Austria: Tax Facts 2016

15. January 2016 | Reading Time: 3 Min

Austria Income Tax Rates 2016

Individuals: Income tax rates

Taxable Income 2015 (EUR)

Tax Rate (%)

Up to 11,000

0

From 11,000 – 25,000

36.5

From 25,000 – 60,000

43.2

Over 60,000

50

 

Taxable Income from 2016 (EUR)

Tax Rate (%)

Up to 11,000

0

From 11,000 – 18,000

25

From 18,000 – 31,000

35

From 31,000 – 60,000

42

From 60,000 – 90,000

48

From 90,000 – 1,000,000

50

Over 1,000,000

55

The above tax rates basically apply to all income, except income from capital investments (dividend income, most savings income, etc) and income from the sale of properties (from 1 April 2012). The same rates apply to both residents and non-residents. However, non-residents have to add EUR 9,000 to their tax base (especially for income that has not been taxed by way of withholding tax).

Companies: Income Tax Rate in Austria

Corporations are taxed on their gross income at the corporate level and are subject to Austrian corporate income tax at a flat rate of 25%. The same rates apply to both resident and non-resident companies. Resident corporations are obliged to pay annual minimum income tax even when making losses. Companies linked in a financial hierarchy can constitute a group for tax purposes under specified circumstances. The taxable profits or losses of the members of a group are added to those of the taxable company in the group. Losses of non-resident companies can generally be deducted (from 2015 up to 75 % of the overall surplus of the resident group members). Goodwill amortisation can not be deducted for acquisitions after 28 February 2014.

VALUE ADDED TAX (VAT)

VAT covers any entrepreneur who independently carries on a business in Austria. The standard VAT rate is 20%. A reduced rate of 10% is imposed on rents of land and buildings for residential purposes (including hotel accommodation), transport of passengers, etc. From 2016 the reduced rate of 10 % is increased to 13% for some products and services (e.g. hotel accommodation). Zero rate (0%) is applied on certain items (e.g. exported goods and services).

CAPITAL GAINS TAX (CGT)

Individuals

Income Type

Tax Rate (%) 2015

Tax Rate (%) from 2016

Dividends

25

27.5

Interest from bank deposits

25

25

Interest from debt securities

25

27.5

Capital Gains

25

27.5

Income from derivatives

25

27.5

Companies and capital gains tax rates

Holding companies are privileged under certain circumstances, interest is mostly deductible (special restrictions within a group of companies on interest rates for acquisitions and on interests/royalties paid to low-taxed companies). Capital gains for other companies are taxed at the normal corporate income tax rates.

LOSSES

In principle losses may be carried forward without time limit and can be set off against the income of the current year to a certain degree. Excess losses may be carried forward to subsequent tax years. Losses carried forward may be lost after a substantial change in ownership.

TREATY NETWORK

More than 90 countries.

WITHHOLDING TAX (non-residents)

  • Dividends: 25% (27.5 % from 2016) (unless reduced/exempt under Parent-Subsidiary Directive or the relevant treaty)
  • Interest: 35% from 1 July 2011, particularly if paid to non-resident EU individuals, 25% for others (27.5% from 1 January 2016, see above)
  • Royalties: 20% (unless reduced/exempt under Interest-Royalty Directive or the relevant treaty)
  • Capital Gains: 25 % (27.5% from 2016)
  • Disposal of property: 25% (30% from 2016)

 

 

Do you have questions about the current tax rates and changes in Austria 2016? Contact our tax experts in Austria!

 

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