Profit distributions to GSVG liable Shareholder-Managing Director of a GmbH

Profit distributions to shareholder-managing directors of a GmbH have always been subject to compulsory contributions under the GSVG, provided that this activity did not already give rise to compulsory ASVG insurance. Since January 2016, distributions to managing partners of a GmbH who are subject to the GSVG must also be reported in the capital gains tax return (KESt return). However, until February 2020, there was no legal basis for the implementation of the data exchange between the tax authorities and the Social Insurance Institution for the Self-Employed (SVS).

Based on the Ordinance on the Implementation of the Transmission of Income Tax Data to the Social Insurance Institution (as amended by Federal Law Gazette II 38/2020), the following data from the KESt declaration should have been made available to the SVS electronically since then:

  • Social security number of the shareholder-managing director subject to GSVG
  • Name of the shareholder-managing director subject to GSVG
  • Gross amount of profit distribution

Due to a technical error, however, the transmission of the data could not actually begin until the end of 2021. The SVS is now also in a position to prescribe the corresponding social security amounts to the shareholder-managing directors for profit distributions that have accrued. This applies retroactively to profit distributions received since January 1, 2019.

Based on the current legal situation, the tax authority generally only transmits the distribution data if and when an assessment for income tax is made. The data transmitted originates exclusively from the corresponding information in the investment income tax return. The SVS does not check this information. If an income tax assessment including distributions is submitted, these are taken into account when determining the final contribution basis. If a submitted distribution does not result from employment subject to the GSVG/FSVG, the SVS can be requested to verify the information, stating the reasons.

 

Important information on short-time work

Regardless of the form in which you submitted the short-time work application, the AMS can send you important messages - such as improvement orders or reminders - via your online eAMS account. This applies not only to those applications that were submitted electronically, but also to those that were submitted by mail at the beginning of the first short-time work phase in 2020. If such messages from the AMS remain unanswered, this can, in the worst case, lead to the recovery of the entire subsidy!

We therefore recommend that you regularly check your eAMS account for messages from the AMS!

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