Key tax factors for efficient cross-border business and investment involving Austria.
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Limited Liability Company (GmbH) and Stock Company (AG).
The statutory minimum share capital, amounts to EUR 35,000 for a GmbH, and EUR 70,000 for a AG. At least 50% of the share capital has to be paid in cash before registration.
A company is resident if either its legal seat or its place of management is in Austria. Resident companies are taxed on their worldwide income. Non-resident companies are taxed only on their Austrian source income.
Deadline for filing tax return is April 30 (in hardcopy) or June 30 (via internet) of the following tax year; exemptions apply if the return is prepared by a professional tax advisory firm.
The standard corporate income tax rate is 25 percent.
25 percent (exemption for payments to certain EU affiliates).
20 percent (exemption for payments to certain EU affiliates).
20 percent if work is executed in Austria.
Full exemption. For foreign participations: no minimum participation or minimum holding period is required subject to minimum taxation of distributing company (and exchange of information agreement for non-EEA companies). For domestic participations: no minimum participation or holding required.
Capital gains on the disposal of shares in non-resident companies may qualify for a participation exemption (under certain conditions). Option for taxable status available. Domestic capital gains are always taxable at 25 percent.
Losses may be carried forward indefinitely. No carry-back is allowed. Losses carried forward may be lost after a substantial change in ownership of the company’s share capital or, in certain circumstances, a reorganization. Minimum taxation: 75 percent of the annual income can be sheltered by tax loss carry-forward, whereas 25 percent is subject to an immediate tax liability.
Group companies (and, under certain circumstances, non-resident companies) can consolidate their profits and losses.
Losses of non-resident members can be offset against a maximum of 75 percent of the profits of resident members (from 2015 onwards), profits of non-resident group members are not consolidated. Applies only to group members from EU member states and to companies from countries with which Austria has entered into full administrative assistance.
Real estate transfer tax is triggered when (i) real estate is directly transferred or (ii) at least 95 percent of the company shares are transferred to one shareholder or a group of companies subject to group taxation. Rate: 3.5 percent of the consideration if real estate is directly transferred; if there is a transfer of 95 percent to one shareholder or a group of companies, the tax base is formed by real estate value (usually below the fair market value). Special provisions apply to transfers of interest in partnerships.
Yes, the rate depends on the type of contract.
Yes, real estate transfer tax of 3.5 percent plus 1.1 percent cadastre registry fee of the consideration and real estate tax between 0.5 permille and 1.5 permille on the assessed value.
Yes, specific anti-abuse provision.
Transfer pricing guidelines were issued by the Federal Ministry of Finance in 2010 and refer to the OECD Guidelines, the authorized OECD approach and various court decisions. Although not legally binding, they serve as a guideline for tax audits.
The non-binding transfer pricing guidelines also include detailed documentation requirements. An implicit obligation relating to detailed documentation on transfer prices is also derived from general provisions of the Federal Fiscal Code.
No specific thin capitalization legislation. According to administrative practice and court rulings, a debt-to-equity ratio of between 3:1 and 4:1 is recommended.
A general anti-avoidance rule is included in the Federal Fiscal Code implementing a 'substance over form' principle.
Dividends from international holdings are taxable with a credit for underlying tax rather than exempt if covered by an ordinance of the Federal Minister of Finance to avoid tax fraud and abuse. This can be assumed if in general:
Yes, but limited to certain issues (transfer pricing, reorganization tax matters and tax groups).
Premium for costs incurred for R&D.
The standard rate is 20 percent and the reduced rate is 10 percent.
KPMG in Austria
T: +43 1 31332 414
KPMG in Austria
T: +43 1 31332 697
KPMG in Austria
T: +43 1 31332 3304