Taxation of international executives
Are there social security/social insurance taxes in Austria? If so, what are the rates for employers and employees?
Austrian social insurance is compulsory and comprises health insurance, pension insurance, unemployment insurance, and accident insurance.
The contributions are determined as percentage of the total monthly earnings (but only up to specified maximum amounts) and are paid partly by the employee and partly by the employer.
The maximum contribution basis for regular payments amount to EUR 4,980 per month. The maximum contribution base for special payments (those that do not occur on a monthly basis, such as a bonus) amounts to EUR 9,960 per year.
From 1 January 2017, the percentages are as follows.
|Type of insurance||Paid by employer||Paid by employee||Total|
The other (minor) contributions payable are for housing purposes, to a special fund intended to safeguard wages and salaries against such contingencies as insolvency and to the chamber of labor.
* The employee-contribution for unemployment insurance is reduced depending on the income.
The employee’s portion of the various compulsory social security contributions is, for personal income tax purposes, deductible as an income-related expense.
The employer contribution of 1.53 percent is payable on the gross salary to a severance payment fund. This obligatory contribution applies to all private law employment contracts entered into from 1 January 2003, onwards.
Are there any gift, wealth, estate, and/or inheritance taxes in Austria?
After a decision of the Austrian constitutional court inheritance and gift tax are abolished from 1 August 2008 onwards. (Up to now there are no plans to replace the tax.)
However, in order to prevent avoidance of income tax it is required to report gifts over EUR15,000 within five years (EUR50,000 within one year for relatives) to the tax authorities. There is a penalty of up to 10 percent of the value if the report was not done deliberately.
Are there real estate taxes in Austria?
Immovable property situated in Austria is subject to real estate tax. For individuals, real estate tax paid is deductible in case the property is used for business purposes.
Are there sales and/or value-added taxes in Austria?
There are a number of indirect taxes that will affect an individual’s cost-of-living in Austria, including a European Community-style VAT of 20 percent.
Are there unemployment taxes in Austria?
Contributions for an insurance against unemployment are included in the Austrian social security system. It is funded partly through the employee (3 percent, reduced depending on income) and the employer (3 percent).
Are there additional taxes in Austria that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.
No information provided.
© 2018 KPMG Alpen-Treuhand GmbH Wirtschaftsprüfungs-und Steuerberatungsgesellschaft (Wien), an Austrian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.