Taxes in Europe Database v2
1988 Income Tax Law, BGBl. (federal law gazette) No 400/1988, as last amended by BGBl. I No. 105/2014
The beneficiaries of the tax are the federal government (67.8%), the provincial governments (20.5%) and the local authorities (11.7%).
Austria, but see also information regarding taxpayer.
Individuals (natural persons) are taxpayers regarding assessed income tax.
In general only natural persons resident in Austria are subject to income tax on their worldwide income (unlimited tax liability). A person whose domicile or usual place of abode is located in Austria is deemed to be resident. The domicile of an individual is the place where he occupies a residence under circumstances which indicate that he will retain and use it not merely temporarily.
Usual place of abode is given in case of physical presence over extended period of time. Individuals are considered to have a usual place of abode in Austria if they remain there for 183 days or more in any tax year. Citizenship and nationality are therefore not relevant.
Natural Persons who are resident outside Austria are either exempt or only liable with respect to income sources or assets that are suited in Austria.
A certain basic income remains tax-free for every person liable to unlimited income tax. According to tax scale in general annual income up to € 11,000 is tax free.
Income is assessed individually, but to claim a sole-earner deduction it is essential to live in a marriage or a marriage-like partnership, to have at least one child and the partner may only have a maximum income of € 6,000 per year.
Sole earners and single parent's tax credits: basic amount of € 494 per year with one child, if a family allowance is received for for this child during a minimum of seven months. A scaled child supplement is applied. If a taxpayer is entitled to a child supplement, it is possible that these amounts are paid out as negative tax.
Other tax credits are the alimony tax credit and the children tax credit (the children tax credit is paid as transfer together with other family transfers).
For Pensioners there is a pensioner tax credit of € 400 per year which is settled automatically by social security institutions. Under several conditions the pensioner tax credit amounts € 764 per year.
The following are the most important non-taxable payments:
The tax on capital gains on immovable property in general is a final tax.
Quarterly advance payments (on 15th February, 15th May, 15th August, 15th November). Generally, the filing date for assessment is the 30 April of the following year, in the case of online submission the 30 June of the following year.
Federal tax administration. The income tax is assessed annually. In the case of income from employment and pensions, tax is withheld by employer and social security monthly (see "Wage Tax"); in the case of certain kinds of income from capital assets (e.g. dividends, bonds and bank interests) tax is withheld at source at a rate of 25 % (see "Capital Yields Tax"). In case of capital gains on immovable property tax can be withheld at source by notaries and lawyers.
Individuals that are resident outside Austria are either exempt or only liable with respect to income sources and assets that are suited in Austria. EU citizens may opt for unlimited tax liability if at least 90 % of their income is subject to Austrian income tax or the foreign income does not exceed 11,000 Euro.
Partnerships are not income tax subject themselves but considered as transparent for income tax purposes. The profit of partnerships is taxed on the level of the partners and not on the company's level. Nevertheless it has to calculate its profits and determine each partner's share in the profit.
Business losses can only be carried forward, if the profits are determined by accrual based accounting. If the profits are determined by cash accounting, losses can be forwarded for three years.
Losses which are a result of private activities (income from employment, rental income, income from capital and other income, as eg the sale of real estates) can not be forwarded.