Paying Taxes in Austria

1. What is the corporate tax in Austria?
The headline rate of the corporate tax in Austria is of 25% and it is payable within one month after receiving the tax assessments, issued in few weeks after filling the tax return. In general, companies have to file the corporate income tax within three months after the end of the fiscal year. However certified tax advisers may extend the period by another year.

2. What is the VAT in Austria?
Some business sectors, goods and services of public interest such as food, health and cultural sector benefit from lower rates, but the generally applicable VAT rate is 20%.

3. How can the VAT be refunded in Austria?
In Austria most companies are eligible for VAT refunding. However in some business sectors such as banking sector, holding companies etc., VAT is not recovered. Foreign businesses that don't perform taxable services are able to claim VAT refund for most of their expenses concerning their business. In order to obtain the VAT refund entrepreneurs must choose the individual recovery period that can be three months up to one year. The minimum amount reclaimable is EUR 360 for three months period. The next step implies filing an Application for Refund of Value Added Tax. The refund is effectuated by credit transfer to the bank account of the company within 6 to 24 months after claiming. The required documents are the original invoices, the Application for Refund of Value Added Tax, Original Certificate of Status Taxable Person, and Questionnaire 18, an additional form completed when the refund is applied for the first time.

4. What is the dividend tax in Austria?
Under Austrian tax law, dividends are subject to withholding tax deduction of 25%.

5. Are there any incentives for foreign investors in Austria?
Austria is a prolific location for foreign investors, not only regarding the economical possibilities, and productive workforce, but also due to the comprehensive system of national and local incentives programs. Austria offers varied incentives depending on the geographic location, number of jobs created, technology etc. Examples of incentives under Austrian law are grants for company premises, machinery and equipment, funds for maintaining jobs, allowance for research expenditures, structural fund programs etc. Incentives in Austria vary from preferential loans, guarantees and grants.

6. Why do I need a local accountant for my Austrian business?
Any Austrian company is advised to use the services of an accountant to review its accounts, administer payroll, maintain the company accounts and take care of VAT registration and fillings. Working with a local accountant offers great advantages for the trust factor, and also for better knowledge of the system. An experienced local accountant can facilitate the financial procedures, having a better understanding of the required procedures of a company in Austria.

BridgeWest offers Company Registration in Austria