Page 9 - MAZARS 2024

Austria VAT compliance in their EU-home country). Monthly/ Certain private expenses are deductible under various
quarterly returns are filed electronically, and annual
conditions (e.g. donations to charities, churches, tax
returns must be completed by June 30 of the following advisory fees, tax losses carried forward).
year. Companies represented by a tax advisor can have the Partnerships are not subject to income tax themselves.
deadline extended substantially. Their profit is subject to either income tax or corporate
Excise for certain alcoholic drinks (e.g. wine, beer), natural income tax at the level of the partners.
Mazars Austria GmbH gas, oil, coal, etc., in line with the EU system.
Kärntner Ring 5–7 A compulsory public social security system is in place
1010 Vienna Personal income tax / Social security system in Austria.
Phone: +43 1 531 74-0 Social security contributions for employees are partly
vienna@mazars.at According to the domestic tax law, individuals are borne by the employee and partly by the employer.
www.mazars.at deemed to be tax resident in Austria if they have their The base is the gross salary and benefits. A maximum
residence or habitual abode in Austria. In this case, the contribution base of EUR 84,840 per year for 2024 applies.
individual's global income is subject to Austrian income Social security contributions amount to 39.05% (18.07%
tax. Other individuals are subject to tax on income from employee and 20.98% employer). Additionally, employers
their Austrian sources. are obliged to pay other payroll-related costs amounting
Corporate taxes and other direct taxes Tax losses can be carried forward indefinitely (but only 75% The term income is specified in the Income Tax Act. to approximately 8.6%.
of the profit of a single year can be offset). Tax rates are progressive from 0% (for yearly income For self-employed persons, the same maximum
Under domestic tax laws, corporations are deemed Thin capitalization rules (TCR) are in place in accordance up to EUR 12,816) to 55% (for yearly income exceeding contribution base is used (EUR 84,840 per year for 2024).
to be tax resident in Austria if they have either their with the EU-ATAD (Anti-Tax Avoidance Directive). Further EUR 1,000,000). Certain allowances are available Social security contributions amount to 26.83%. This
registered seat or their effective place of management restrictions relate to the deduction of interest paid depending on the taxpayer’s family status. Income tax insurance covers health insurance, pension insurance and
in Austria. In this case, the global income of the corporation to intercompany recipients. CFC rules were introduced on wages is withheld and directly paid to the tax office accident insurance. For the first 3 years, lower contribution
is generally subject to Austrian corporate income tax. in accordance with the EU-ATAD. by the employer. bases are applicable.
Other corporations are subject to Austrian corporate Some 100 double tax treaties are in place. Withholding Investment income (e.g. interest, dividends, capital gains No social security contributions are due for income not
income tax only on the basis of income generated from tax can be reduced at source to treaty rates from investments) is generally subject to a separate tax exceeding EUR 518.44 per month.
Austrian sources. Partnerships are not subject to CIT. or under the EU-Parent-Subsidiary Directive, if formal rate of 27.5%. Capital gains from real estate are subject
The corporate income tax rate is 23%. requirements are met. to a tax rate of 30%.
The tax base is generally determined based on the result
of the income statement under commercial law, which VAT and other indirect taxes
is then amended insofar as the tax law contains deviating
rules (e.g. tax exemptions, restrictions of deductions, The harmonized EU-VAT-system applies. The general
or tax-specific valuation rules). rate for the sale of goods and services is 20%. Reduced
There is a yearly minimum CIT amounting to EUR 3,500 rates of 10% or 13% apply, for example, for agricultural
for public companies (AG) and EUR 500 for limited liability products, real estate rentals with a residential purpose,
companies (GmbH). Any unused minimum amounts can entertainment, and art. Many exemptions are in place (e.g.
be offset against future CIT payment obligations. exports, interest, insurance premiums, sale of real estate).
Entrepreneurs with annual net sales not exceeding EUR
Average wage
Transfer pricing in Austria 35,000 are exempt from VAT obligations. Non-residents Wage related taxes in Austria Minimum wage* in private sector
Arm's length principle ü Since 1988 trading in Austria (B2C) are subject to registration in EUR in EUR
Since 1988 / immediately, unless they apply the OSS system (central
Documentation liability ü extended in 2016 2,301 4,753**
APA ü Since 2011 VAT options in Total wage cost 2,979 129.50% 6,155 129.50%
Every business unit Austria Applicable / limits Employer's social security and other contributions*** 678,66 29.50% 1,402 29.50%
Country-by-Country of a CbC-relevant group
liability ü must submit a notification Distance selling As of July 1, 2021, Gross salary**** 2,301 100.00% 4,753 100.00%
about the reporting entity. the OSS system is applicable. Personal income tax 90,08 3.92% 648,17 13.64%
Master file-local Call-off stock ü Employees' contributions 367,59 15.98% 852,09 17.93%
file (OECD BEPS 13) ü –
applicable VAT group registration ü Net salary 1,843 80.11% 3,253 68.44%
Penalty Cash accounting - yearly
amount in EUR (approx.)* EUR 700,000/year * Example – employee in the retail business in Austria, 1st professional year.
lack of documentation ü Up to EUR 50,000 ** Average monthly salary of full time employed persons in Austria in 2021 (yearly remuneration divided by 12 months).
Import VAT deferment ü *** In addition to social security contribution to family equalization fund, surcharge, severance payment and municipal taxes are also included here.
**** Monthly gross salary (yearly remuneration divided by 12 months).
Potential fines according Gas, electricity, heating, emission
tax shortage ü
to Tax Criminal Law.
quotas, cell phones, game consoles,
Local reverse charge construction services, scrap, auction
(foreclosure) of immovable property.
Persons who are linked
directly or indirectly Option for taxation
Related parties > 50% by ownership (capital)
or control (same letting of real estate ü
management, same owners). supply of used real estate ü Florian Würth
Safe harbors No – VAT registration EUR 35,000/year Partner – Tax Advisor – CPA
Phone: +43 1 531 74-780
Level of attention paid by Tax threshold** E-mail: florian.wuerth@mazars.at
Authority 8/10 * Not applicable for corporate enterprises.
** VAT exemption for domestic small businesses.
8 Mazars Central and Eastern European tax guide 2024 Central and Eastern European tax guide 2024 Mazars 9