{"id":151552,"date":"2026-10-08T10:32:28","date_gmt":"2026-10-08T10:32:28","guid":{"rendered":"https:\/\/www.legal500.com\/guides\/?post_type=comparative_guide&#038;p=151552"},"modified":"2026-10-09T13:16:32","modified_gmt":"2026-10-09T13:16:32","slug":"austria-tax","status":"publish","type":"comparative_guide","link":"https:\/\/www.legal500.com\/guides\/chapter\/austria-tax\/","title":{"rendered":"Austria: Tax"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-151552","comparative_guide","type-comparative_guide","status-publish","hentry","guides-tax","jurisdictions-austria"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Schindler Attorneys<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/03\/SchindlerAttorneys_Logo-1.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Schindler Attorneys<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/03\/SchindlerAttorneys_Logo-1.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Tax laws and regulations applicable in Austria<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How often is tax law amended and what is the process?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austrian tax law is subject to change at any time, and new provisions or minor amendments are introduced at federal level almost every year, but not on a specific date.<\/p>\n<p>Most legislative proposals submitted to the parliament originate from the government, although at least five members of the parliament, parliamentary committees or even popular petitions with at least 100,000 signings may also initiate amendments or new statutory provisions. Before the members of the parliament vote on the draft, the legislative proposal is referred to the relevant consultative bodies for their views. These bodies may include further government departments (e.g., for a review under a constitutional law perspective), local administrative authorities or other organizations, including non-governmental organizations whose activities might be affected by the draft (e.g., the Austrian Chamber of Tax Advisors and Public Accountants). The consultation process enables these stakeholders to put forward suggestions, which may lead to amendments before the draft is put to a vote in parliament.<\/p>\n<p>In addition to amendments introduced through government initiatives, Austria regularly aligns its legislation with initiatives from the European Union and the OECD. This includes the transposition of EU directives into national tax law or the direct application of new EU regulations. Finally, changes also occur to address recent jurisprudential developments.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the principal administrative obligations of a taxpayer, i.e. regarding the filing of tax returns and the maintenance of records?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austrian taxpayers, both individuals and companies, are required to submit annual tax returns.<\/p>\n<p>The statutory deadline for submitting an income tax return is usually April 30th (or June 30th in the more relevant case of electronic filings) of the year following the calendar year in question, but it is possible to apply for (several) extensions of this deadline. In case the taxpayer is represented by a professional Austrian tax advisor, such prolongation would be possible for nine additional months.<\/p>\n<p>Value added tax returns must usually be submitted on a monthly basis (or quarterly basis depending on the annual turnover of the entrepreneur), and an additional annual tax return is also required.<\/p>\n<p>Employers are also required to submit monthly wage tax returns, which include social security contributions and taxes withheld from the employees\u2019 remuneration.<\/p>\n<p>Austrian companies and entrepreneurs must prepare annual financial statements for each financial year. Generally, books and records must be retained for seven years for tax purposes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who are the key tax authorities? How do they engage with taxpayers and how are tax issues resolved?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The key tax authorities in Austria are the Austrian Tax Office, the Austrian Tax Office for large enterprises and the Austrian Customs Office. All these tax authorities are directly subordinated to the Austrian Ministry of Finance.<\/p>\n<p>The Austrian Ministry of Finance is the competent authority for drafting tax legislation (which are submitted to the parliament by the government) and negotiating Austria\u2019s double taxation agreements.<\/p>\n<p>The Austrian Tax Office administers and collects federal taxes such as income tax, corporate income tax, value added tax, real estate transfer tax or stamp duties. Furthermore, the Austrian Tax Office publishes guidelines on the interpretation of tax provisions and regulations.<\/p>\n<p>The time required to resolve tax matters can vary considerably and generally depends on the scope and complexity of the issue. Standard enquiries can often be resolved directly with the competent tax authority within a couple of weeks or months. However, in some cases involving complex issues or in case appeals are decided by Austrian Tax Courts (Federal Fiscal Court, Supreme Administrative Court), procedures may take up to several years.<\/p>\n<p>Taxpayers may also apply for a legally binding advance tax ruling regarding the tax implications of an envisaged transaction.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are tax disputes heard by a court, tribunal or body independent of the tax authority? How long do such proceedings generally take?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Tax assessment notices are issued by the competent tax office. A taxpayer may file an appeal for a reassessment and further request a decision by an independent Federal Fiscal Court.<\/p>\n<p>The Federal Fiscal Court further decides whether a final appeal (so-called \u201cordinary revision\u201d) is granted in which the Supreme Administrative Court has jurisdiction. Generally, ordinary revisions are only granted if there is uncertainty regarding the interpretation of tax law.<\/p>\n<p>Tax disputes in court often take several years to be resolved.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the typical deadlines for the payment of taxes? Do special rules apply to disputed amounts of tax?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Austria, the deadlines for paying taxes vary depending on the type of tax and the taxpayer\u2019s circumstances. Taxes charged in a tax assessment are generally due one month after the taxpayer has received the notice of assessment issued by the tax office. In the event of non-payment, the tax authority will initiate enforcement measures, which usually result in the imposition of interest on arrears and late payment penalties.<\/p>\n<p>Income tax is levied under a prepayment system. A company\u2019s advance tax liability is determined by an advance tax assessment based on the latest available annual tax assessment notice. Advance tax payments are due in quarterly instalments at February 15th, at May 15th, at August 15th and at November 15th. Once the Austrian tax office has issued an annual income tax assessment notice, the remaining amount owed by the taxpayer must be paid within one month. Interest is charged or awarded if the tax withheld does not correspond to the final tax liability. Corresponding rules are applicable regarding corporate income tax.<\/p>\n<p>For employees, income tax (wage tax) is withheld at source by the employer, who needs to pay wage taxes by the 15th day of the following month.<\/p>\n<p>There are no special deadlines for disputed tax amounts. If a taxpayer decides to contest the assessed tax amount, payment is generally still due within the statutory deadline. However, the taxpayer may apply for a deferral of payment of the disputed tax amounts. Should the taxpayer\u2019s appeal be successful, all amounts paid in advance, plus interest, will be refunded. It is also possible to provide security in lieu of payment whilst the tax assessment is being contested.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are tax authorities subject to a duty of confidentiality in respect of taxpayer data?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Taxpayer data is treated as confidential and is subject to a duty of confidentiality. The Austrian tax authorities may exchange information amongst themselves for the purposes of tax assessment. Taxpayer data may only be disclosed to other Austrian authorities in exceptional cases provided for by law (e.g., to the social security authorities or law enforcement agencies).<\/p>\n<p>At international level, Austria has concluded numerous agreements providing for the exchange of tax information upon request, automatically and on the initiative of a tax office.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is this jurisdiction a signatory (or does it propose to become a signatory) to the Common Reporting Standard?  Does it maintain (or intend to maintain) a public register of beneficial ownership?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austria has adopted the Common Reporting Standard by implementing Council Directive 2014\/107\/EU of the European Union in the Common Reporting Standard Act (GMSG), which came into force on January 1st, 2016.<\/p>\n<p>Austria maintains a public register of beneficial owners. Companies, foundations and other legal entities registered in Austria are obliged to enter themselves in the register of beneficial owners and to declare their beneficial owners on a regular basis.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the tests for determining residence of business entities (including transparent entities)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Partnerships are fiscally transparent from an Austrian tax perspective. The partners in a partnership are taxed individually, meaning that the place of tax residence is determined at the level of the partners.<\/p>\n<p>The Austrian Corporate Income Tax Act provides that a corporation is deemed to be resident in Austria if it has either its registered office or the place of management within Austrian territory.<\/p>\n<p>The term \u2018place of management\u2019 means that a company, even though it is incorporated and registered in another jurisdiction, may nevertheless be deemed to be resident in Austria if key management decisions are taken in Austria. Austrian authorities base their approach on the criteria set out in the OECD Commentaries, EU directives and case law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do tax authorities in this jurisdiction target cross border transactions within an international group? If so, how?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austrian tax authorities are increasingly focused on cross-border issues and transactions involving international groups, with particular emphasis on transfer pricing (e.g., the arm\u2019s length principle), withholding tax and substance issues.<\/p>\n<p>International restructuring, transfer pricing and the associated documentation are frequently the subject of discussions with tax authorities during audits. If the documentation requirements are not met, the tax authorities are, in principle, authorized to adjust the taxable profit in line with an assessment of the arm\u2019s length compensation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a controlled foreign corporation (CFC) regime or equivalent?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, Austria applies the rules on controlled foreign companies (CFCs) in accordance with the EU Anti-Tax Avoidance Directive (EU Directive 2016\/1164). Austria implemented theses CFC rules in the Corporate Income Tax Act (KStG).<\/p>\n<p>The Austrian CFC rules lead to the attribution of a low-taxed subsidiary\u00b4s (passive) income to its Austrian parent company and apply if more than a third of the controlled entity\u00b4s profits stem from \u201cpassive income\u201d (e.g., interest, royalties, dividends, etc.). The income is considered low-tax if it is taxed at an effective tax rate which does not reach at least 15 per cent.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a transfer pricing regime?  Is there a \"thin capitalization\" regime?  Is there a \"safe harbour\" or is it possible to obtain an advance pricing agreement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Transactions between associated entities must be carried out on arm\u2019s length terms in accordance with general tax provisions and must be economically justified. When interpreting the arm\u2019s length principle, the Austrian tax authorities rely mostly on the OECD Transfer Pricing Guidelines. Taxpayers may apply for a legally binding advance tax ruling regarding transfer pricing implications of an envisaged transaction. Furthermore, applications for Advance Pricing Agreements (APAs) can be submitted to the Austrian tax authorities. In practice, the procedure begins with a presentation of the facts (so-called \u2018pre-filing meeting\u2018) and a formal application to the relevant tax authority.<\/p>\n<p>In Austria, there is no \u2018thin-cap\u2019 rule for tax purposes. In practice, the Austrian tax authorities tend to accept a debt\/equity ratio of approximately 3:1 to 4:1. Furthermore, under Austrian commercial law, a minimum equity ratio of 8 per cent is claimed.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a general anti-avoidance rule (GAAR) and, if so, how is it enforced by tax authorities (e.g. in negotiations, litigation)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austrian tax law does have a general anti-abuse rule in the Federal Fiscal Code. This general rule has been adapted from the anti-abuse doctrine developed by the Austrian Supreme Administrative Court and is applicable to all types of tax in order to prevent abusive tax planning. Under this general anti-abuse rule, abuse of law occurs if, with regard to the targeted goal, a legal structure has an unusual and inappropriate character and can be explained only by the intention of tax avoidance. It has to be assessed whether the chosen path remains meaningful without the tax minimization or avoidance. Furthermore, the anti-abuse rule also covers the \u2018substance over form\u2019 principle and provides that for the purpose of evaluating tax questions under an economic approach, it is not the outer formal appearance that counts, but the actual economic substance of facts and circumstances.<\/p>\n<p>The question whether a chosen structure or transaction should be classified as tax abusive is often assessed by the tax authorities in a very casuistic and case-by-case basis, which is why a definite assessment of the specific risk appears difficult. Therefore, it is possible to apply for a binding tax ruling with the Austrian tax authorities, confirming that an envisaged structure or transaction is not tax abusive.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a digital services tax? If so, is there an intention to withdraw or amend it once a multilateral solution is in place?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austria levies a digital tax on online advertising services as of January 1<sup>st<\/sup>, 2020, according to the <a href=\"https:\/\/www.ris.bka.gv.at\/GeltendeFassung.wxe?Abfrage=Bundesnormen&amp;Gesetzesnummer=20010780\">Austrian Digital Tax Act 2020<\/a>.<\/p>\n<p>Online advertising services are subject to the digital tax if and insofar as they are provided by online advertisers in Austria for remuneration. An online advertising service is deemed to have been provided domestically if it is received on a user\u2019s device having a domestic IP address and is addressed (also) to domestic users in terms of its content and design. The location of the provision of an online advertising service may be determined on the basis of the IP address.<\/p>\n<p>Advertisements placed on a digital interface, in particular in the form of banner advertising, search engine advertising and comparable advertising services are considered online advertising services. The tax debtor is the online advertiser entitled to a remuneration for performing an online advertising service. This also applies if the online advertiser is not the owner of the digital interface.\u00a0The assessment base for the digital tax is the remuneration that the online advertiser receives from a customer. This is reduced by expenditures on intermediate inputs by other online advertisers that are not part of the tax debtor\u2019s multinational group of companies. The tax rate amounts to 5 percent of the assessment base.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How has the BEPS 2.0 two-pillar approach been implemented in your jurisdiction (or plans for implementation)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austria has gradually aligned its tax system with the OECD\u2019s BEPS (Base Erosion and Profit Shifting) agenda, largely through the implementation of EU directives. A series of measures has been adopted, including rules to combat hybrid mismatches, restrictions on interest deductions and legislation on controlled foreign companies (CFCs). In addition, anti-abuse clauses have been introduced into treaties, reporting obligations have been extended (including country-by-country reporting), and obligations regarding the exchange of information have been strengthened. Austrian transfer pricing regulations have always been based on the OECD Guidelines and are in line with Actions 8, 9 and 10.<\/p>\n<p>Austria has also introduced the global minimum tax framework by implementing EU Directive 2022\/2523.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How has the OECD BEPS program impacted tax policies?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austria has taken a positive view of initiatives promoted by the OECD. Consequently, Austrian legislation is generally aligned with the OECD\u2019s BEPS standards.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax system broadly follow the OECD Model i.e. does it have taxation of: a) business profits, b) employment income and pensions, c) VAT (or other indirect tax), d) savings income and royalties, e) income from land, f) capital gains, g) stamp and\/or capital duties? If so, what are the current rates and how are they applied?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Austrian tax system is based on the recognized OECD model. The Austrian tax system provides for the taxation of the following types of income:<\/p>\n<p>a) Business profit (commercial activities)<\/p>\n<p>Income from commercial activities is defined as income from trade or business which is not considered an agricultural or forestry activity. Residents in Austria with income from commercial activities are taxed on their worldwide income. Non-residents are taxed on commercial income from a permanent establishment in Austria. All corporate income generated by a company that, due to its legal form, is obliged to follow the general accounting principles has to be categorized as income from commercial activities.<\/p>\n<p>Individuals with income from commercial activities are generally taxed with a progressive income tax up to 50 per cent tax rate. Companies with income from commercial activities are subject to 23 per cent corporate income tax (income exceeding EUR 1m will be taxed with 24 per cent starting in 2028 and following financial years).<\/p>\n<p>b) Employment income and pensions<\/p>\n<p>Income from employment comprises all income relating to the work carried out, e.g., compensation in cash or in kind, and pension income received by a retiree (from social security, from a private pension fund or from the former employer).<\/p>\n<p>Expenses directly related to the work carried out are tax-deductible.<\/p>\n<p>In general, income from employment is subject to wage tax which is withheld by the employer (or the institution paying the pension).<\/p>\n<p>c) VAT<\/p>\n<p>Value added tax is generally levied on the supply of goods and the provision of services. The standard rate in Austria is 20 per cent. However, certain supplies of goods and services are subject to a reduced rate of 13 per cent (e.g., services provided by artists) or 10 per cent (e.g., basic foodstuff such as milk, etc.). Several supplies are exempt from VAT, such as medical services, the transfer of securities, and the letting and sale of immovable property. Under certain conditions, however, it is possible to opt to be subject to VAT.<\/p>\n<p>d) Savings income and royalties<\/p>\n<p>For companies, interest income and royalty payments are subject to corporate income tax at a rate of 23 per cent at the level of the recipient, and interest expenses and royalty payments made are generally deductible for the payer.<\/p>\n<p>For individuals, income from capital investments, such as interest and dividends, is taxed at a flat rate of 27,5 per cent.<\/p>\n<p>e) Income from land<\/p>\n<p>For companies, income from renting and leasing of real estate is subject to the standard corporation tax rate of 23 per cent.<\/p>\n<p>For private individuals, income is generally taxed with a progressive income tax up to 50 per cent.<\/p>\n<p>g) Stamp duties<\/p>\n<p>Stamp duty is levied on certain contracts such as rental agreements, assignment of rights or out of court settlements. However, a stamp duty is only triggered if a written contract is drawn up for the legal transaction. The applicable stamp duty rate is usually between 1 and 2 per cent of the assessment base.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is business tax levied on, broadly, the revenue profits of a business computed in accordance with accounting principles?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Company profits calculated in accordance with Austrian accounting standards form the basis for calculating the taxable income of companies, partnerships and self-employed individuals.<\/p>\n<p>For tax purposes, certain adjustments must be made in respect of certain items, for instance the depreciation of assets and the deductibility of expenses.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are common business vehicles such as companies, partnerships and trusts recognised as taxable entities or are they tax transparent?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austrian tax law distinguishes between tax-transparent legal entities, such as partnerships, and non-transparent legal entities, such as companies. For income tax purposes, the taxable income of a partnership is generally allocated to the partners in proportion to their shareholdings and taxed at the level of the partners.<\/p>\n<p>Corporations are treated separately from their shareholders. Taxable income is taxed at the level of the company with 23 per cent corporate income tax (income exceeding EUR 1m will be taxed with 24 per cent starting in 2028 and following financial years).<\/p>\n<p>Neither the Austrian Income Tax Act nor the Austrian Corporate Income Tax Act contain explicit provisions dealing with trusts. In the case of mere passive investments (rather than an active trade or business), it is generally held that trust assets are to be attributed to their beneficial owner (transparent trust). However, pursuant to the Austrian Supreme Administrative Court a trust should be qualified as a separate taxable (in-transparent trust) entity in case neither the settlor (donor) nor the beneficiaries have comprehensive instruction and supervision rights regarding the management of the trust assets. The settlor (donor) should not have such rights in the case of a discretionary trust where he or she has transferred the entire management to the trustees (who have full discretion)<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is liability to business taxation based on tax residence or registration?  If so, what are the tests?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austrian tax law distinguishes between the unlimited taxation of residents (taxpayer is liable to tax on their worldwide income) and the limited taxation of non-residents (only certain income from Austrian sources is subject to tax).<\/p>\n<p>A company is subject to unlimited taxation on its worldwide income if its registered office or place of management is in Austria. The term \u2018place of management\u2019 means that a company, even though it is incorporated and registered in another jurisdiction, may nevertheless be deemed to be resident in Austria if key management decisions are taken in Austria. Austrian authorities base their approach on the criteria set out in the OECD Commentaries, EU directives and case law.<\/p>\n<p>Unlimited tax liability applies to individuals who have their place of residence or their habitual abode in Austria. A person has his place of residence wherever he or she has a dwelling under such conditions that would lead to the conclusion that he or she intends to keep and continue to use that dwelling (any place which, based on its size and furnishing\/facilities, may serve as a home). A person has his or her habitual abode wherever he or she resides under circumstances that show that he does not reside in this place or country only temporarily; the guidelines of the Austrian tax authorities assume that a person will be subject to unlimited tax liability whenever his stay in Austria exceeds six months. The unlimited tax liability will in such cases count from the first day of his or her stay in Austria.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any favourable taxation regimes for particular areas (e.g. enterprise zones) or sectors (e.g. financial services)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austria does not have special tax regimes for enterprise zones nor favorable tax regimes for financial services or other sectors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any special tax regimes for intellectual property, such as patent box?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austria does not have any special tax regime with respect to intellectual property.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is fiscal consolidation permitted? Are groups of companies recognised for tax purposes and, if so, are there any jurisdictional limitations on what can constitute a tax group? Is there a group contribution system or can losses otherwise be relieved across group companies?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Austria, companies are by law separate and independent entities. However, tax law recognizes an economic dependency by permitting a consolidation of profit and losses between related entities under certain conditions (group taxation). Group taxation according the Corporate Income Tax Act requires a group parent, which generally must be a resident stock company or limited liability company. Regarding group members, a share in the statutory capital and the voting rights of that group member of more than 50 per cent is required. The participation may be either held directly or indirectly through another group member or a partnership. All Austrian corporations as well as comparable foreign corporations which are resident in the EU or in a state which has concluded an agreement of exchange of information and mutual assistance theoretically qualify as a potential group member. Profit attribution rules for foreign group members are different compared to a purely domestic situation.<\/p>\n<p>As a result of the group tax regime, the group member\u2019s total profits and losses are attributed to the group parent. By offsetting the losses of one corporation against the profits of the other corporation, it is possible to reduce the tax burden within the framework of group taxation. The tax group needs to exist for a period of at least 3 years. A company leaving a tax group during the minimum period will be deemed to be a non-group company for the preceding financial years and taxed accordingly as an individual entity. The required participation (&gt;50 per cent) must exist for the whole accounting year of the group members.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any withholding taxes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, Austria imposes withholding taxes on income paid to both individuals and legal entities in a domestic or cross-border context.<\/p>\n<p>For individuals, withholding tax generally applies to salaries, pensions, rental income, dividends, interest, and royalties. For corporate taxpayers, withholding taxes apply, absent of a double tax treaty, to dividends, interest, and royalties. The tax rates depend on the income type and any applicable double tax treaty.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any environmental taxes payable by businesses environmental tax credits available to businesses?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are several taxes in Austria, whose tax base depends on the impact on the environment, for instance various forms of energy taxes or registration and insurance taxes for vehicles.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is dividend income received from resident and\/or non-resident companies taxable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, dividends are subject to (corporate) income tax at the level of the recipient (shareholder). The corporate income tax rate is 23 per cent (income exceeding EUR 1m will be taxed with 24 per cent starting in 2028 and following financial years). The applicable tax rate for individuals is 27.5 per cent.<\/p>\n<p>However, profit distributions between two Austrian corporations are tax exempt according to the participation exemption according to the Austrian Corporate Income Tax Act. This participation exemption applies without any minimum holding requirements and participation\/holding periods. The tax exemption at the level of the receiving shareholder (participation exemption) is applied independently form the treatment of the profit distribution at the level of the distributing entity. The distributing entity is subject to withholding tax for the profit distribution, unless the participation the receiving entity in the distributing entity amounts to at least 10 per cent (held directly or indirectly). Nevertheless, a withholding tax notification needs to be filed by the distributing entity no later than 7 days after the distribution, even if no Austrian withholding tax is deducted at source.<\/p>\n<p>Profit distributions to foreign (non-resident) shareholders of Austrian companies (outbound dividends) may be subject to withholding tax in Austria. As Austria has implemented the EU-Parent\/Subsidiary Directive, such domestic withholding tax may be reduced to zero (\u2018relief at source\u2018). The requirements for such relief at source of withholding tax are that the foreign entity meets the substance requirements at the moment of the dividend distribution and must directly own at least 10 per cent of the share capital of the dividend paying entity for a period of at least one year.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the advantages and disadvantages offered by your jurisdiction to an international group seeking to relocate activities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austria offers political and economic stability as well as a high-quality infrastructure. For corporate and employment tax matters Austria has an international competitive environment, and it is generally possible to conclude advance ruling requests with the Austrian authorities, offering legal assurance with respect to certain companies&#8217; set-ups.<\/p>\n<p>Furthermore, Austria has a very broad double tax treaty network with more than 100 countries. Therefore, potential double taxation issues may be covered by a respective applicable double tax treaty.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4477<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/151552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=151552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}