TAX CONSULTATION IN AUSTRIA

TAX CONSULTATION IN AUSTRIA

Main taxes for individuals in Austria:

• Income tax

The Income Tax Act (Einkommensteuergesetz) lists particular types of income:

• income from agriculture and forestry
• from self-employed work
• from trade and craft activities
• from employment
• from capital assets
• from rents and leases, and so on

In Austria there is a progressive rate of income tax (0-50%). The level of income tax depends on the taxable income received in a calendar year. The calendar year is the same as the business year and comprises a period of twelve months.

• Social insurance contributions

Social insurance contributions have to be paid by both employees and employers (exception: accident insurance is only paid by employers). In 2022, the following rates applied (employees’ and employers’ shares combined):

• sickness insurance: manual workers, white collar workers, freelance workers, new self-employed (GSVG): 7.65%
• accident insurance: manual workers, white collar workers, freelance workers: 1.2%
• unemployment insurance: manual workers, white collar workers, freelance workers: 6%
• pension insurance: manual workers, white collar workers, freelance workers: 22.8%, new self-employed (GSVG): 18.5%

In addition, employees and freelance workers pay 0.5% of their gross income as Chamber of Labour contribution and 1.00% as the housing construction promotion levy (freelance workers do not pay any housing construction promotion levy).

Main taxes for business entities in Austria

• Corporation tax (Körperschaftsteuer)

Corporation tax is 25 per cent of taxable income, irrespective of level of income. Unlike income tax, corporation tax is not charged on a graduated progressive scale, but is a standard rate.

• Value added tax (Mehrwertsteuer)

It is paid as an indirect tax on the purchase of goods or services by the final consumer. The standard VAT rate is 20%. For certain operations, a tax rate of 10% (domestic passenger transportation, except for air transportation; delivery of books, newspapers, magazines, food products; rental of residential premises) and 13% (delivery of animals, plants, firewood; cinema and circus performances, etc.) are applied.

• Municipal tax

It is paid by employers in the amount of 3% of the monthly salary of each employee.

Other taxes

• real estate transfer tax (Grunderwerbsteuer);
• vehicle tax (Kfz-Steuer; engine-related insurance tax);
• turnover tax;
• capital gains tax.

Optimization of taxation in Austria

Any business, and even more so a newly created company, needs the professional help of lawyers in matters of tax optimization. Legal tax optimization solutions are what we specialize in. We will help you save money so that your business develops quickly and brings profit.

A tax lawyer (lawyer) in Austria will help you choose the optimal tax system for your business in Austria.

What is included in the duties of a tax lawyer of Prykhodko and Partners law firm:

• Consulting on taxes in Austria;
• Calculation of taxes in Austria;
• Preparation of tax documents in Austria;
• Tax representation in Austria;
• Settlement of tax disputes in Austria.

Representation in the tax authorities in Austria by Prykhodko and Partners law firm includes consulting, preparation of all necessary documentation, relations with the tax authorities of Austria and the EU in matters of Einkommensteuer, Grunderwerbsteuer, Mehrwertsteuer, Körperschaftsteuer, etc.