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Measure Name
Date when measure came into force
Restriction of deductibility of interest 2011/01/01
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Generic Tax Name Corporate income tax
Tax name in the national language Körperschaftsteuer
Tax name in English Corporate tax
Member State AT-Austria
Tax in force since 1989/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

1988 Corporation Tax Law, BGBl. (federal gazette) No 401/1988, as last amended by BGBl. I No. 105/2014.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

The beneficiaries of the tax are the federal government (67.8 %), the provincial governments (20.5 %) and the local authorities (11.7 %).

 
Geographical Scope Austria, but see also information regarding taxpayer.
 
Taxpayers
Domestic-source income of non-resident entities is Taxed
Not Taxed
Comments
 
Tax object and basis of assessment
As general rule, taxable income under corporate income tax includes also








Comments

Income considered Domestic income
Worldwide income (subject to double-tax relief)
Comments

Comments

Taxable income derived by corporation.

 

The taxable income of corporations is computed in a similar manner to that of individuals and partnerships. Income from seven sources of income according to income tax law is included. All income generated by corporations which are subject to double-entry book-keeping according to the Commercial Code is by law regarded as income from trade and business.

Profit distributions do not reduce the taxable income. This is true for regular and hidden profit distributions. A hidden profit distribution is any pecuniary benefit granted to a shareholder, which is not disclosed as distribution of income and which would not have been granted to a third party under similar circumstances.

 
Deductions, Allowances, Credits, Exemptions
Valuation of inventory
System First-in first-out (FIFO)
Last-in first-out (LIFO)
Average cost
Specific identification (unit method)

Comments

Depreciation rules
 
Buildings
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments
Average depreciation period 33  Years
Average depreciation rate 3.0 %
 
Movable (tangible) assets
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments

Depreciation rate: 6-20%

Average depreciation period
Average depreciation rate
 
Movable fixed assets
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments

Depreciation rate: 10-20%

Average depreciation period
Average depreciation rate
 
Intangible assets
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments

Depreciation rate: 10-20%

Average depreciation period
Average depreciation rate
 
Land (if any)
System Straight-line method
Declining balance
Production method
Combination of above
Other
Not-depreciable

Comments
Average depreciation period
Average depreciation rate


Comments

Are there limits to interest deductions? Yes No
If yes:
Definition of deduction limit

Comments

Non-Deductibility of financing costs related to acquisitions of participations within a group.

Interest paid to a related entity is not deductible if that interest is taxed in the hands of the recipient at a rate of less than 10%.


Is there an Allowance for Corporate Equity? Yes No
If yes:
Notional rate applied for allowance

Comments

Losses
Loss carry-forward exists? Yes No
If yes:
Time limit: Indefinite
 
Size limit:
 
Loss carry-backward exists? Yes No
If yes:
Time limit: Indefinite
 
Size limit:
 

Comments

Loss carry-forward: Indefinite carry-forward of losses incurred in previous years is allowed.

Limitation: Losses of previous years can only be set off against 75 % of the annual income. Carry-forward of excess loss is permitted.



Comments

The income is the total of income derived balanced against losses. The taxable income of corporations is computed in a similar manner as stated for assessed income tax (see assessed income tax). Income from all seven sources of income is included.

In general deductible expenses are those which are incurred wholly and exclusively in acquiring, securing and maintaining of income.

Deductible items are e.g.:

  • Salaries incl. employee fringe benefits (cars, meals)
  • Depreciation
  • Interests on loans or debts to third parties
  • Royalties
  • financing costs related to acquisitions of participations within a group are not deductible as of 2011.

Deductible accruals are severance payments, future and current pensions and uncertain obligations and possible losses resulting from pending transactions.

 

Loss carry-forward: Indefinite carry-forward of losses incurred in previous years is allowed.

Limitation: Losses of previous years can only be set off against 75 % of the annual income. Carry-forward of excess loss is permitted.

 
Rate(s) Structure
Nominal corporate income tax rate Rate: 25.00 %

Central government surcharge Rate:
Regional government surcharge Rate:
Local government surcharge Rate:
Combined rate (all-in rate) Rate: 25.00 %


Comments

Special tax rate for SMEs
Special tax rates apply to SMEs: Yes No
If yes:
Nominal corporate income tax rate Rate:
Central government surcharge Rate:
Regional government surcharge Rate:
Local government surcharge Rate:
Combined rate (all-in rate) Rate:


Comments

 Flat rate of 25 %.

 
International aspects
Treaty countries Non-treaty countries
 
Repatriated profits are taxed according to the following system Exemption system Exemption system
Tax credit Tax credit
Deduction Deduction
 
Interest received is taxed Yes No Yes No
Tax rate on interest received 25.00 % 25.00 %
Outgoing dividends withholding tax 25.00 % 25.00 %
Outgoing interest payments withholding tax 25.00 % 25.00 %
 
Foreign losses can be set-off Yes No Yes No
If yes:
Minimum direct or indirect shareholding to qualify loss-offset (if applicable) 50.00 % 50.00 %
 
Loss carry-forward exists? Yes No Yes No
If yes:
Time limit: Indefinite
 
Indefinite
 
Size limit:
 
Loss carry-backward exists? Yes No Yes No
If yes:
Time limit: Indefinite
 
Indefinite
 
Size limit:
 
Controlled foreign company (CFC-)rules exist? Yes No Yes No
If yes:
Time limit: Indefinite
 
Indefinite
 
Size limit:
 
Threshold for capital or voting power held directly or indirectly by resident in non-resident company
CFC-rules apply if foreign tax rate is lower than
CFC-rules apply for passive income only? Yes No Yes No

Comments   Treaty countries

Repatriated profits:

Austria applies the exemption method for dividends received by a foreign subsidiary in case the participation is at least 10% and the participation is held for at least 1 year. Austria does not provide for a CFC legislation; however, if profits are distributed from a foreign subsidiary that is subject to an effective tax rate of 15% or less and predominantly generates passive income, the application of the exemption method for the dividends received is denied; instead, the credit method applies to these profit distributions (switch over clause). The switch-over-clause also applies to capital gains that arise from the alienation of such subsidiary.

Outgoing dividends withholding tax:

Dividends are in general subject to a 25% withholding tax according to Austrian domestic law. This withholding tax may be reduced under the applicable tax treaty with the residence state of the foreign recipient of the dividends or under the EU-parent-sub-Directive.

Foreign losses:

Under the Austrian group taxation regime losses of foreign subsidiaries that are members of the Austrian tax group (direct or indirect majority investment required in an company located in a country providing wide exchange of information to Austria) can be set-off from the domestic group income under the condition that these loss have to be recaptured when the foreign group member leaves the tax group or offsets the losses abroad.


Comments   Non-treaty countries

Repatriated profits:

Austria applies the exemption method for dividends received by a foreign subsidiary in case the participation is at least 10% and the participation is held for at least 1 year. Austria does not provide for a CFC legislation; however, if profits are distributed from a foreign subsidiary that is subject to an effective tax rate of 15% or less and predominantly generates passive income, the application of the exemption method for the dividends received is denied; instead, the credit method applies to these profit distributions (switch over clause). The switch-over-clause also applies to capital gains that arise from the alienation of such subsidiary.

Outgoing dividends withholding tax:

Dividends are in general subject to a 25% withholding tax according to Austrian domestic law. 

Foreign losses:

Under the Austrian group taxation regime losses of foreign subsidiaries that are members of the Austrian tax group (direct or indirect majority investment required in an company located in a country providing wide exchange of information to Austria) can be set-off from the domestic group income under the condition that these losses have to be recaptured when the foreign group member leaves the tax group or offsets the losses abroad.

 
Measures against profit shifting
 
Do Thin Capitalization (TC) rules exist? Yes No
If yes:
Date of first introduction
Introduced as Explicit TC law
Part of CIT law
Test for TC Ratio
Arm's length
If ratio
Value of numerical ratio:
Definition numerator
Definition denominator
 
Debt considered for test Internal
Internal and external
TC depends on shareholding? Yes No
Substantial shareholding threshold
 
Type of shareholding Direct
Indirect
Automatic remedy Yes No
Remedy Non-deductibility of interest
Reclassification as dividend
 
Rules apply to All companies
Foreign companies
Non-EU companies
Transfer pricing rules exists? Yes No
If yes:
Arm’s length principle applied? Yes No
 
Remedy Fee
Tax base increase
 
Tax due date

In general, corporate income tax is assessed for each calendar year. The tax return has to be filed by April 30 of the following year. A maximum extension until March/April of the second following year could be granted, if the return is prepared by a tax advisor. Quarterly prepayments, which are based on last assessed year, are due on February 15, May 15, August 15, November 15.

Deviating fiscal year (i.e. a fiscal year ending other than on December 31) is possible.

 
Tax collector

Federal tax administration.

 
Special features

A group taxation system enabling the pooling of profits and losses of group-companies came into effect at the beginning of 2005. This system enables the pooling of profits and losses of group members which are resident in Austria. Furthermore, it is also possible to use losses of foreign subsidiaries held by Austrian group companies. Thus, losses from non-resident subsidiaries can be set-off from the domestic group income under the condition that these losses are recaptured when the foreign subsidiary leaves the tax group or offsets these losses abroad.  As of 1 March 2014, entities resident in a non-EU-Member State can only be part of a tax group if an agreement providing for comprehensive mutual assistance between that state and Austria exists. As of 1.1.2015, losses of foreign group members will only be taken into account up to 75% of the positive income of the resident group member entities.

 

The basic requirements for setting up a tax group are direct or indirect majority investment in a corporation, maintenance of the group for at least three years.

 

Corporations subject to unlimited tax liability have to pay minimum corporate income tax regardless if profitable or not. This minimum corporate income tax amounts to €3,500 per annum for joint stock companies or €1,750 for limited liability companies. Minimum corporate income tax of €5,452 is due if the taxpayer is a bank or insurance company. The minimum corporate income tax is also levied on a quarterly basis. 

 

Non-resident corporations are basically treated in the same way as non-resident individuals. Therefore they are liable to corporation tax income on income generated in Austria.

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d51bf

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 5,835.00 EUR 1.84
2011 5,582.00 EUR 1.81
2010 4,978.00 EUR 1.69
2009 4,177.00 EUR 1.46
2008 6,335.00 EUR 2.17
2007 6,094.00 EUR 2.16
2006 5,229.20 EUR 1.96
2005 5,082.00 EUR 2.01
2004 4,963.00 EUR 2.06
2003 4,579.00 EUR 1.98
2002 4,559.00 EUR 2.02
2001 6,235.00 EUR 2.83
2000 3,865.00 EUR 1.81

Comments