Austria-GmbH

Basic taxes (briefly)

Personal tax 25-55%
Corporate tax (in detail) The corporate tax rate in Austria is 25%. Even if the company does not receive income, there is a minimum tax of € 3.500 for joint-stock companies and € 1.750 for limited liability companies (for newly created - € 500 for the first five years and € 1,000 for the next five years). The minimum tax is credited against future income tax for an indefinite period.
Capital gains tax. Details Capital gains are usually taxed as part of the gains at the standard rate of 25%.
VAT. Details The standard VAT rate is 20%. A reduced rate of 10% applies to foodstuffs, pharmaceuticals, agricultural products, rent, tourist services, public utilities (except electricity) and entertainment. Professional services (such as lawyers and architects) are subject to 20% VAT. Certain supplies are zero-rated and some are exempt.
Other taxes real estate tax, transfer tax, social security contribution
Government fee
Stamp duty Yes

International tax agreement

Albania, Algeria, Argentina, Armenia, Australia, Azerbaijan, Bahrain, Barbados, Belarus, Belgium, Belize, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, Chile, China, Croatia, Cuba, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hong Kong, Hungary, Iceland, India, Indonesia, Iran, Ireland, Ireland, Israel, Italy, Japan, Kazakhstan, Korea, Kosovo, Kuwait, Kyrgyzstan, Latvia, Libya, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Mexico, Moldova, Mongolia, Montenegro, Morocco, Nepal, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russia, San Marino, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Syria, Taiwan, Tajikistan, Thailand, Tunisia, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States, Uzbekistan, Venezuela, Vietnam
   
Andorra, Gibraltar, Guernsey, Jersey, Mauritius, Monaco, Saint Vincent and the Grenadines


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Personal Income Tax

Residents are subject to income tax on their worldwide income, while nonresidents on income from Austrian sources.

Income tax is levied at the following rates:

  • 0% on income up to EUR 11,000;
  • 25% on income from EUR 11,001 to 18,000;
  • 35% on income from EUR 18,001 to 31,000;
  • 42% on income from EUR 31,001 to 60,000;
  • 48% on income from EUR 60,001 to 90,000;
  • 50% of income from EUR 90,001 to 1,000,000;
  • 55% on income over EUR 1,000,000.

Corporate Income Tax

A company is considered tax resident in Austria if it has its place of effective management in Austria or is incorporated in Austria.

Resident companies pay tax on their worldwide income. Nonresident companies only pay tax on income derived from sources in Austria.

The Austrian corporate tax rate is 25%.

Even if a company does not receive income, there is a minimum tax of EUR 3,500 for joint-stock companies and EUR 1,750 for limited liability companies (for newly created companies – EUR 500 for the first five years and EUR 1,000 for the next five years). The minimum tax is credited against future corporate tax without any time restrictions.

Capital gains are usually taxed as part of profit at the standard corporate tax rate of 25%. Profits from the sale of foreign company shares are exempt from tax if the shareholding is not less than 10% and the ownership period is not less than a year. There are also exemptions for dividends.

Social Security Contributions

Social security contributions in relation to the employee’s remuneration are paid at the following rates:

Employer’s contribution
Employee’s contribution
Total
Sickness
3,78%
3,87%
7,65%
Unemployment
3%
3%
6%
Pension
12,55%
10,25%
22,8%
Accident
1,2%
нет
1,2%
Miscellaneous
0,7%
1%
1,7%
Total
21,23%
18,12%
39,35%

Contributions are paid on a maximum salary of 5,370 per month.

In addition, employers pay a Family Burdens Equalisation Levy of 3.9%, a municipal payroll tax at a rate of 3%, a mandatory pension fund contribution at a rate of 1.53%, and a number of others.

Withholding Tax

Dividends paid to foreign companies are subject to withholding tax at the rate of 25%.

Interest paid to foreign companies is not subject to withholding tax unless the loans are secured by Austrian real estate.

Royalties paid to foreign companies are subject to withholding tax at the rate of 20%.

Withholding taxes may be reduced under the relevant double tax treaties and EU Directives.

VAT

The standard VAT rate is 20%. The reduced rates of 10% and 13% apply to certain goods and services.

Property Tax

Local authorities have the right to levy tax on Austrian real estate. The tax base is determined by special rules, the effective tax rates are determined depending on the purpose of use and several other factors.

Property Transfer Tax

This tax is usually levied at the rate of 3.5% on the transfer of ownership of Austrian real estate.

There are exemptions and reliefs.

When registering ownership of real estate, a fee of 1.1% is charged.

Transfer of shares in companies and partnerships owning Austrian real estate may attract a 0.5% tax.

Stamp Duty

Stamp duty applies to a number of transactions for which contracts are signed. The rates vary depending on the transaction.

Capital tax is levied at a rate of 1% on mandatory contributions from shareholders and on voluntary or hidden capital contributions to Austrian companies.

CFC Rules

A controlled foreign company is a foreign company taxed at a low tax rate (less than 50% of Austrian tax), in which an Austrian company owns, directly or indirectly, individually or together with related parties, more than 50% of the capital.

CFC rules have a number of exemptions.

The undistributed profit of a CFC is included in the tax base of the Austrian parent company if this profit arises from tax evasion transactions. The analysis of transactions for these purposes takes into account the functions performed in Austria for the controlled company.

Double Tax Agreements

Austria has exchange of information relationships with 97 jurisdictions through:

92: Albania, Algeria, Argentina, Armenia, Australia, Azerbaijan, Bahrain, Barbados, Belarus, Belgium, Belize, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, Chile, China, Croatia, Cuba, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hong Kong, Hungary, Iceland, India, Indonesia, Iran, Ireland, Ireland, Israel, Italy, Japan, Kazakhstan, Korea, Kosovo, Kuwait, Kyrgyzstan, Latvia, Libya, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Mexico, Moldova, Mongolia, Montenegro, Morocco, Nepal, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russia, San Marino, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Syria, Taiwan, Tajikistan, Thailand, Tunisia, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States, Uzbekistan, Venezuela, Vietnam.

7: Andorra, Gibraltar, Guernsey, Jersey, Mauritius, Monaco, Saint Vincent and the Grenadines.

Foreign exchange control

There are no foreign exchange controls in Austria.

    Taxes of Austria

    Min. rate for corporate tax 25%
    Capital gains tax Regular rate
    VAT 20%
    Withholding tax 25%/0%/20%
    Exchange control No
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