Taxes

One of Austria’s foremost attractions as a business location is its business-friendly tax system. Profits are taxed with a standard tax rate of 25 percent - a strong showing even in comparison to the new EU member states.

Levies such as trade or net worth taxes – the norm in many other countries – simply don’t exist here.

Modern concept of group taxation

If two or more companies exercise the option to form a tax group, the taxable results of the domestic “group members” will be attributed to their respective parent company and finally taxed balanced on “group parent” level. Tax losses of group companies can be consolidated with taxable profits of other group companies.

Tax Incentives for Research

The Austrian tax system is very attractive for companies. It grants a tax allowance for research amounting to 25 percent. This means that 125 percent of research expenditures can be deducted from profits. If the research expenditures exceed the average made during the preceding three years, a tax-exempt research allowance of 35 percent may be possible.

Tax Incentive for Training

For the education and training of employees employers can reclaim a tax allowance of 20 percent.

Personal Income Tax

The income of persons is taxed with a progressive tax rate between 0 and 50 percent.

The list of additional tax breaks and tax reduction opportunities is quite extensive. Take advantage of our offer for a personal consultation, with no obligation on your part.