In July 2015 the Austrian Parliament has approved the Tax Reform Act 2015/2016. With effect as of 1 January 2016 the Austrian withholding tax (WHT) applicable to dividend distributions to non-resident companies will increase to 27.5%.
The Austrian tax reform is due to become effective in 2016 and is primarily based on a reform of the income tax rates. In this regards the WHT on dividends will increase to 27.5%. However, the current rate of 25% should continue to apply to general bank and savings accounts. It is expected that the same impact should apply to other income such as capital income realized by the sale of shares, distributions from private foundations and profits from derivatives.
The implementation of the tax reform will impact investors and mainly result in the increased tax burden on dividend income. Investors should therefore analysis once more their opportunities to reclaim unduly levied WHT in Austria.
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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.