On 1 January 2024, the new ORF Contribution Act came into force in Austria, which also regulates the financing of Austrian Broadcasting Corporation (Österreichischer Rundfunk, in short: ORF) through mandatory company contributions. Cleaning companies, labour suppliers and the construction industry were exposed to double or multiple charges in certain constellations as a result of this new regulation - however, it was possible to achieve relief in negotiations.
Basis of the obligation to pay contributions
The new regulation stipulates that all companies in Austria must pay a staggered ORF contribution, the amount of which is based on the total wages paid to employees in the previous calendar year. These wages also include special payments, benefits in kind, allowances and supplements in accordance with Section 5 of the Austrian Municipal Tax Act (KommStG). Employees also include freelance employees and material participants pursuant to Section 22 no. 2 sub-sentence 2 Income Tax Act (EStG).
Calculation and graduation of the contribution
The ORF contribution is staggered and may require several contributions per month. The obligation to pay contributions applies per permanent establishment, whereby according to Section 4 para. 1 Austrian Municipal Tax Act (KommStG), a permanent establishment is any fixed installation or facility that is used directly or indirectly to carry out business activities. Home office workplaces do not constitute a permanent establishment and therefore do not trigger an additional ORF contribution, as they do not give the employer a certain, not merely temporary power of disposal over the plant or facility.
The number of ORF contributions to be paid depends on the Austrian Municipal Tax Act (KommStG) assessment basis and is capped at a maximum of 100 contributions per month. This corresponds to a maximum amount of € 1,530 per month.
In some federal states, such as Burgenland, Carinthia, Styria and Tyrol, an additional state tax is levied, which increases the contribution accordingly.
Notification requirements and deadlines
Companies are obliged to notify the ORF-Beitrags Service GmbH of the start, changes and end of the obligation to pay contributions. These notifications must be made by 15 April of the following calendar year and must contain certain information such as company name, e-mail address, company register number or a corresponding identification as well as the tax number. The ORFcontribution is due within 14 days of receipt of the payment request.
Violations of the notification obligation can be penalised with administrative fines of up to EUR 2,180. ORF-Beitrags Service GmbH has the right to inspect numerous registers and databases in order to verify the obligation to pay contributions. If necessary, the company can also request audits to be carried out by the audit service for payroll taxes and contributions.
Problems in the construction industry or in the labour suppliers
The construction industry and labour suppliers companies as well as cleaning companies and seasonal businesses such as Christmas tree dealers are particularly affected by the introduction of the ORF contribution. These sectors are confronted with potential double or multiple burdens due to the regulations, as a permanent establishment under the Austrian Municipal Tax Act (KommStG) and thus also a tax obligation under the ORF Contribution Act is established in several municipalities at the same time. There are no special exemptions for companies that are not already exempt from municipal tax pursuant to Section 8 Z 2 Austrian Municipal Tax Act (KommStG). According to Section 4 para. 3 Austrian Municipal Tax Act (KommStG), a permanent establishment of the hiring company is only established after six months at the employer's permanent establishment in the case of labour leasing, but this only represents a marginal advantage. After examining the problem, the Federal Ministry of Finance (BMF) and ORF-Beitrags Service GmbH (OBS) are of the opinion that such charges are not provided for by law. Joint discussions are therefore being held between the BMF, OBS and business representatives to develop an appropriate solution.
At present, it is planned to relieve the situation by refunding or correcting the contribution advance as part of this year's contribution collection. Affected companies are asked to report this by email to kam@orf.beitrag.at to suspend dunning procedures and receive further instructions. This is intended to avoid cost-intensive administrative proceedings and to ensure that no deadlines are missed. In the long term, automated recording of such cases is to be introduced in order to ensure that contributions are prescribed in an appropriate manner.
Conclusion
These comprehensive changes are aimed at securing the financing of public broadcasting in Austria in the long term. Nevertheless, for many companies they represent an additional financial burden and administrative challenge that must be overcome.
Although the companies particularly affected in the above-mentioned sectors have already received financial relief, they are now faced with additional administrative work. A solution to the problem and a legal amendment or specification to guarantee legal certainty is currently still being worked on. Until then, however, the current unsatisfactory situation will remain.
Autor:
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Tobias Goldberger |