Austria Scope of Income Tax
All
resident companies and permanent establishments
of non-resident companies are subject to corporate
income tax. Resident companies are liable
for tax on their worldwide income. Non-resident
businesses are taxed on their Austrian-sourced
income only.
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Austria Income Tax Rates
The
corporate income tax for 2010 is 25%.
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Austria Calculation of Taxable Base
Taxable income
includes all trading profits, passive income
and capital gains. Dividends are also included.
There is no time
restriction on the carry forward of federal
or local losses. However, the amount is limited
to 75% of income for that year. Remaining
losses may be carried forward and deducted
in future years. Losses cannot be carried
back.
Austria Filing Requirements and Payment of Tax
The standard
tax year is the calendar year and tax returns
must be filed by the end of April or, if filed
electronically, by end of June. Unauthorised
late filing may incur a maximum penalty of
10% of the tax due.
Quarterly payments
are due on February 15, May 15, August 15
and November 15, and are based on the previous
years’ figures.
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Austria Withholding Taxes
Withholding
tax of 25% is payable on domestic interest
payments. The same rate applies to interest
payments to non-treaty countries. No withholding
tax is due on domestic royalty payments. Payments
to recipients within the EU are exempt, and
payments to non-treaty countries are subject
to 20% withholding tax.
For
domestic as well as non-treaty country dividend
payments, a withholding tax of 25% is payable. A minimum
10% shareholding makes payments to other EU
countries exempt from withholding tax.
A
withholding rate of 20% applies to payments
to authors, presenters, artists, architects
and entertainers.
Austria
Capital Transfer Tax
Capital
transfer tax is charged at a rate of 1%
on share capital issues and increases,
and on contributions of capital to a company.
Austria Sales Taxes and VAT
The
standard VAT rate is 20%. A reduced rate of
10% applies to food, books, medicines, hotel
accommodation and transportation. Exports
are zero-rated.
The
areas of Jungholz and Mittelberg are excluded
from VAT for the importation of goods.
Small
businesses are exempt from VAT if their turnover
does not exceed EUR30,000. Traders with a
turnover of below EUR7,500 in an assessment
period are not required to submit a return.
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