Austria: Withholding tax on dividends, rate increase in 2016

Withholding tax rate in Austria

Tax reform in Austria includes a provision to increase the rate of withholding tax applicable for dividend distributions made to non-resident companies. Under law passed by the Austrian Parliament in July 2015, the Austrian withholding tax rate on dividend distributions to non-resident companies will be 27.5% (increased from the current rate of 25%). The effective date is due to be 1 January 2016.


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The 25% rate of withholding tax would continue to apply to general bank and savings accounts. It appears the 25% rate would also continue to apply with respect to capital income realized on the sale of shares, distributions from private foundations, and profits from derivatives.


Read a September 2015 report [PDF 87 KB] prepared by the KPMG member firm in Luxembourg: Austrian withholding tax increases in 2016

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