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Private foundations in Austria are subject to tax on their assets transferred, on their income received and on their income/assets distributed.

Transfer of assets tax – Assets contribution to a Foundation are taxed at 2.5% rate (plus 3.5% in the case of real estate).

Income earned taxes - Private foundations are treated as corporate entities for tax purposes and therefore subject to corporate income tax at the standard rate of 25%.

Dividend income received by a private foundation on a shareholding held in a resident entity is exempted from corporate income tax. Dividends received from foreign entities are tax-exempt, provided that withholding taxes have not been reduced under a tax treaty.

Interest income from bank deposits, bonds or mutual funds, as well as capital gains, are subject to tax at standard rates, but it may be credited against withholding tax on distributions to beneficiaries.

Income distribution tax – Income distributed by the foundation is subject to a final withholding tax of 25%. Withholding tax may be reduced under a tax treaty.

  • Offshore Income Tax Exemption
  • Offshore capital gains tax exemption
  • Offshore dividends tax exemption
  • CFC Rules
  • Thin Capitalisation Rules
  • Patent Box
  • Tax Incentives & Credits
  • Property Tax
  • Wealth tax
  • Estate inheritance tax
  • Transfer tax
  • Capital duties
  • 25% Offshore Income Tax Rate
  • 25% Corporate Tax Rate
  • 25% Capital Gains Tax Rate
  • 0% Dividends Received
  • 28% Dividends Withholding Tax Rate
  • 27.5% Interests Withholding Tax Rate
  • 20% Royalties Withholding Tax Rate
  • 0 Losses carryback (years)
  • Indefinitely Losses carryforward (years)
  • FIFOLIFO Inventory methods permitted
  • 18.12% Social Security Employee
  • 21.48% Social Security Employer
  • 55% Personal Income Tax Rate
  • 20% VAT Rate
  • 93 Tax Treaties

Country details

German (Austria), Croatian, Hungarian, Slovenian

The Republic of Austria (in German, Republik Österreich), is a landlocked Central European state, traversed by the river Danube. It is a member of the European Union and it has a population of 8.5 million people. Austria borders with the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the west. Its capital is Vienna, its official language is German and its official currency is the Euro (EUR).

Austria is a federal and democratic republic governed by the Constitution of 1920, which has been extensively amended later.

Austria is composed of nine federal states. The head of state is the Federal President, elected by direct popular vote for a term of six years. The president appoints the head of government, who holds the title of chancellor; and on the proposal of him or her, appoints the other ministers. The president may also dismiss the chancellor or cabinet, without the need for ministerial endorsement.

The head of government is the Federal Chancellor, who heads the Council of Ministers, and is responsible to the Austrian Parliament.

Austria has one of the highest per capita incomes worldwide. The country also has one of the highest Human Development Index rates, with a high standard of living and a high-quality health and education system.

Austria is an industrially developed country with an important service component. Services account for 67.5% of the economy; however, the remaining 30.3% includes important industrial sectors such as machinery manufacturing, the steel sector, and the chemical and automotive industries.

Austria is known internationally for the sophistication of the electronics sector, especially for its custom-made electronics.

Although some industries, such as iron and steel and chemical plants, are large companies employing thousands of people, businesses in Austria are relatively small on an international scale. In general, small and medium-sized enterprises predominate. Only 167 companies have more than 1,000 employees.

The Austrian industrial sector has a strong development in the arms, machinery, and textiles sectors.

As for the service sector, regarding tourism, Austria is one of the 10 most popular destinations in the world. Finance and telecommunications are the largest sources of capital.

Tax treaties

Country Type Date Signed
Singapore DTC  2001-11-30
Slovakia DTC  1978-03-07
Hungary DTC  1975-02-20
Qatar DTC  2010-12-30
Estonia DTC  2001-04-05
Korea, Republic of DTC  1985-01-08
Sweden DTC  1959-10-14
Denmark DTC  2007-05-25
Former Yugoslav Republic of Macedonia DTC  2007-09-10
Lithuania DTC  2005-04-06
Bahrain DTC  2009-07-02
Azerbaijan DTC  2000-07-04
Russian Federation DTC  2000-04-13
Ukraine DTC  1997-10-16
Andorra TIEA 2009-09-17
Malta DTC  1978-05-29
Mongolia DTC  2003-07-03
Bulgaria DTC  2010-07-20
Thailand DTC  1985-05-08
Belgium DTC  1971-12-29
Barbados DTC  2006-02-27
Italy DTC  1981-06-29
Slovenia DTC  1997-10-01
Belarus DTC  2001-05-16
Libya DTC  2010-09-16
Tunisia DTC  1977-06-23
Cuba DTC  2003-06-26
Germany DTC  2000-08-24
Ireland DTC  1966-05-24
Gibraltar TIEA 2009-09-17
Algeria DTC  2003-06-17
France DTC  1993-03-26
Saint Vincent and the Grenadines TIEA 2009-09-14
United States DTC  1996-05-31
Netherlands DTC  1970-09-01
Romania DTC  2005-03-30
Guernsey TIEA 2014-05-14
Malaysia DTC  1989-09-20
Poland DTC  2004-01-13
Bosnia and Herzegovina DTC  2010-12-16
Indonesia DTC  1986-07-24
Jersey TIEA 2012-09-07
Iran DTC  2002-03-11
Armenia DTC  2002-02-27
Latvia DTC  2005-12-14
Saudi Arabia DTC  2006-03-19
Philippines DTC  1981-04-09
Morocco DTC  2002-02-27
Monaco TIEA 2009-09-15
United Arab Emirates DTC  2003-09-22
Brazil DTC  1975-05-24
New Zealand DTC  2006-09-21
Mexico DTC  2004-04-13
Switzerland DTC  1974-01-30
Georgia DTC  2005-04-11
Cyprus DTC  1990-03-20
Croatia DTC  2000-09-21
Portugal DTC  1970-12-29
Turkmenistan DTC  1981-04-10
Greece DTC  2007-07-18
Kazakhstan DTC  2004-09-10
Canada DTC  1976-12-09
Czech Republic DTC  2006-06-08
Nepal DTC  2000-12-15
San Marino DTC  2004-11-24
Israel DTC  1970-01-29
Kuwait DTC  2002-06-13
United Kingdom DTC  1969-04-30
Turkey DTC  2008-03-28
Albania DTC  2007-12-14
Kyrgyzstan DTC  2001-09-18
Spain DTC  1966-12-20
Serbia DTC  2010-05-07
Luxembourg DTC  1962-10-18
Chile DTC  2012-12-06
Liechtenstein DTC  1969-11-05
Tajikistan DTC  2011-06-07
Pakistan DTC  2005-08-04
Belize DTC  2002-05-08
Australia DTC  1986-07-08
South Africa DTC  1996-03-04
Venezuela DTC  2006-05-12
Japan DTC  1961-12-20
India DTC  1999-11-08
Norway DTC  1995-11-28
Uzbekistan DTC  2000-06-14
China DTC  1991-04-10
Finland DTC  2000-07-26
Egypt DTC  1962-10-16
Moldova, Republic of DTC  2004-04-29
Syrian Arab Republic DTC  2009-03-03
Viet nam DTC  2008-06-02
Hong Kong, China DTC  2010-05-25

Tax treaties Map



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