in order to promote legal certainty and clarity. In addition, national and European reporting requirements will be systematically analysed to identify potential for relief.